Liverpool hosts more than a dozen looked-after children in unregistered children's homes, illegal in England and not overseen by Ofsted.

Data show systemic safeguarding failures, with multiple councils receiving safeguarding complaints about Prospero’s staff and a total of 44 staff-related safeguarding allegations from January 2024 to April 2026 (16 upheld, 4 unfounded).

Examples such as Map Adventures, Cog, and Servizi Care Services involve placements exceeding 28-day limits or unclear legality, sometimes using tents or non-traditional settings, currently under ongoing Ofsted scrutiny.

Prospero Health and Social Care is the largest operator, accounting for 7.6 million pounds in staffing placements across 14 councils for 86 unregistered homes over two years, while claiming it provides staffing rather than running illegal accommodations.

The case highlights profit-driven risk in safeguarding, with owners and staff from diverse backgrounds entering the illegal care market, underscoring the need for tougher enforcement and smarter policy solutions to protect vulnerable children.

There is a rising crackdown: Ofsted identified 710 illegal homes in the year, up from 144 in 2020, with high-profile cases including Catalyst Care Ltd’s 92,000-pound fine and a 15-year-old girl abused in an illegal Durham home connected to multiple criminal cases.

Liverpool City Council leader called on the government to strengthen oversight and enforcement to address unregistered homes.

Authorities say collaboration among children’s services, planning services, and Merseyside Police has strengthened, and Ofsted is informed when a looked-after child is placed in an unregistered home.

Investigative reporting shows councils spend over 125 million pounds annually on placing vulnerable children in illegal, unregistered care homes, with private providers paid around 250 million for about 1,800 unlawful placements in the past two years.

Some providers exploit a 28-day holiday loophole to arrange long-term placements in unregistered facilities; at least 11 companies are involved in such arrangements, with several named as prolific operators.

National data show unregistered homes rose from 144 (2020-21) to 680 (2024-25), though figures likely underestimate the true extent.

Liverpool Council data up to July show nine out-of-area placements of children in unregistered homes, according to Local Democracy Reporting Service.