Council faces large children's care bill amid "flagrant profiteering"

By Mark Smith - Local Democracy Reporter 31st Mar 2025

The number of private homes increased by 12 per cent in 2023 and 83 per cent of children's homes are now owned by companies (Image via: LDRS)
The number of private homes increased by 12 per cent in 2023 and 83 per cent of children's homes are now owned by companies (Image via: LDRS)

Cheshire West and Chester Council was charged more than £27,000 by a private home to look after one vulnerable child for a week, new figures have revealed.

Data obtained by the LDRS under the Freedom of Information Act indicate the extent of the costs borne by the authority for providing accommodation for looked after children.

Councils are required by law to provide accommodation to children in need but costs are increasingly skyrocketing nationally, due to a increasing demand and lack of provision.

More councils are relying on private firms to provide accommodation but this can incur significant costs.

According to the data, the council works with 37 private children's home providers.

The highest amount the council paid for one week for a young person to be given private accommodation in the last financial year was £27,870.

The council said this was in response to 'significant concerns regarding risk-taking behaviour'.

The situation echoes that seen around the country, with other councils and Government watchdog Ofsted also raising concerns.

According to Government figures, the number of private homes increased by 12 per cent in 2023, and 83 per cent of children's homes were now owned by companies, many run by private equity groups.

Neighbouring Halton Council recently revealed it had been charged £25 million in one year by homes to accommodate 93 children, some charging £15,000 per child, per week.

A Cheshire West spokesman said: "While many cost are driven by the market, the council does have a process of reviewing cost and the extent to which placements are meeting the individual needs of children and improving outcomes for the young person."

Earlier this year, it was revealed the authority spent £1,887,494 on housing children in unregistered accommodation between August 2023 and August last year. Unregistered homes – which are not monitored by Ofsted – are considered illegal.

At the time, Cllr Adam Langan, Cheshire West and Chester's cabinet member for children and young people, hit out at what he called 'flagrant profiteering' seen in some parts of the sector.

Ofsted recently stated it wanted to tackle 'excessive' profit-making by private-equity owned children's homes, as part of wider efforts to strengthen the regulation and inspection of children's social care, to 'make sure their decisions are made in children's best interests and not solely for profit'.

Share:


Sign-up for our FREE newsletter...

We want to provide chester with more and more clickbait-free news.