Key findings from the latest report on Children's Homes in England

Across all of the childcare and education markets in which Christie & Co specialises, staff are critical to the outcomes of the children they support, nurture and educate, and the quality, success and sustainability of children’s residential services.  

On 29 May 2025, the Department for Education (DfE) released ‘Children’s homes workforce census: Stage 2 and 3’ - a research project it commissioned in 2023 and 2024, which was carried out by Verian and the National Children’s Bureau. Building on previous research from 2014, its primary goal was to provide current and comprehensive evidence about the workforce in children's homes in England, with a specific focus on recruitment and retention.  

In terms of services and support, the report found that the majority of homes provide long-term care (89%). Since 2023, there has been an increase in the number of homes meeting the needs of those with complex needs, from 66% to 80%. There were notable differences based on the sector or ownership of the children's homes; privately owned and operated children’s homes were more likely to provide long-term care (95%) compared with local authority-run homes (62%). 

It detailed findings around the reported capabilities of children's homes in meeting the various needs of children and found that 52% of homes surveyed were capable of supporting those with autism spectrum disorder, 40% of homes are equipped to support mental health problem needs, and 16% have skills and experience to support children with complex health needs.  

The average occupancy was cited as being 3.8 registered places per home, a decrease from 4.2 registered places in 2023. An average of 2.9 places are occupied, leaving an average of 0.9 places unoccupied in each home. Most commonly, the reason for places being unoccupied was that a child’s referral was pending.   

On the core themes of workforce, the report estimates a national workforce size is 46,330, including managerial and care staff, up from 39,300 in 2023. Most staff are on full-time contracts (83%), with few on zero-hour contracts (4%), and average hourly pay has increased, with registered managers earning £22.51 per hour and care staff £13.06 per hour. It's worth noting that the research period was before the introduction of the National Living Wage increase that came in on 1 April 2025 and the increased employer national insurance contributions.  

Finding staff with the right experience and skills remains a significant challenge for the sector. This was evident in the worryingly high staff turnover figure in the report, which sits at an average of 29%.  

SUPPLY OF CHILDREN’S HOMES IN ENGLAND 

While staffing remains a key challenge, so does the supply of registered places to meet the growing demand for children’s services. 

A sufficiency audit published in October 2024 also revealed that 77 local authorities in England had firm budgeted plans to open their own children’s homes by the end of the 2026/27 financial year. Of the 237 planned homes, the greatest number will be in the North West, where 43 new local authorities plan to provide an additional 129 registered places.  

Local authority expansion plans, teamed with further expansion across the PVI sectors in order to meet demand, indicate no sign of workforce recruitment or retention challenges being mitigated in the short term. 

Over the past few years, we have been proud to sponsor The Children’s Homes Association (CHA), which has enabled us to support members, providers, and stakeholders aligned to CHA’s shared vision for exemplary care and improved outcomes for children and young people. If you need a formal valuation, or the growth, or potential sale of your business, to find out more about the changing landscape of the children’s social care market, get in touch: childcare@christie.com