Councils pay more than £125m a year placing vulnerable children in illegal care homes in England

Records show more than 480 private firms have been paid £250m for 1,800 unlawful placements of children over the past two years. Composite: Guardian Design/Getty Images

Councils are paying more than £125m a year of taxpayers’ money to place vulnerable children in illegal care homes across England, an investigation has found.

The Guardian and the Bureau of Investigative Journalism (TBIJ) have uncovered a booming industry of businesses profiting from a shortage of beds for the most at-risk children in Ofsted-inspected homes.