Illegal children’s homes increase exploitation risk
New report highlights issues linked to placements in unregistered children’s homes
Researchers at Anglia Ruskin University (ARU) have shared significant concerns over the increased risk of exploitation facing children as a result of being placed in unregistered children’s homes.
In the first academic research of its kind, ARU academics interviewed frontline professionals, including specialist police officers, charity workers and safeguarding leads about the patterns of risk they see when working with vulnerable children who have been placed in unregistered settings.
Despite being illegal, the report highlights how these homes are used by numerous local authorities across England and Wales.
In the most extreme examples, researchers were told how organised crime groups had infiltrated an unregistered home, with a member of the group working as a young person’s counsellor, and another being likened to a “trap house” – slang for a house used to store and supply drugs.
The research found that a mix of factors, including lack of governance and standards, the heightened vulnerabilities of children, which has led to them requiring placements, and the geographical location of the settings, led to the young people facing serious risk of exploitation and harm.
Because of the lack of regulation, police reported that they are often unaware that unregistered homes operate in their area. They have no knowledge of the young people being housed and the safeguarding they may need, and often only discover the homes through serious incidents or when children are reported missing.
Staff in unregistered homes are not held to the same standards as Ofsted-registered homes, nor do they have access to the same training, vetting or supervision, meaning they often cannot always recognise or respond to harm. In some cases, they can enable abuse and exploitation.
Participants shared that some placements are known to criminal networks and in extreme cases, staff have been infiltrated or groomed. One participant said: “One is an organised crime group (OCG) and infiltrated the staff [in the] care home. A young lad that they're exploiting wanted some support, so [they] found a counsellor for him who was part of the OCG. He [tells] stories to the counsellor, which goes straight back to the criminals because they'd organised it. Now that young lad won't trust any professional whatsoever.”
All children’s homes must be registered with Ofsted to ensure that they are regularly inspected to meet minimum standards and have appropriate adults working and supporting the children accommodated within them. However, many homes are currently unregistered, being run on a commercial basis, and are housing some of the most vulnerable children in the UK.
Ofsted reported that in 2024/25, they had opened 870 investigations into what they discovered were 680 unregistered settings, the use of which is illegal.
Researchers also heard experiences of cost and capacity pressures on local authorities, driving out-of-area placements and the clustering of homes in deprived neighbourhoods, near transport hubs and in areas affected by serious violence and county lines drug offences.
One interviewee reported “We see properties being used as bases, young people congregating, older males attending, dealing drugs, antisocial behaviour, weapons [and] some of these placements have more in common with trap houses than care settings. You’ve got people coming and going, children going missing for days.”
"Whilst our sample of participants was small, they represented both regional and national organisations, in professions including policing and ‘missing and exploited specialists’, who described a deeply concerning picture of children becoming highly visible to exploiters, yet almost invisible to the safeguarding systems with a duty to protect them.
“There are so many factors that are contributing towards this, not least the chronic lack of capacity facing local authorities. There simply aren’t enough spaces for the children who need to be housed, which is driving placements in commercially-operated, unregistered settings. Ofsted figures show the number of homes to be in the hundreds, so the need for urgent action is clear.
“This is by no means a reflection on every unregistered setting - many are supporting young people in the best possible way, but with professionals reporting so many experiences of exploitation linked to these homes, we must address the fact that we are failing hundreds of children by allowing them to be hidden from protection in unregistered homes.”
Sarah Colley, Research Fellow at ARU’s International Policing and Public Protection Research Institute (IPPPRI)
“The rise in unregistered children’s homes should not be viewed as a minor administrative matter, but as an issue of national safeguarding importance. Our findings raise serious questions about oversight, accountability and the conditions in which some of the country’s most vulnerable children are being placed.
“The financial implications are also considerable. Estimates suggest that local authorities are spending hundreds of millions of pounds each year on unregistered placements. At the same time, wider concerns about commercialisation within the children’s residential care market have intensified.
“This report does not seek to demonise the entire sector. Many unregistered homes provide vital care with great commitment and skill, often in very challenging circumstances. It is also important to recognise that some settings may be working towards registration or awaiting their inspections. However, where children are living in homes that sit outside proper regulatory oversight, there must be serious questions about safety, quality and accountability, and the linked risks, from county lines exploitation to inappropriate care must be addressed.”
Co-author Dr Paul Nelson, Senior Lecturer in Criminology at ARU
“The Eastern Region Special Operations Unit (ERSOU) welcomes and supports academic research that seeks to improve understanding of the risks faced by vulnerable children, including those living outside registered care frameworks.
“Evidence demonstrates that children living in unstable or unregistered environments may face an increased risk of exploitation by organised criminal networks. As part of the National County Lines Coordination Centre network, ERSOU recognises that county lines criminality remains a national threat, placing a small but highly vulnerable cohort of children at significant risk of grooming and exploitation.
“Children experiencing trauma, isolation or instability are particularly susceptible and vulnerable. Those in care often face additional challenges, including disrupted relationships, mental health needs, experiences of abuse or neglect, and often repeated episodes of going missing. Organised criminal groups deliberately target these vulnerabilities, using manipulation, coercion and intimidation. Initial offers of belonging or financial reward are frequently followed by control through threats, violence or debt.
“Safeguarding vulnerable children is central to the county lines response. ERSOU works closely with regional police forces and partners, including local authorities, schools and care providers, to strengthen safeguarding practice and ensure a coordinated response to the threats posed by serious organised crime.”
A spokesperson for the Eastern Region Special Operations Unit (ERSOU), the regional organised crime unit covering police forces in Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Kent, Norfolk, and SuffolkThe report contains a number of recommendations set to be shared with national governing agencies, including enforceable accountability for local authorities choosing to illegally place children in unregistered homes, commissioning based on risk, rather than purely on availability, and safeguarding responses that reflect the modern ways in which children can be exploited through the use of social media and messaging apps.