Children in care have reported being groomed and sexually assaulted in homes run by a firm making huge profits.
Multiple employees of Calcot Services for Children say vulnerable young people were failed.
BBC News has found it made profits of 36% last year, double that of other big care providers – figures already considered excessive by a watchdog.
Calcot said profits were high because of built up investment, and it prioritises safeguarding children.
The company runs eight homes, four schools and supported living accommodation in southern England. It made profits of 42% in 2020 and 36% in 2021, using an industry-standard measure.
That is more than double the average annual profit made by the biggest 15 providers of children’s services in Great Britain over the past five years – as highlighted in a recent report by the government’s competition watchdog. The study found that profits of 17% were much higher than would be expected if the market was operating well.
The sector is in “crisis” – says the providers’ group, the Independent Children’s Homes Association – with increasing demand for places, severe staff shortages and ballooning costs.
But children’s homes are the last resort for many young people, with the foster care system often judged as inappropriate for those who have suffered the worst abuse and neglect. And the time when homes were largely managed by local councils has long gone – more than 80% are now run by private companies.
The BBC has seen leaked company records and confidential local authority briefings. It has also spoken to a dozen current and former Calcot employees. They told us the company had accepted high-risk children, who came with increased levels of funding, but did not meet all their needs and keep them safe. Our investigation found:
- Children had reported being groomed for sex, given alcohol, and also assaulted by staff
- Allegations of child-on-child sexual abuse and suicide attempts after youngsters had absconded were not reported to Ofsted despite an obligation to do so
- Calcot did not provide some dedicated care and teaching staff despite receiving specific funding from local authorities
- Claims of inadequate staffing at homes where there were serious incidents – including an assault and rape allegation
- Some support workers had been asked to sign non-disclosure agreements when they left the company
Source: BBC
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