UK Government to Curb Profits in Children's Care Homes

New legislation aims to limit excessive profits and improve care standards for vulnerable children.

The UK government plans to introduce measures requiring large children's home providers to disclose their finances to prevent excessive profiteering.
A 'backstop' law may be implemented to cap profits if providers do not voluntarily limit their earnings.
Ofsted will gain enhanced powers to investigate and fine exploitative care providers, including those running unregistered homes.
The reforms follow reports of abuse and neglect in some care homes, prompting calls for a major overhaul of the system.
Local authorities face rising costs, with some placements exceeding £500,000 per year, while private providers report profit margins averaging 23%.