More than £3.4 million was spent placing children in unregulated accommodation last year by Hampshire County Council due to a shortage of registered care placements, newly released figures show.

A Freedom of Information response  reveals between April 1, 2024 and March 31, 2025, the authority spent £3,422,799 on unregulated placements.

HCC recorded 22 uses of unregulated settings over the period, including four longer-term placements and 18 brief placements involving looked after children.

It also confirmed it does not operate a dedicated quality assurance framework for assessing unregistered providers.

There is currently one child in a longer-term unregulated placement and two in brief placements, according to the response.

Unregulated accommodation refers to settings that are not registered with Ofsted.

In its response, the authority said the use of unregistered placements was “occasionally unavoidable” because severe pressures in the children’s homes sector mean “demand [is] far outstripped by supply”.

The council added that fewer placements are able to accommodate “the increasingly complex needs of children”.

It said unregistered settings account for 1.35 percent of its overall residential placements and that Ofsted is notified whenever such placements are used.

The authority also said children placed in unregulated accommodation are regularly visited and monitored, with efforts made to move them into registered placements “as soon as a suitable alternative is found”.

While the council said it has no formal framework for assessing unregistered providers, it said checks are carried out on safeguarding policies, health and safety documentation, insurance arrangements and Companies House records.

Any concerns are monitored through its quality outcomes and contract monitoring process.

The use of unregulated accommodation for children in care has become a growing national issue, with charities and campaigners warning vulnerable young people can face increased risks when placed outside regulated settings.

The government has faced repeated calls to increase the number of registered placements available for children with complex needs amid continuing shortages across the care sector.

A council spokesperson said: “The use of unregistered placements in these circumstances is occasionally unavoidable and is only done in the most exceptional cases.

“As with all Hampshire children in care, we are in regular contact with any children in unregistered placements and have statutory and local processes in place to promote their welfare.”