Children’s Services UK Market Report Seventh Edition
Navigating supply and demand in children’s services
As demand for children’s social care and special education continues to rise, LaingBuisson’s latest edition delivers essential insights for children's services providers, investors, policymakers, and local authorities. Explore changes in supply against a backdrop of funding pressure, capacity constraints, policy reform, and increasing high-needs demand across the special education, residential care, fostering, and adoption sectors.


Seventh Edition
Children's Services UK Market Report
Proudly sponsored by JLL and NinePoints Property
Authored by Tim Read | Published: 2nd July 2025 | pp. 283
The seventh edition of LaingBuisson’s Children’s Services UK Market Report is essential reading for anyone involved in this important area of the UK’s social care system now valued at £26.84 billion. Written and researched by leading sector expert Tim Read, this definitive report offers comprehensive and independent insight into all areas of the children’s services market, with detailed coverage of special education and social care services for children and young people. This report also offers insights into changing market behaviour by providers, including shifts away from multi-sector provision into single segment specialisation and exploration of new areas for revenue growth.
Since the last edition was published in 2022, the report reveals a market that has grown significantly, which we previously reported was at £17.1 billion.Value growth has been underpinned through increasing volumes of Education, Health and Care Plans (EHCPs) and challenged in reducing the number of children placed in residential care homes. While pressures on public sector budgets remain, demand-led statutory obligations have sustained service volumes and, in turn, market revenues.
In the special education market segment, now valued at £8.67 billion, the volume of children being placed in independent special schools continues to rise dramatically, with the number rising consistently by above 10% for the previous five years.
Our Children in Care chapters, mainly covering Children’s Residential Care and Foster Care, reveal a sub-sector now valued at £18.18 billion. Our report indentifies a clear division in market growth between these sectors and details long-term supply trends across public and independent providers to meet rising demand.
The report also explores the current political and regulatory landscape, including Labour’s proposed reforms to children’s social care currently progressing through Parliament. This changing policy environment could have implications for service commissioning, provider behaviour and future investment strategies.
- Children’s residential care providers
- Foster care and adoption agencies
- Special education providers (schools and colleges)
- Leaving care and supported living providers
- Local authorities and children’s services commissioners
- Central government departments and policymakers
- Integrated Care Boards (ICBs) and NHS commissioners
- Investors (private equity, infrastructure funds, institutional investors)
- Banks, lenders and financial institutions
- Management consultants and advisory firms
- Legal and regulatory professionals
- Charities and voluntary sector organisations
- Academic researchers and think tanks
- Trade associations and representative bodies
- Auditors and accountancy firms
- Insurance providers with exposure to social care
- Property and real estate developers involved in care infrastructure
- Workforce and recruitment agencies supplying children’s services staff
- Technology providers supporting children’s services operations
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LaingBuisson is the chosen provider of independent sector healthcare market data to the UK Government’s Office for National Statistics.
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Over 100 exclusive tables, graphs, figures and charts covering all aspects of the special education and children in care markets
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Long-term views on supply growth split by key markets
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Long-term view on key demand indicators
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Analysis of past, present and future government policy and regulatory changes
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Overview of key providers and market structure in fostering, adoption, and residential care
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Investment trends and sector transaction
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"Continued growth in the special education and children’s residential care market value is underpinned by challenges in bringing rising volumes under control, with under-pressure commissioners required to fund these statutory services. The government has reform in mind but independent sector services are usually high-quality environments that meet current best practice, so the government should be wary of de-stabilising markets that have few options for alternative supply.”