A children’s home is a residential setting that provides care and accommodation for children and young people who are looked after by a local authority or placed through other arrangements. Every children’s home in England must be registered with Ofsted before it can operate. Supported accommodation, as defined in the Supported Accommodation (England) Regulations 2023, is accommodation that provides housing and support to young people aged 16 and 17 who are looked after by a local authority or are care leavers. The aim is to help young people develop independence in preparation for adult living, while keeping them safe. Unlike a children’s home, supported accommodation provides support, not full-time care. All providers must be registered with Ofsted.

For Children’s home, the typical start-up cost, excluding the property itself, is upwards of £150,000. This covers staff salaries during the pre-opening and initial operating phase, furniture, training, insurance, database systems, vehicle costs, and recruitment. Some estimates place the initial capital needed to demonstrate financial viability at between £50,000 and £100,000, with Ofsted requiring proof that the home can be sustained for at least six months.

For supported accommodation, start-up costs are generally lower but still substantial. You will still need to fund property fit-out, compliance works, furnishings, staff recruitment and training, and Ofsted registration fees (£3,600 for a small SA undertaking). Providers should also budget for several months of operating costs before reaching capacity. We recommend building a realistic project budget early – contact RASP Compliancy for a tailored breakdown.

Once a complete application is submitted, Ofsted aims to make a decision within 47 days. However, Ofsted recommends allowing at least 16 weeks from the start of the application before the intended opening date. In practice, the average time from application acceptance to registration is approximately 17 weeks. Delays commonly occur due to discrepancies in information, incomplete documentation, or changes to personnel during the process.

For supported accommodation, the process follows similar stages: designing your service model and Statement of Purpose, preparing policies against the four SA Quality Standards, completing SC1/SC2 application forms and submitting to Ofsted, then an Ofsted site visit and manager interview. Timescales are broadly similar to children’s homes. If you are converting an existing semi-independent service, having strong documentation ready from the outset will help avoid delays.

Registration fees depend on the size of the home:​

Annual fees must be paid to maintain registration:

​Supported accommodation annual fees are set separately by Ofsted. Providers should confirm the current annual fee schedule directly with Ofsted or via the registration guidance at the point of application.

The Responsible Individual is a senior leadership role required when an organisation (rather than an individual) registers to operate a children’s home. The RI supervises the management of the home, acts as the primary point of contact with Ofsted, liaises with stakeholders, and ensures the organisation meets all regulatory requirements.

In supported accommodation, the equivalent role is the Nominated Individual (NI). If the registered provider is an organisation, they must appoint a Nominated Individual who is a director or equivalent. The NI acts as the organisation’s point of contact with Ofsted, oversees the running of the service and supports the Registered Service Manager to safeguard young people’s welfare and maintain compliance with the SA Regulations.

Yes, if the registered provider is an organisation (such as a limited company), it must appoint a Responsible Individual. If the provider is an individual person who also manages the home, an RI is not required.

For supported accommodation, if the registered provider is an organisation, they must appoint a Nominated Individual. If the provider is a sole individual, a separate NI may not be required, but this should be confirmed at the point of Ofsted registration.

There is no specific qualification mandated for the Responsible Individual role. However, Regulation 26 of the Children’s Homes (England) Regulations 2015 requires the RI to demonstrate that they are “fit” to carry out the role and possess the necessary skills, experience, and qualifications to supervise the management of the home effectively. Ofsted expects the RI to have strong leadership and safeguarding knowledge, familiarity with care standards and regulatory responsibilities, and the ability to provide effective oversight. In practice, prior experience of managing or working in a children’s home is strongly recommended.

For the Nominated Individual in supported accommodation, there is similarly no mandatory specific qualification. However, the NI must have the skills, knowledge and experience to oversee the service and support compliance with the SA Regulations and Quality Standards, and will be assessed by Ofsted during the registration process.

There is no formal limit on the number of homes a single RI can be responsible for. However, the RI must be able to demonstrate to Ofsted that they can effectively supervise the management of each home individually and all homes overall. Salaries for experienced RIs managing multiple services can exceed £80,000.

In supported accommodation, the Nominated Individual and Registered Service Manager must similarly be able to demonstrate effective oversight of all settings within the registered undertaking. There is no fixed limit, but Ofsted will assess whether the governance structure is genuinely robust for the number of premises being operated.

The Responsible Individual or Nominated Individual must undergo an Enhanced DBS check with barred list information. Ofsted will also assess their fitness through an interview during the registration process and can scrutinise their fitness at any time during registration.

