Cost of place in children’s care homes in England hits almost £320,000 a year

The £3bn children’s homes market is ‘dysfunctional’ and too often fails to deliver a good service to young people, a National Audit Office report said. Photograph: baona/Getty Images

The cost of a single place in a residential children’s care home in England has nearly doubled in five years to an average £318,000 a year, with private firms racking up huge profits as a result of market failure, according to the public spending watchdog.

The £3bn children’s homes market, which is increasingly dominated by private firms, some funded by private equity, is “dysfunctional” and too often fails to deliver a good service for youngsters or value for money, a National Audit Office (NAO) report said.