The cost of new regulations for teenagers in care could be nine times more than Government funding and result in providers withdrawing thousands of beds, according to a new report.

By October, all semi-independent living homes for 16 and 17-year-old teenagers in care need to have submitted applications to register with Ofsted.

Ofsted will regulate the homes against new national standards, which are in line with those for other accommodation for children in care.

The report was produced by the County Councils Network (CCN) and London Innovation and Improvement Alliance, who both said they supported the introduction of standards.

However, they have raised concerns that care providers would either pass the extra costs of regulations on to councils or leave the market.

According to a survey of providers of semi-independent living accommodation, nine in 10 providers who intend to register their beds said they would raise their prices to local authorities.

The survey found that one in five beds will not be registered because of the new regulations.

The report estimated that the reforms could cost nine times current Government funding allocations by 2026/27.

Cllr Keith Glazier, CCN children’s services spokesperson, said: ‘The introduction of a central inspection regime should allay concerns that children in care were in a two-tier system where young people were regulated up to the age of 16 and those older were not.

‘But this new regulation has come at a significant cost to providers, who are looking to pass the cost onto local authorities.

‘Councils cannot afford this and this will push many to breaking point at a time when other reforms to the children’s social care system are being introduced.

‘Government should therefore fully fund this new inspection regime – the shortfall cannot be made up from vital local services.’