61st Report - Financial sustainability of children’s care homes

Select Committee
Public Accounts Committee HC 1233 16 January 2026
Report Status Government responded
Conclusions & Recommendations 29 items (6 recs)
Source View on Parliament website
Government Response (AI assessment · 26 of 29 classified)
Accepted 5
Acknowledged 14
Not Addressed 6
Rejected 1
Clear

Recommendations

1 results
2 Rejected
Reaffirm commitment to reducing children in unregistered homes to zero by 2027 and detail specific actions.
Recommendation
It is unacceptable that children are placed in illegal settings that are not inspected, increasing safety risks and offering no assurance over the quality of care. Over the last five years, local authorities have reported placing more and more children … Read more
Government Response Summary
The government rejects the recommendation to reaffirm a commitment to zero children in unregistered homes by 2027, stating that a fixed deadline does not reflect the complexity. However, it outlines actions to tackle the issue, including £560 million capital funding, new secure placements opening between 2026-2031, new enforcement powers for Ofsted (from Summer 2026), and Ofsted reforms to increase focus on sufficiency.
HM Treasury
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