In a significant development, Sandwell's children's services have achieved a "good" rating from Ofsted for the first time in over a decade. This marks a notable turnaround since the services were deemed "inadequate" in 2013 and 2015. The transformation, driven by Sandwell Children's Trust since 2018, underscores years of dedicated efforts to improve the quality of care. The latest Ofsted inspection commended the effective help provided by social workers and the well-coordinated responses to domestic abuse and exploitation. Children in Sandwell are now living in safe, stable environments, with their voices playing a crucial role in shaping care plans. Council leader Kerrie Carmichael expressed pride in the progress, while Emma Taylor, CEO of Sandwell Children's Trust, emphasized the commitment to centering children in their work.

However, this positive development contrasts sharply with a broader crisis in children's care across England. Ofsted's annual report reveals that nine out of ten councils are resorting to unregistered care homes due to a shortage of registered facilities. These unregistered homes, which can charge exorbitant fees of up to £30,000 per week, are described by Ofsted's chief inspector Sir Martyn Oliver as an "ongoing national scandal." The report highlights a troubling trend where the profit motive is dictating the location of children's homes, often in areas with cheaper housing, leading to a mismatch between supply and demand.

Despite a record high of 4,010 registered children's homes, issues of location, affordability, and suitability remain prevalent. The north-west of England, for instance, hosts 26% of these homes, while only 18% of looked-after children reside there. This imbalance is compounded by the fact that 84% of children's homes are privately owned, with the top 10 owners controlling nearly 20% of the market. The financial burden on local councils has escalated, with spending on looked-after children rising from £3.9 billion in 2015-16 to £8.1 billion in 2023-24.

The Children's Wellbeing and Schools Bill is set to introduce new legislation aimed at curbing the use of unregistered homes. Currently, Ofsted can only issue warning letters to unregistered providers, but the new bill is expected to grant the authority more power to enforce compliance. The Local Government Association and the Children's Homes Association have called for a comprehensive national plan to address these systemic issues, urging the government to collaborate with local authorities, the NHS, and care providers to ensure children's needs are met effectively.