Private equity owns 11 of England’s 20 biggest children’s care providers, research finds
Investigation comes amid growing calls for an end to ‘obscene’ profit-making in care sector Private equity companies now own or partly own 11 of the 20 largest providers of fostering and children’s homes in England, as calls to ban “obscene” profit-making in children’s care grow. An investigation by the thinktank Common Wealth found the “big four” independent fostering agencies – which provide…
Private equity firms now own or partially own 11 of England's 20 largest children's care providers, according to a Common Wealth investigation. This comes amid growing calls to end "obscene" profit-making in the care sector. The "big four" independent fostering agencies, which provide nearly a quarter of fostering placements in England, have paid out over £200 million to shareholders in interest payments since 2020.
Andrea Egan, general secretary of Unison, called the findings a "wake-up call" for systemic change in children's social care, stating that profiteering from vulnerable children is "nothing short of obscene." At least one in three fostering agency placements and one in five children's homes placements are run by firms backed by institutional finance.
The four largest fostering companies have used shareholder loans, paying or reserving at least £205 million in interest to shareholders since 2020. National Fostering Group, the largest independent fostering provider in the UK, is owned by Stirling Square Capital Partners and has paid over £116 million in interest on investor loans since 2020.
Common Wealth recommends a temporary pause on for-profit providers in children's social care, a full audit of illegal children's homes, and the use of compulsory purchase orders to bring low-quality providers into public hands.
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