The Property - Identify and Enquire
– Identify Property
– Can you get planning permission?
– Can you get insurance
Children’s home providers and managers must meet a range of legal requirements; this includes a requirement to register with Ofsted. If you want to apply to open a children’s home, you should also read Ofsted’s ‘Guide to registration for children’s social care services’, which sets out the process of registration for all children’s social care providers.
In summary, a children’s home must have:
- A registered provider and, where the provider is an organisation such as a company, a person known as a ‘Responsible Individual’ who represents the organisation to Ofsted.
- A qualified (QCF Level 5 children and young people) Registered Manager who has their own personal registration with Ofsted.
- A Statement of Purpose that sets out the overall aims of the children’s home and the objectives for children who live there or those provided with short breaks – the law sets out the information that the statement must contain in regulations; you can find these in schedule 1 of ‘the Children’s Homes (England) Regulations 2015.’
- A Children’s Guide, which explains what a child can expect from the home’s care, including the support each child is entitled to, how they can make a complaint and how they can access advocacy support; the guide must be in a form that is appropriate to the age, understanding and communication needs of the children
- A number of policies and procedures – these are set out in the Children’s Homes (England) Regulations 2015.
- An appropriate/suitably equipped and furnished property, with planning consent to operate as a children’s home.
- Ofsted will also undertake financial viability checks on the provider including bank references, business plan and financial forecast.
Ofsted registration process can take up to 16 weeks.
Once the application has been submitted:
1. A site visit is undertaken – is the property fit for purpose?:
- Property must relevant planning consents
- Property must be fully furnished (ready to admit children/young people)
- All health and safety requirements must have been fulfilled with appropriate certification provided including fire doors and fire alarms
- All fire certification met/signed off
- All PAT Testing to have been completed
- Appropriate insurances must in place
- Premises must clean and tidy – including gardens.
- Floor plan of the home needs to be created
- During the visit, inspector will also look at:
- policies and procedures
- some staff recruitment files
- certification
- staff rota’s
- Training matrix
2. ‘Fit Person’s interviews’ (Manager and Responsible Individual):
A set of questions is completed and then formal interviews held. During the interview process previous work history/inspections will be discussed in detail, as well as understanding of practice (including SOP), policies, procedures and regulations.
A note of caution:
- If you are new to the sector – seek expert advice from the outset; there are many experienced consultants in the sector; it will save you time, money and heartache.
- Makes sure the property is the right size, in the right location and get the planning consent.
- Budget well: you will need between £60k to £100k for the setup costs (depending on the size of the home).
- Do not take the risk with hiring an inexperienced manager; they will not get through the Ofsted interview process.
- This is not a short-term business with quick returns, it is a long-term investment which requires long term financial commitment. Talk to other small providers.
- Be realistic about your expectations.
- Once you have the property, recruit your manager; they will help set everything up thereafter.
Support from Kayn Consultants
We can assist with a full or part support in the registration process:
| Service |
|---|
| Initial site visit / consultancy: to look at the suitability of the property home; with report/ action plan. |
| Reviewing key paperwork: – Statement of purpose – Children’s guide – Locality risk assessment – Business plan – Financial forecast – Mandatory policies and procedures – Staff handbook (If you do not have the above – we can produce these for you). |
| Manager and Responsible Individual recruitment – advice and support, including: – Reparation of job specification – Preparation of interview questions and scoring sheets – Shortlisting – Preparation of offer letter – Safer recruitment checks – Support with employment contract |
| Attendance at interview |
| Advice and support pre-submission of Ofsted registration application. – Include review of application form |
| Pre-registration inspection visit audit; this held before Ofsted inspector is due to visit the home. |
| Review and support with Fit Person Questionnaire and Interview |
| Placement and referrals: – Guide to website development – Advice on marketing material – Advice generating referrals – Guidance on E-Marketing – Guide to placement portals and networks |
| Supervision of RI and/or Registered Manager |
Example Timeline of setting up a Children’s Home
GUIDE TO PLANNING PERMISSION FOR CHILDREN’S HOMES
The Town and Country Planning (Use Classes) (Amendment) Order 2005 (amended further in 2010) distinguishes a range of uses of buildings and specifically permits changes of use from one use to another within individual classes. Where activity results in a material change of use of a building to a use falling within a different use class then planning permission will be required to authorise that change of use. Depending on the circumstances of each case, a children’s home will fall into either a C2 or C3 use classification.
Classification
Use Class C2 (Residential Institutions) of the above Order reads as follows:
- Use for the provision of residential accommodation and care to people in need of care (other than a use within class C3 (dwelling houses).
- Use as a hospital or nursing home.
- Use as a residential school, college or training centre.
