This article notes how Ofsted’s annual report reveals that nine in ten councils in England are placing children in unregistered care homes, some charging up to £30,000 per week, due to a lack of available registered placements despite a record 4,010 children’s homes nationwide. The report highlights a mismatch between the location of care homes and local demand, a strong profit motive, and the growth of a shadow market of illegal homes, with Ofsted launching 870 investigations last year. Costs for councils have more than doubled in less than a decade, creating a funding crisis that limits early intervention and care options. Experts and authorities warn that the system is failing the most vulnerable children, calling for government-led reforms, better planning, and strengthened oversight to ensure children are placed safely and appropriately.