Ofsted Gains New Powers to Fine Councils Over Unregistered Children’s Homes

Ofsted has been granted new authority to penalise local councils that place children in unregistered homes, as the number of such placements has surged sevenfold in recent years. The watchdog’s expanded enforcement powers, introduced under the Children’s Wellbeing and Schools Act 2026, come amid growing concern over systemic gaps in the care system that leave vulnerable children in unregulated settings.

Data shows unregistered placements rose from 147 in the 2020-21 period to 982 in 2023-24. The Department for Education has funded an expanded investigative team to support Ofsted’s new fining powers.

Councils Push Back on Responsibility

The Local Government Association has responded by arguing that councils often face a shortage of registered provision and should not be held solely accountable for wider market failures. Recent watchdog reports have highlighted specific regional pressures. In Somerset, inspections conducted in late spring and published in June 2024 rated children’s services as requiring improvement in three out of four areas. Inspectors identified a shortage of foster homes and a reliance on unlawful unregistered placements, while the Care Quality Commission flagged similar concerns over delays in adult social care assessments.

Southeast Asia Cracks Down on Unlicensed Daycare

In Indonesia, a criminal investigation into an unlicensed daycare facility in Yogyakarta has widened significantly. Authorities have named 14 additional suspects — including caregivers, security personnel and administrative staff — bringing the total to 27. The facility was the site of alleged abuse where children aged between two and six were reportedly found tied up. In response, Indonesian officials have urged regional authorities to conduct immediate inspections of daycare centres and are planning to establish thousands of child-friendly care centres nationwide.

In Malaysia, the state of Sabah has identified 95 unregistered childcare centres currently operating. State Minister Julita Majungki stressed the urgency of using registered facilities, noting that the region will need approximately 110,000 childcare places by 2030 to accommodate a projected population of 445,000 children under four. In Selangor, a dedicated task force identified more than 900 unregistered care and childcare centres between 2023 and 2025. While some have since been registered or whitelisted, hundreds were forced to close after failing to meet regulatory standards.

Australia: Children Sleeping on Office Floors

The Queensland government has admitted that vulnerable children have been sleeping on the floors of child safety offices due to a lack of available residential care. Officials confirmed the practice has occurred during emergencies and has been documented as far back as 2019. The state currently manages approximately 12,500 children in out-of-home care, with more than 2,200 living in residential facilities.

In South Australia, the Edge Early Learning centre in Gawler East was ordered to close for three months in July 2026 following a serious safety breach. The Education Standards Board took action after a child with a known soy allergy was hospitalised after being served meatballs containing the allergen. It was the second time the facility faced closure for allergen management failures, following a previous incident in April 2026.

West Africa Tightens Oversight

The Anambra State Government in Nigeria has also moved to strengthen its regulation of children’s homes. Officials announced a zero-tolerance policy on illegal adoptions and child trafficking, initiating a statewide revalidation and inspection process for both registered and unregistered homes to ensure compliance with safety and legal standards.

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