The RM handles day-to-day operations, while the RI provides high-level oversight, compliance monitoring, and strategic leadership.

A Registered Manager must hold, or be working towards, the Level 5 Diploma in Leadership and Management for Residential Childcare (England). Any manager starting the role must achieve this qualification within three years. They must also be of integrity and good character, have appropriate experience and skills, and be physically and mentally fit to manage the home.

Additionally, a person can only manage a children’s home if they have worked in a role relating to residential care for children within the last five years, for a continuous period of at least two years.

For supported accommodation, the equivalent role is the Registered Service Manager (RSM). The RSM must be of integrity and good character, physically and mentally fit, and have worked for at least 2 years within the last 5 years in a position relevant to the residential support of children or adults. Unlike the CH Registered Manager, there is no mandatory Level 5 Diploma for the RSM role, but they must demonstrate the skills, knowledge and experience to manage the service effectively and will be assessed by Ofsted at interview.

In most cases, yes. A children’s home generally falls under Use Class C2 (Residential Institutions), while a standard family home is Use Class C3 (Dwellinghouses). Changing from C3 to C2 typically requires full planning permission because of the greater impact on the surrounding area, including increased traffic from staff and visitors, altered building requirements, and potential operational noise.

For supported accommodation, the planning position is different. Shared SA houses for young people may operate under Use Class C3 rather than C2, particularly where the staffing model is less intensive and the setting is more home-like. C3(b) allows up to six residents living together as a single household with care or support provided. However, this depends on the specific model, staffing arrangement, and local planning authority interpretation. You should always seek specific planning advice for your proposed property and service model before committing.

Use Class C3(b) allows up to six residents to live together as a single household where care is provided. However, case law (North Devon District Council v First Secretary of State) has established that a children’s home with non-residential staff does not constitute a “single household” and therefore does not qualify under C3(b). C3(b) is generally considered to apply to adults, not children in care settings.

Key considerations include:

• Location safety and suitability for the children to be accommodated
• Proximity to neighbours and potential community impact
• Whether planning permission is required and obtainable
• The property must be ready and furnished before the Ofsted application can be submitted​
• The property must meet fire safety, health and safety, and accessibility standards
• Ofsted cannot register a home until all necessary planning permissions are evidenced
• For supported accommodation: whether the property works as a shared or self-contained setting for semi-independent young people (shared kitchen, individual bedrooms, communal space), and whether any HMO licensing applies if five or more young people will share.

Care staff working in children’s homes should hold or be working towards the Level 3 Diploma for Residential Childcare. A minimum of 80% of care staff should hold this qualification or an equivalent. The Registered Manager requires the Level 5 Diploma in Leadership and Management for Residential Childcare.

For supported accommodation, there are no mandatory minimum qualifications for support staff. However, staff must have the knowledge, skills and experience appropriate to meeting the needs of 16–17-year-olds, including safeguarding, health and safety, supporting independence and emotional wellbeing. The Registered Service Manager must have worked for at least 2 years within the last 5 years in a role relevant to the residential support of children or adults.

All staff who carry out regulated activity with children and regulated activity with 16–17-year-olds, require an Enhanced DBS check with barred list information. This applies to care workers, managers, the Responsible Individual, and anyone working directly with children in the home. DBS certificates should be considered alongside other relevant information to determine suitability.

The Children’s Homes (England) Regulations 2015 do not prescribe specific numerical staff-to-child ratios. Instead, staffing levels must be planned to meet the needs of the children accommodated and respond flexibly to unexpected events. Contingency plans should be prepared for staffing shortfalls, and if only one member of staff may be on duty, a formal risk assessment must be recorded. Most homes operate with a minimum of two staff on sleep-in duty during the night.

Supported accommodation also does not prescribe fixed staffing ratios. Staffing must be sufficient to meet the needs and risks of the young people accommodated, including appropriate on-call and emergency cover. Given the semi-independent nature of SA, on-site staffing levels are typically lower than in a children’s home, but providers must be able to demonstrate that young people are kept safe at all times.

Regulation 44 of the Children’s Homes (England) Regulations 2015 requires the registered provider to ensure that an independent person visits the children’s home at least once each month. These visits provide impartial oversight to ensure children receive high-quality care in a safe environment.

During each visit, the independent person:

• Interviews children, their parents, relatives, and staff (with consent)
• Inspects the premises and the home’s records
• Assesses safeguarding practices and how well the home promotes children’s well-being
• Produces a written report with their findings and opinions

The independent person must provide a copy of their report to:

• Ofsted (HMCI)
• The local authority for the area (upon request)
• The placing authorities of children accommodated
• The registered provider and registered manager
• The Responsible Individual (if one is nominated)

Yes. The legislation explicitly states that visits by the independent person may be unannounced. This ensures an accurate representation of daily operations. Visits typically last between 2.5 and 4 hours.

