Opening a children’s home can be incredibly rewarding; you know you are actively changing the lives of young people. With that being said, the process beforehand can be lengthy and expensive. So, how much does it cost to open a children’s home?
The typical cost of opening a children’s home, property aside, is upwards of £150,000. This includes factors such as:
- Staff salaries
- Mortgage/rental costs
- Database setup fees and running costs
- Advertising and HR costs
- Furniture costs
- Insurance
- Training
Keep reading to find out more about the cost of opening a children’s home as well as what qualifications you need in order to do so.
What is the Cost of Opening a Children’s Home?
Opening up a children’s home requires a lot of planning and is anything but straightforward. Not only is it time intensive, but it also requires a substantial amount of initial capital. Property aside, our experience has shown that it typically costs at least £150,000 for the start-up phase of opening a children’s home.
There are many variables that can significantly impact how much money is needed to open up a children’s home. Some of these factors include:
- Salaries of key personnel
- How many young people the home will accommodate
- Staffing levels
- Mortgage/rental costs
- Refurbishment and furniture costs
- Vehicle costs
Due to the amount of variables involved in setting up a children’s home, it is important to put together a thorough cash flow forecast. This will help you for the road ahead, whilst also demonstrating to Ofsted that you know and understand the ongoing operational costs. A good cash flow forecast takes into account all major costs and includes key aspects such as expected occupancy levels and having a staggered intake of young people.
When we support our clients, we complete their cash flow forecast with them so it’s tailored to their home and individual situation. It can then be used to help secure funding (if applicable) and be submitted to Ofsted as part of the home’s application to get registered.
What Qualifications Do You Need to Open a Children’s Home?
As a director of a children’s home, having qualifications relevant to children’s homes or a background in social care is not a compulsory requirement. However, to create a positive culture within the organisation, it’s preferable that directors have involvement and are passionate about changing the lives of young people.
As a director you don’t necessarily need to be DBS checked, but you will need to complete an SC2 form. More information about what Ofsted will need from you can be found here: Apply to be connected with a children’s social care service (SC2) – GOV.UK
What Qualifications Does a Responsible Individual Need?
A ‘responsible Individual’ is the figurehead of the organisation. They must have managerial oversight of the home and represent the organisation to Ofsted. Whilst the Responsible Individual does have a fit person’s interview, they are not registered with Ofsted.
Ideally, the responsible individual would have previously held a managerial position in a children’s home, as this means they should have a good idea of how one operates. Caution should be applied if you are thinking of putting forward a candidate without such experience. A responsible individual should have an array of qualifications and trainings that make it clear to the regulator that they are both experienced and competent.
What Qualifications Does a Registered Manager Require?
The registered manager is responsible for the day-to-day running of the home and should be readily accessible to the staff and young people. The registered manager also has a fit person’s interview and, unlike the responsible individual, does get registered with Ofsted. Ideally, the registered manager would have held a managerial position in a children’s home previously, and they need to meet Ofsted’s criteria of having worked for at least 2 out of the last 5 years in a role that is relevant to the residential care of children.
Providers should not put forward candidates without such experience. A registered manager needs to have attained their Level 5 Diploma in Leadership and Management for Residential Childcare by the relevant date (as stipulated in Regulation 28 of the Children’s Homes (England) Regulations 2015).
How Long Does it Take to Register a Children’s Home with Ofsted?
Registering a children’s home with Ofsted can be a lengthy process. Even in cases where the provider has a suitable house, there are many key hurdles to negotiate. Some of the most significant include:
- Obtaining planning permission or a certificate of lawfulness
- Assessing the suitability of the wider area (location risk assessment)
- Recruiting staff
- Completing the registration paperwork
After you have successfully recruited and put your registration paperwork together, you will be in a position to submit your Ofsted application. The wait to get registered can be a lengthy one, and so patience will likely be required. The average time it takes Ofsted to register a children’s home from accepting the application to granting registration is around 17 weeks. However, there are a number of things that are well-known for delaying applications, so we have detailed them for you below.
1. Inaccuracies in Documentation
All the documentation you submit needs to be accurate, up-to-date, and bespoke to your children’s home. If errors are found in the documentation, it doesn’t paint a good picture of the organisation, and a revised version of the form or document may be requested.
2. Change in Person Making the Application
Another common reason for applications being delayed is when a person who is part of the application changes. For example, a responsible individual. The reason this delays the process is that a new person must be appointed and fill out the necessary forms before Ofsted can review their application and proceed with any further checks.
3. Issues with Property of Planning
Whilst you can make your children’s home application before the property is fully ready to admit children, there cannot be any outstanding planning or building issues by the time Ofsted reaches stage 3 of the application.
4. Document Sizes Too Big
Any documentation submitted to Ofsted goes through their online system. Documents that are too large may not be processed and lead to a delay. It is advised to send Word documents without images, as this is what makes the files too big. If you find you cannot make your document small enough, you can simply make a note on the document and email it separately to Ofsted’s admin email address: sc.admin@ofsted.gov.uk
5. Information Not Aligning with Companies House
One of the most common reasons for delays in children’s home applications is that the information provided about the organisation is not aligned with that on Companies House. Taking extra care to ensure this is accurate is going to make a difference to how quickly your application is accepted and processed.
Opening a Children’s Home with Changing Outcomes
Changing Outcomes specialise in opening up children’s homes, and each project is overseen by our founder and operations director, Andrew Roberts. We have supported a vast number of clients to successfully open children’s homes and will be on hand to guide and advise you right up until the point of registration.
Opening up a children’s home requires doing the right things at the right time and needs a lot of project management. Our experience in opening up homes has allowed us to refine the registration process to make it as smooth and efficient as possible. To have an informal chat and start the ball rolling, feel free to reach out.
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