LONDON, July 2 -- The government of the United Kingdom issued the following news:

Sufficiency-the amount of suitable accommodation available for children in care and care leavers-is shaped by a complex set of factors,rather than by the volume of provision alone.

Local authorities have a duty to ensurethereare enough suitable places for looked-after children, close to their home and able to meet their needs. However, while there are now more children's homes than ever before, homes are getting smaller,areoften not intherightplaces,orareunable to meet the needs of children needing residential care.Meanwhile, local authorities are spending record figures on placements.

Research, published today by Ofsted, reveals thatissues withworkforce capacity, affordability of housingandlack of foster carers has led to children being placed further from home,or in placements not suited to their needs.

Thisproblem of sufficiencyiscontributing toa sharp growth inlocal authorities'use of unregistered children's homes, as Yvette Stanley, Ofsted's National Director for Regulation and Social Care, explains in an article published today.

Unregisteredhomes put children at risk of being looked after by unvetted and unsuitable people.There are also indications that profiteering and criminality are increasingly a problemin the sector.

Today's article explains how Ofsted will crack down on unregistered children's home providers, through criminal investigations and prosecution, and by working with partners such as the local authority or the police to take immediate action to safeguard children. At the same time, Ofsted's upcoming consultation on children's social care inspection reforms will include proposals aimed at eradicating the use of illegal unregistered provision by awarding'urgent improvement'and'needs attention'grades where local authorities are using illegal provisionandhave not demonstrated determined action to match local sufficiency with local need.

Ofstedhasalsotodayupdateditsguidanceon registering children's homes to prioritise providers offering specialist provision in the right places.With a growing number of applications, the revisedapproachaims tomake sure that Ofsted's finite regulatory resources are used to process applications that meetlocal authorities'most urgent sufficiency needs and support the welfare of children.

The Children's Minister, Josh MacAlister,has written to Ofsted expressing hisstrong supportfor a targeted approach to processing applications that can provide homes for children when and where they are needed most. As part of a list of criteria for priority applications, Ofsted will expect applicants to have engaged directly with the relevant local authorities to make sure that the proposed provision meets the needs of children locally and regionally.

Sir Martyn Oliver, His Majesty's Chief Inspector, said:

Illegalhomes are a scourge on our society, placing profit above children's welfare and safety.It'sabsolutely rightthat wedo everything in our power to prevent children from being placed inunsafe and unsuitable accommodation.

The research published today highlights that we needthe right homes in the right places, not more homes in the wrong places.Changing our approach to focuson sufficiency, as well asrootingout criminality, will ensurewe'replaying our part intackling thisissue.

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