England is examining Denmark’s residential care model as rising spending and hundreds of children in illegal homes sharpen scrutiny of how the country supports children in care.
The National Audit Office (NAO) reported that local authorities spent £3.1 billion on residential care in 2023-24, a 96% increase from 2019-20. Over a separate period, the number of children in residential care rose 10% from March 2020 to March 2024, reaching 16,150. Spending climbed much faster than the number of children receiving care.
The Children’s Commissioner for England counted 669 children living in unregistered homes on Sept. 1, 2025. Separately, council payment records reviewed by a joint Guardian and Bureau of Investigative Journalism investigation showed more than £250 million spent on 1,800 unlawful placements over two years, equivalent to more than £125 million a year.
The NAO identified shortages of suitable places and a provider market led largely by private companies as factors behind higher costs. Councils and taxpayers carry the financial burden, while children face the consequences of unsuitable or unregistered placements.
UK Children’s Minister Josh MacAlister traveled to Copenhagen to study Denmark’s approach as part of a Department for Education (DfE) review, The Guardian reported. At Josephine Schneider’s House, a 12-resident home in Frederiksberg, older residents can move to a semi-independent flat and remain in care through age 23, the newspaper reported. It contrasted that option with England, where young people generally leave residential homes at 18.
Some staff at the Danish home have degree-level qualifications in social pedagogy, The Guardian reported. The field draws on child development, psychology and ethical practice. MacAlister wants the review to consider placement decisions less tied to a young person’s 18th birthday, the newspaper reported.
Emmanuel Akpan-Inwang, director of Lighthouse Pedagogy Trust and leader of the review, cautioned against importing Denmark’s approach wholesale, saying it reflects decades of development. The 2024 DfE workforce census found that 24% of children’s home staff had been in the sector for a year or less, while 29% had two to three years’ experience. The Guardian reported that pay, working conditions and limited training contribute to retention pressures.
Official 2024 figures cited in Parliament said private companies ran 83% of children’s homes but provided 77% of places. The Children’s Wellbeing and Schools Act gives the Secretary of State power to set profit limits through regulations. MacAlister told The Guardian that the power has not been used and officials are awaiting clearer financial information from a new market oversight body. He also proposed strengthening councils’ role in purchasing placements and expanding foster and kinship care.
