Commonweal Housing has published a report, written by researchers at Public First, investigating the growing use of unregistered children’s homes in the UK, and the drivers for their increased use. Cases of unregistered children’s homes (UCH) rose by more than 370% between 2020/21 and 2024/25 with some individual placements costing up to £40,000 per week. Researchers spoke to frontline key workers, Directors of Children’s Services, and sector experts as part of the study. A local authority typically uses an illegal home when lawful options are not available fast enough. Growth in their use has correlated with three long-term trends:

• Rising complexity – children more likely to be involved with gangs, county lines, serious violence, exploitation, or experience severe mental health crises. Many have been through the criminal justice and health sectors, or experienced breakdowns at home or in foster placements.
• Shortage of specialist, secure, supported placements for those who pose/face serious risks.
• Poor market incentives; providers fear taking high-risk children will destabilise existing homes and damage Ofsted ratings. Many would rather leave beds empty than accept a teenager linked to gangs, repeatedly going missing, or presenting extreme behaviour.