The Council has decided to address the placement of looked after children in unregistered residential units amidst a national sufficiency crisis and concerns about profiteering.

URL: https://milton-keynes.moderngov.co.uk/ieDecisionDetails.aspx?ID=1643

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: 1.      This Council: a)            Endorses the principle that in all actions concerning children, undertaken in whatever circumstances, the best interests of the child shall be the paramount consideration. b)            Notes that – where appropriate – looked after children may be placed in residential units registered with and regulated by OFSTED. c)             Recognises that, due to the national sufficiency crisis, situations can occur whereby a child is unable to return home, no other family or friends are available, no in-house or external fostering bed is offered, and no registered residential units are willing to receive the child, even when a national search is undertaken. d)            Regrets that local authorities are therefore put in a position whereby some children have to be placed in unregistered arrangements, which in itself is an unlawful arrangementand OFSTED are informed accordingly, due to there being no other available option. e)            Is aware that, within Milton Keynes, an increasing number of applications to establish residential homes is being received based on class C3 certificates of lawfulness or change of use applications to class C2. f)              Believes that some of these applications may be promoted by businesses with little experience of children’s care, taking advantage of cheaper costs than elsewhere, particularly London, to place children from outside Milton Keynes in homes that may receive the necessary planning permissions but not subsequently be registered with OFSTED. g)            Understands that – notwithstanding the principle, described above, of the best interests of the child being the primary consideration - planning law does not permit the needs of children to be taken into account when making decisions, instead basing decisions on material planning considerations and case law, nor that a significant number of the placements to be approved can be reserved for Milton Keynes children as the planning system cannot determine who will be housed there. 2.      That this Council resolves to: a)            noting that the wider issue of placement cost pressures due to profiteering requires national change,ask the Chief Executive to reiterate this very unsatisfactory situation to the attention of the Department for Education and the Local Government Association; and to request that remedial action be taken; b)            ask the Chief Executive to write to OFSTED to reiterate our concern that they should investigate concerns raised about such placements and settings in a more robust and timely matter and provide feedback on their actions and highlight we have raised the matter with the Department for Education; and c)      invite the Cabinet to consider expanding its current plans to establish two Council-run residential children's homes to the extent that resources permit, but possibly in conjunction with reputable not-for-profit organisations or adjacent authorities. 3.             That this Council: a)            aware that a potential long-term solution for the Council is to supply within the city sufficient fully registered and regulated accommodation in which we have confidence to meet our needs, request that the development of the city’s next Local Plan, currently being drafted, continue to examine the projected need for children’s placements and to how best this might be met through its Housing and Economic Development Needs Assessment (HEDNA) in line with national policy requirements, alongside other ongoing efforts and work being conducted by the Council to tackle sufficiency, alongside the work being undertaken on the new Draft Placement Sufficiency Strategy due to reviewed by the Children and Young People’s Scrutiny Committee later in June; and b)            notes that while we can and should continue to carry out this work locally, this would not address the placement by other councils of children in unregistered places in our local authority area, nor the soaring costs of placements, and that the only way to truly resolve the crisis in children’s social care is the delivery of national reform.

Date of Decision: July 16, 2025