- Use Class C3 (Dwelling houses) reads as follows: Use as a dwelling house (whether or not as a sole or main residence) by —
- a single person or by people to be regarded as forming a single household;
- not more than six residents living together as a single household where care is provided for residents;
- or not more than six residents living together as a single household where no care is provided to residents (other than a use within Class C4).
A material change of use from class C3 to C2 amounts to development requiring planning permission. There is therefore a potential requirement for planning permission to use a dwelling house as a children’s home.
Legalities
The starting point is to first establish as a matter of fact and degree, whether such a use would constitute a change of use from C3 to C2.
The issue largely centres on whether or not the children are in themselves capable of living together as a single household.
Class C3 (b) of the Town and Country Planning (Use Classes) Order as amended refers to “use as a dwelling house by not more than six residents living together as a single household, (including a household where care is provided for residents).” If a children’s home was being run on this basis, with children being looked after by a permanent occupant of the dwelling, there would be no requirement for planning permission.
However, the matter is less clear when the care is based on shift patterns. In the North Devon District Council [2003] case Justice Collins made the point that children “need to be looked after. They cannot run a house. They cannot be expected to deal with all the matters that go to running a home … children are regarded as needing fulltime care from an adult, someone to look after them, someone to run their lives for them and someone to make sure that the household operates as it should.” The North Devon judgement confirms that it is unrealistic to expect children to look after themselves in a single household. It also clarified that carers who provided 24 hour care but were not resident could not be regarded as living together in a household.
The concept of living together as a household means that a proper functioning household must exist and children and carer must reside in the premises. In such circumstances, the use cannot therefore be considered to fall within Class C3 (b). A children’s home run on shift patterns could not be considered to fall within Class C3 (a), because clearly, this is not occupation of a dwelling house by a single person or people living together as a family.
Children’s homes based on shift patterns would not be considered to fall into these criteria either. Following an assessment of case law and an Inspector’s decision of 2010 at Stockport, use of premises as a children’s home will generally be held to fall within Class C2 of the Order (Residential institutions).
Planning Permission
If planning permission is required, what are the issues?
- The key issues relate to the impact on the amenity of nearby occupiers. Relevant factors will include the movements to and from the premises associated with such a use, including shift patterns, the need for visitors on a regular basis (including the emergency services).
- The internal fitting out of the premises with fire alarms, lockable doors etc would also be factors suggesting that a material change of use may have taken place.
- If the premises in question provides for sufficient parking, outdoor space and the amenity effects on neighbouring dwellings are capable of being mitigated, it is the case that these developments would normally be appropriate uses, in planning terms, in residential areas.
- Similarly, if the surrounding area is not mainly characterised by single family dwellings, it may well be the case that such a use could continue with little quantifiable impact subject to there being no increased concerns in other areas such as to highway safety. Conclusions The issue of whether or not a material change of use has occurred will ultimately be a matter of fact and degree in each individual case.
The key issues are however the numbers of residents involved, whether or not staff work shift patterns or have a permanent residence at the site and the materiality in planning terms of any change of use. The starting point will be to consider:
- The number of residents involved and how the operation is to be conducted, for example whether or not staff are employed and if shift patterns are in operation or whether staff are permanently resident. If the number of residents is not more than six and the staff live in full time then this is consistent with a C3 use.
- By contrast, where the staff working shift patterns and are not full-time residents this is consistent with C2 use.
Ultimately it will remain a matter of planning judgement but this should be the start of a sequence of considerations to help establish whether or not a change in the character of a dwelling-house has occurred, for example, through increased coming and goings and disturbance.
Check list for registering a children’s home
Check List:
- Application form SC1 (Provider completes).
- The documents listed in the appendix for each relevant individual connected to your application.
- Statement of purpose.
- Location risk assessment.
- Children’s guide.
- Application fee.
- Copy of a certificate of insurance or written confirmation that insurance will be provided, for example a letter of intention and a quote for the provision of insurance.
- Copy of planning permission granted, a certificate of lawfulness, a copy of a planning application or evidence that planning permission is not required.
- Financial Bank reference.
- Business plan.
- Cash-flow forecast.
- Last two annual reports, including, where applicable, reports for the holding company and subsidiaries for that holding company.
- Last two annual accounts or Bank reference.
- Missing child policy.
- Accident and missing resident procedure.
- Safeguarding policy.
- Behaviour management policy (including restraint).
- Prevention of bullying policy.
- Complaint’s procedure.
- Equalities policy.
Fitness of Property (once you have obtained planning/exemption from planning):
- Property must meet ‘fire regulations’ – get a fire risk assessment completed.
- Health and safety Risk assessment.
- Legionellae’s assessment and certificate.
- PAT testing on electrical items.
