Breaking Down the New 2025 Ofsted Fee Increases for Childrens Social Care Providers

The UK government is making changes to how much children’s social care providers pay for their Ofsted inspections. A new legal instrument, officially known as the Registration and Inspection of Education, Children’s Services and Skills (Fees) (England) (Amendment) Regulations 2025, has been introduced to increase these fees by up to 20%. Here’s what you need to know about why this is happening and what it means for providers.

What's Changing?

The new legislation means that many children's social care providers will see their fees to Ofsted go up by as much as 20%. This increase is targeted at providers who aren't currently covering the full cost of their inspections and regulatory oversight. The goal is to move closer to a system where these fees fully cover Ofsted's costs, reducing the financial burden on taxpayers.

Why the Increase?

Since 2010, the government has been gradually increasing fees to align with the actual costs of inspections. Historically, fees have risen by about 10% each year to achieve this goal, but this year’s jump to 20% is a more aggressive step, responding to rising inspection costs and aiming for faster progress towards full cost recovery.

Who Will Be Affected?

The changes apply mainly to providers in England, including children’s homes, fostering agencies, and adoption support agencies, among others. Notably, supported accommodation providers are also included, with the government focusing on quickly aligning their fees with the full cost of regulation.

What About Small Businesses?

While the fee increase affects all providers, regardless of size, the government has taken steps to limit the impact on smaller businesses by capping the increase at 20%. However, there are no specific measures to ease the burden on small businesses beyond this cap.

No Consultation Needed

Interestingly, the government decided not to hold a public consultation on this year’s fee increase. Following last year’s consultation, it was determined that future increases of 20% or less wouldn't require further consultation, streamlining the process.

Looking Ahead

The Department for Education will continue to monitor these changes and assess their impact on the sector. The fees for the year 2026-27 will be reviewed again in a year’s time to determine if further adjustments are needed.

In summary, this fee hike is a significant move towards ensuring that the cost of inspections is met by those being inspected, rather than the taxpayer. For providers, it means budgeting for higher fees but also potentially contributing to a more sustainable inspection system in the long run.