Councils across England are continuing to place vulnerable children in unregistered, and therefore illegal, children's homes, incurring staggering costs of up to £2 million per child per year. These placements, often in properties that are dilapidated and lack basic amenities, highlight a persistent failure to provide adequate care for children with complex needs, despite government bans.

Five years ago, investigations into similar unregulated children's homes revealed children as young as 11 housed in squalid conditions, including tents, caravans, and properties linked to criminal activity. These revelations led to a government ban in 2021 on the use of unregulated homes for under-16s, intended to end the practice.

However, local authorities, struggling to find suitable accommodation for children with the most challenging needs, are increasingly resorting to these illegal settings. The BBC has learned of unregistered placements costing as much as £13,000 per week for a single child requiring significant staff support. These homes, often run from ordinary houses or flats, lack Ofsted registration or inspection, leaving children's welfare at risk.

Dr. Mark Kerr, chief executive of the Children's Homes Association, described the sector as a "Wild West." He attributed the current crisis to "a culmination of 10 years of systemic failure to develop specialist provision for our most vulnerable children."

According to the Public Accounts Committee, approximately 800 such unregistered placements are currently being used by councils in England. This situation persists despite the legal prohibition, indicating a critical gap in the availability of appropriate care facilities for children with complex behavioral and emotional needs.

These placements are not only illegal but also astronomically expensive. The £13,000 weekly fee for one teenage girl translates to over £676,000 annually, a figure that can escalate to £2 million per child per year when considering the full scope of associated costs and the intensity of care required.

The lack of regulation means these homes are not subject to the safety standards and oversight applied to registered children's homes. Previous investigations by the BBC have exposed severe safeguarding failures, including instances of child trafficking, sexual abuse, and teenagers being exploited by organised crime groups while in unregulated care.

The ongoing reliance on these illegal settings raises serious questions about the effectiveness of current safeguarding measures and the government's ability to ensure the safety and well-being of its most vulnerable children. The systemic failure to create sufficient specialist provision continues to leave children in potentially dangerous and substandard environments.