Ofsted’s latest annual report reveals both inspiring work across early years, schools, children’s social care and further education, and stark challenges for the most vulnerable children.
While many young people enjoy a smooth path to adulthood, those growing up in care or facing disadvantage continue to encounter significant barriers.
The report warns that outcomes for children in care remain far poorer than their peers, due to a lack of coordinated support across education, care, and wider services. Despite a 15% rise in children’s home registrations, bringing the total to over 4,000 – the highest on record, serious issues persist around location, affordability, and suitability. More than a quarter of homes are in the North West, which accounts for just 18% of looked-after children, raising concerns about profit-driven motives distorting the system.
Local authorities still struggle to place children with complex needs, fuelling the growth of unregistered homes. Ofsted launched nearly 900 investigations into such settings this year, many charging exorbitant fees because legitimate homes lack capacity for specialist support.
In education, the report highlights persistent attainment gaps between disadvantaged and non-disadvantaged pupils, compounded by poor access to quality early education in deprived areas. Severe absence has tripled since the pandemic, with 166,000 pupils missing half or more of their schooling, disproportionately affecting vulnerable children.
Behaviour remains a major concern, with permanent exclusions at a record high and suspensions up by 20%, nearing one million. Four in ten exclusions and half of suspensions stem from persistent disruptive behaviour, disproportionately impacting disadvantaged pupils, who are five times more likely to be excluded. Social media and smartphones are cited as contributing factors, affecting attention spans and attitudes.
Sir Martyn Oliver, His Majesty’s Chief Inspector, said:
“Inclusion matters. It matters because addressing the needs of the most vulnerable and disadvantaged children demands a rigour and attention to detail that ultimately benefits all the children, pupils or learners in that setting – from those facing the greatest barriers, to those whose path to adulthood is more straightforward.
“As a country, we should measure our successes in education, children’s services and skills, both by how well we support the most economically disadvantaged and vulnerable, and by how much further we can push forward the boundaries of knowledge through higher learning. We have a duty to improve the lives and life chances of every child and every learner.
“The dedicated staff working in education and children’s social care are helping children and older learners achieve their potential – day by day and week by week. I would like to thank them all.”

Under Ofsted’s renewed education inspection framework, introduced in November, inspectors will focus on inclusion, assessing how schools support children facing the greatest barriers, including those with SEND and those known to social care.
The report calls for urgent action to address these systemic issues and ensure every child, regardless of background, can thrive.
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