- Gas safe certificate.
- Electrical certificate.
- Asbestos survey to be undertaken.
- Proof of lease (3 to 5 minimum) / If you own the property proof to show that it can operate as Childrens’ home from the lender.
- Fire alarm to be fitted and signed off.
- You may want to consider fitting door alarms to children’s bedrooms.
- The property must be fully furnished.
Appendix
- Declaration and consent form (SC2).
- Enhanced Disclosure and Barring Service certificate.
- Health declaration booklet.
- Fit person questionnaire (this is not required as part of your initial application, your inspector will request this).
Frequently Asked Questions
What makes a good property for a children’s home?
This is dependent on the size of the children’s home you want to open. As a new provider, we would recommend no more than a ‘three to four bedded children’s home’. This would mean you will need a minimum of 4 to 5 bed property. Ideally with a kitchen/diner or separate dining room, a good size lounge and another room for staff office. Having two bathrooms is also advantageous. Property needs a good-sized garden to the rear and ample parking for staff or visitor vehicles (parking should not be on the road).
Where should I locate my children’s home?
One of the key factors to consider when locating your property/children’s home is STAFFING. The ability to recruit an experienced and qualified registered manager and staff team is vital to your future success. Further considerations, need to be:
- The type of young person you want to care for (EBD, LD, Complex Health needs etc.)
- Whether it’s a city or rural location you initially want
- Property prices; whether you are buying or leasing
- Level of competition – other children’s homes
- Where your placements will come from.
Do I need planning permission even if I only want a 3-bed provision?
The simple answer is YES.
Ofsted ask for proof of planning consent, or evidence showing you do not need it, this normally a letter from the planning officer.
What is the minimum period of the lease required?
You should look at a minimum of 5 to 10 years (with appropriate break clauses). Ofsted would have concerns for shorter leases. Don’t forget you are building a stable long-term future for the children and young people, some of whom may be with you for a number of years. Please get legal advice on all lease arrangements. Generally, leases tend to be full maintaining leases.
Can I register more than one home under the same manager?
There is a new ruling which came out in 2021; that allows you to register up to 6 beds in more than one property at the same time under one manager. The properties must be registered together or specific request to Ofsted can be made if registration is separate. The risk of course is, if one property gets declined registration, they all will. Secondly, finding a manager to undertake multiple registration will be extremely difficult, given the national shortage of residential managers.
What happens if I own the property?
If you own the property, and want to set it up to be Childrens home:
- If there is no mortgage, it straight forwards lease agreement with the children’s home company, so you will act as the landlord and the children’s home company will be the tenant.
- If there is a mortgage, Ofsted will want to see the mortgage terms and conditions, which need to stipulate that you have consent to let from the lender to ‘company’ namely, the children’s home. A word of caution; buy to let mortgages, HMO mortgages and residential mortgages, will NOT allow you to let to a company. Consent must be sought from the lender beforehand.
What are the stages of Ofsted Application and Registration process?
Four stages for registration, takes up to 16 weeks:
Stage 1 – Ofsted SC1 (Provider) and SC2 (Manager and Responsible Individual) application submissions
Stage 2: – Verification process;
- Provider – Application, ID’s, address check, DBS, employment references, local authority checks, health declaration, credit check and financial viability checks.
- Manager and RI; Application, ID’s, address check, DBS, employment references, local authority checks, health declaration, and credit check.
Stage 3 – Property inspection and Interview of Manager and RI.
Stage 4 – Decision time (within 28 days).
What staffing structure will I need for opening my home?
This will be dependent on the Registered Manager and RI you employ. They will bring their current rota systems and shift patterns with them to deploy in your home. Secondly, it will be dependent on the nature of young person you will be looking after and the availability of sleeping in rooms for staff within the property. As a provider, discuss different shift patterns / rota’s, make sure you can afford it in salaries; work out the cost/benefit implications beforehand.
What are the typical rates of pay for Responsible Individual, Registered Manager and Residential Support Workers?
In recent times, management costs have become very expensive:
- Responsible Individual – if on a day rate (part time consultancy basis) around £350 to £600 per day. If employed £45k to £60k.
- Registered Manager – depending on where you are in the country and on the size of the provision – £45k to £55k.
- RSW – if qualified and experienced £24k pa; unqualified £20k. Again, this depends on location and size of home.
Where do I advertise for my job vacancy?
- For RI’s and Managers – advertising on Indeed and another job portals generally do not work but you could try it. You have to go to one or more specialist recruitment agencies:
You talk about needing £100k to setup a children’s home; is this right?
Yes.
The £100k can be broken into the following areas (assuming you have a property with planning permission):
- Up to £20k – to undertake health and safety and fire safety work; including fire doors / frames, fire alarm, smoke alarm etc.
