William Eichler 09 September 2026

Councils paid £250m for illegal child placements

Councils paid £250m for illegal child placements image
© pics five / Shutterstock.com.

Local authorities in England have spent £250m on more than 1,800 unlawful placements of children in unregistered homes over the past two years, a joint investigation has revealed.

Undertaken by the Guardian and the Bureau of Investigative Journalism (TBIJ), the research found that more than 480 private companies received the payments, with over £40m going to operators linked to known care failures.

At least nine councils spent more than £1m each on individual placements. The investigation found that capacity shortages mean illegal care facilities are used by almost every council in the country.

Children's Commissioner for England Dame Rachel de Souza said the findings pointed to systemic failings, warning that unregistered homes let children be treated as a ‘business opportunity.’ She called for stronger oversight of how public money is spent on such placements.

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