Ofsted inspects children’s homes at least twice per year under the Social Care Common Inspection Framework (SCCIF). Additional visits may occur to follow up on concerns or if information raises questions about the provider’s fitness.

For supported accommodation, Ofsted uses the same Social Care Common Inspection Framework (SCCIF). Inspections of supported accommodation began in September 2024. As with children’s homes, additional visits may occur if concerns are raised.

The Statement of Purpose is a core document that sets out what the service intends to achieve, why it exists, and what it offers. It includes information about the type of care provided, the number and needs of children to be accommodated, the staffing structure, and the organisational ethos. It must be kept up to date and is used by Ofsted as a benchmark for assessing the home’s performance.

Supported accommodation providers are also required to have a Statement of Purpose. It serves the same function, setting out the service’s ethos, model of support, the type of young people accommodated, and the staffing structure and must be kept up to date and submitted as part of the Ofsted registration application.

Ofsted monitors compliance through inspections, follow-up visits, additional checks (including DBS), and evaluation of information provided by the provider. A poor inspection report can impact the likelihood of receiving referrals from placing local authorities. In serious cases, Ofsted may take enforcement action, including suspending or cancelling registration.

The largest ongoing cost is staffing, which typically represents 70–80% of total operating expenditure. Other ongoing costs include:

• Annual Ofsted fees (from £4,492)​
• Property mortgage or rental payments
• Utilities, food, and household expenses
• Insurance (public liability, employer’s liability, professional indemnity)
• Training and continuing professional development
• Vehicle running costs
• Regulation 44 independent visitor fees
• Maintenance and repairs

For supported accommodation, the main ongoing costs are broadly similar, staffing remains the largest expenditure. However, SA providers typically operate with a different staffing model (lower on-site hours, on-call arrangements rather than 24/7 sleep-ins), which can reduce staffing costs compared to a children’s home. Annual Ofsted fees, property costs, training, insurance, and Regulation 32 quality review costs should all be budgeted for.

Children’s homes receive income primarily through placement fees paid by local authorities for each child accommodated. Weekly fees vary widely depending on the level of care provided, the complexity of children’s needs, and the local authority involved. Providers should research demand in their proposed geographic area before committing to opening a home.

Supported accommodation is also funded primarily through placement fees paid by local authorities for each young person accommodated. Fee levels vary depending on the level of support provided, the young person’s needs, and the local authority. Providers should research local demand and LA commissioning intentions before committing to a service model.

Common issues for both children’s home and supported accommodation include:

• Discrepancies or errors in the application documentation
• Incomplete applications submitted before all supporting documents are ready
• Changes to the Registered Manager or RI during the application process
• The property not being ready, furnished, or having outstanding planning permission
• Insufficient demonstration of knowledge, experience, or fitness during interviews
• Lack of a robust business plan or financial forecast

For Children’s home, Key documents required for registration include:

• Completed SC1 application form with all supporting documents
• Statement of Purpose and Children’s Guide
• Locality risk assessment
• Business plan and financial forecast
• Mandatory policies and procedures (safeguarding, complaints, behaviour management, etc.)
• Staff handbook
• DBS checks, references, and employment histories for all key personnel
• GP health declarations for the RI and Registered Manager
• Proof of property suitability and planning permission (if required)

For supported accommodation, key documents required include:

• Completed SC1 and SC2 application forms
• Statement of Purpose and Young Person’s Guide
• Location risk assessment
• Safeguarding policy
• Complaints policy
• Missing child policy
• Behaviour management policy
• Emergency contingency plan
• Equalities policy
• DBS checks, references and employment histories for key personnel
• Proof of property suitability and planning permission (if required)

It is possible in some circumstances for one Registered Manager to manage more than one children’s home, but Ofsted will carefully assess this based on the Statement of Purpose, the number and needs of children, the distance between homes, and the suitability of management and delegation arrangements.

For supported accommodation, the equivalent role is the Registered Service Manager (RSM). Each registered SA service must have one RSM, though job-sharing arrangements are permitted. The RSM is accountable for all settings within the provider’s SA undertaking. There is no limit on the number of premises they can oversee, but they must demonstrate effective oversight across all settings.

All regulations are set out in the Children’s Homes (England) Regulations 2015.