- Up to £20k – to furnish the property
- Up to £30k – for salaries (for manager and RI) / professional fees including Ofsted fee / training during the registration process
- Up to £10k – for systems / IT equipment / contracts
- Up to £20k – contingency monies (insurances, vehicle, unforeseen expenses).
Don’t forget you will also need up to £35k to cover your first month’s expenses/salaries, once you get registration; since local authorities pay 30 days in arrears.
I hear people are making ridiculous amounts of money from children’s homes, is this right?
As with any business, it is a lot of hard work and commitment. There is no such thing as easy money in any business and this certainly true in children’s residential care. The fee for placement set by your business is going to depend on the nature of young person you place in the home and the skill set of your manager and staff team. THIS IS NOT A QUICK RICH BUSINESS. If money is the sole motivation for opening this business, please do not come into it. We are dealing with young people’s lives, who through no fault of their own, end up in care. If you want to make a real difference, this may be for you. It is a long-term commitment and not for the faint hearted.
Do I need a background in care or social work to open a children’s home?
No.
We work with people from all walks of life, including Lawyers, Doctors, Pharmacist, Property Developers, Retailers and Investors. The one thing they all have in common, is the commitment to make a real difference to the lives of young people.
What training do I need to book for staff before I open?
All mandatory training must be in place for staff before your doors open to take placements. And for that matter, you must have recruited a staff team for at least one child to be placed in the home; who must be trained and inducted prior to Ofsted coming out to inspect your home. Some training courses have to be done face to face including safeguarding, restraint, fire safety, ligature etc. other training can be done online. You do not need to worry about this, this is something your manager and RI will sort out.
If I am recruiting experienced care staff; what qualifications do they need to have?
- Manager – Level 5 in Leadership and Management
- Care Staff – NVQ / QFC level 3 or 4 Diploma Children and Young People Work Force
Be careful to check the qualifications of those who say they have the equivalent qualification; make sure you check this with reputable training provider. Your staff files will be checked in detail by Ofsted.
What documents will Ofsted ask for when they are ready to inspect the property and undertake interviews?
- SOP
- Children’s guide
- LRA
- Staff Rota
- Training matrix
- Copy of lease / Property title deeds
- C2 Planning permission
- All health and safety and fire documentation
- Insurance certificate
- Staff recruitment files
- Financial forecast
- Business plan
- Legionella’s report
- Asbestos survey / report
- Bank reference
- Mandatory Policies
What is the situation of having CCTV on the premises?
External it is permissible – however, your policy for CCTV must be robust.
What IT equipment will I need in the home?
You will need PC’s/laptops for staff (up to 4) and PCr/laptop for young people (to undertake educational work on). Use an IT company, they will also network the system for you, source appropriate equipment and make sure all safety protection elements are setup. As well getting you the right licenses for the software i.e. Microsoft.
What insurance requirement will I need and when should the insurance start?
You will need specialist insurance for running a children’s home. There are a number of companies and brokers out there; we work with at least 3. All our clients will be provided with a list to get a quote.
Do I need to allocate a room for education in the home?
Ideally Yes.
If you are looking at the whole of the market for your referrals and placements. Not all your children will come from the host local authority your home is based in but further afield. Generally, it will take a few weeks for them to get an education place. During this period some form of education must be provided to the young person; up to 16 hours per week. We generally talk about a 12-week period; where a tutor will come to the home to provide some level of educational input and this is funded by the local authority virtual school. Young People also like to use it to support their personal studies or getting help from staff members around education.
I’m a qualified social worker – can I be the manager or responsible individual of my home?
- For a Registered Manager, it is a must they have a Level 5 qualification in leadership and management or be working towards it; and at least 2 years’ experience working within a children’s home or equivalent, and at least one of these 2 years in a supervisory or management role.
- For a Responsible Individual – experience and knowledge of the children’s home operation and sector, an understanding of the regulations and standards. The RI will have oversight of the home and supervise the manager; therefore, they must have knowledge and understanding of processes and procedures involved in running a children’s home.
Individuals that lack experience and knowledge, will not make it through the Ofsted interview process.
Are there children home management software’s we can buy?
Yes, there are number of these on the market. They will charge a one-off fee for each home and an on-going monthly fee. Why use them? Simple, because everything is recorded online, you will have access to it and can make sure things are being done. It also reduces your business risk, should you need to get part with a member of staff or manager; and therefore, you are not tied to their paper systems.
Where do we go for our HR and Health Safety support?
You will need HR / employment support, including, employment contracts, staff policy dveleopmenet / handbook and on-going support for HR issues. A number of companies specialize in the children’s home sector, it may be worth talking to them. They tend to charge a monthly fee.