Home truths
Children in care , Issue 1636 BUSINESSMAN Daljit Johal may have hoped to dodge publicity over a recent damning Ofsted report into his privately run children’s home in Essex. Unluckily, however, his headline-attracting dodgy landlord is none other than Labour MP for Ilford South Jas Athwal.

Among companies extracting vast profit from the open market in children’s social care, critical reports from Ofsted do little to stem the millions flowing from local authorities desperate to find placements for vulnerable children.

But an accidental discovery by a journalist for online magazine the Londoner – who peeked through the blinds of an unmarked property registered to Athwal and thus learned of the substandard care being provided there to youngsters – has thrust the industry’s failings into the spotlight.

Ignorance is bliss
Last month, self-proclaimed “renters’ champion” Athwal protested his ignorance of the fact that some of his 18 properties were infested with hazardous black mould and insects and had no working fire alarms (Eye 1632).

And recently Athwal insisted he had no idea one of those properties housed a residential home for children run by Heartwood Care (which Johal owns with a relative), where Ofsted reports since 2019 have found serious failures, including bullying that “culminated in a child being stabbed”, shabby furniture, broken windows, concerns around criminal exploitation and staff unable to keep a frequently absconding child safe.

In another apparent lapse, Athwal claimed he didn’t know Johal so was not obliged to declare his conflict of interest when, as leader of Redbridge council before becoming an MP, his authority reportedly paid eye-watering sums to place youngsters in Johal’s company’s care. Interactions between the two men on Facebook – Johal referring to Athwal as “The Don” – suggest otherwise.

Telling responses
Commenting on the revelations about the children’s home, prime minister Keir Starmer said such responsibilities should be taken “seriously”. Athwal, however, merely issued a legal warning to the online newspaper that broke the story.

Johal, for his part, said the home had been rated “good” but suffered staffing issues. Yet Johal runs ten children’s homes, four of them rated “requires improvement”, one “inadequate”, three “good” (two having been recently upgraded) and two so far unrated. None was “outstanding”.

Ofsted’s concerns across the estate included sexual activity between children, a girl going missing with an older man, failure to vet or do criminal checks on staff, and inadequate management.

A Heartwood spokesperson said improvements required by Ofsted for the “inadequate” home had been implemented, adding: “Over the past decade, the homes... consistently maintained a good rating. However, following the Covid-19 pandemic, the sector faced widespread recruitment challenges.”

Wider problem
Substandard homes for vulnerable youngsters are no rarity across England: one in five is rated “requires improvement” or “inadequate”.

Private companies run 83 percent of homes in England, up 70 percent in just five years. Relinquishing control of this market to the commercial sector has seen venture capitalists extract profits of up to 23 percent a year, charging an average of more than £5,000 per week per child and bleeding local authority budgets.

Much of the money made by the biggest providers flows abroad via shell companies and offshore bank accounts. And far from driving standards up to serve children’s needs better, homes often open in areas where property is cheapest, forcing social workers to move young people far from support networks, disrupting education and healthcare plans.

While Wales is moving towards a not-for-profit system and Scotland removed the profit element years ago, Westminster has shown no interest in doing the same in England, despite calls from campaigners.