Regulation 47: Financial Position
Regulation 47 financial viability duties for children's homes, plus the separate 2026 financial oversight framework for strategically significant providers and provider groups.
Regulation 47 requires each registered provider to operate the home in a way likely to ensure financial viability and to maintain adequate financial records. Since July 2026, the Care Standards Act 2000 has also contained a separate financial oversight framework for certain non-local-authority providers and provider groups.
As at 14 October 2026, Regulation 47 of the Children's Homes (England) Regulations 2015 remains the core home-level financial viability duty. A separate provider and provider-group financial oversight framework was added to the Care Standards Act 2000 by the Children's Wellbeing and Schools Act 2026. That framework is aimed at non-local-authority providers and provider groups that meet prescribed conditions and are brought within the scheme.
Quick answer: what does Regulation 47 require?
1. Financial viability
Regulation 47 requires the registered provider to carry on the home in a manner likely to ensure that the home will be financially viable for the purpose of achieving the aims and objectives set out in the statement of purpose. This is an ongoing duty, not a one-off requirement at registration.
The duty is linked to the statement of purpose. The financial viability of the home must support the aims and objectives the home has set out. A home that cuts costs in ways that undermine its stated aims and objectives may be failing this duty even if it remains solvent.
2. Financial records
The registered person must ensure that adequate financial records are maintained and kept up to date in respect of the home, and must supply a copy of the financial records and most recent accounts to HMCI at HMCI's request.
HMCI may require information for the purpose of considering the financial viability of the home, including: (a) the annual accounts of the home certified by an accountant; (b) a reference from a bank expressing an opinion as to the registered provider's financial standing; (c) information as to the financing and financial resources of the home and the registered provider; (d) where the registered provider is a company, information as to any associated companies; and (e) a certificate of insurance for the registered provider in respect of liability which may be incurred in relation to the home.
3. Who the duty applies to
The financial viability duty in Regulation 47(1) applies to the registered provider. The financial records duty in Regulation 47(2) applies to the registered person, which includes both the registered provider and the registered manager. In practice, the provider has primary responsibility for financial viability, and the manager should ensure that financial records are maintained.
4. Related guidance
Where to go next
5. The separate 2026 financial oversight framework
Section 16 of the Children's Wellbeing and Schools Act 2026 came into force on 15 July 2026. It inserted sections 30ZE to 30ZJ into the Care Standards Act 2000, creating a financial oversight framework for certain non-local-authority providers of children's social care and certain provider groups.
This framework is separate from Regulation 47. Regulation 47 applies at the individual children's home level. The newer provisions operate at provider or provider-group level and are intended to give earlier warning where the financial failure of a strategically significant organisation could disrupt services for children.
Where a provider or provider group is within the scheme, the framework can require financial information, a recovery and resolution plan, and advance warning of circumstances that may threaten financial sustainability or continuity of services.
Do not assume every provider is automatically in scope
6. Practical actions for providers and responsible individuals
- Keep home-level financial records complete, current and capable of being supplied to HMCI if requested.
- Test whether budgets support the staffing, premises, care and therapeutic commitments in the statement of purpose.
- Monitor cash flow, occupancy assumptions, debt, covenant risk, insurance and dependencies on associated companies.
- Record how the responsible individual and provider board oversee financial risks that could affect children's care.
- Establish whether the provider or provider group may fall within the 2026 financial oversight framework.
- If brought within the scheme, maintain the required financial information, recovery and resolution planning, and escalation arrangements.
- Escalate financial pressure early where it could affect staffing, safeguarding, placements or continuity of care.
The financial resilience test
Could the provider show, with current evidence, that the home can continue delivering its statement of purpose safely if occupancy falls, costs rise or a key source of finance changes? If not, the financial oversight arrangements need strengthening.
Key takeaways
- 01Regulation 47 is an ongoing home-level duty linked to the aims and objectives in the statement of purpose.
- 02The registered person must keep adequate, up-to-date financial records and provide specified information to HMCI when requested.
- 03Financial viability is about sustaining safe, effective care, not simply avoiding insolvency.
- 04A separate provider and provider-group financial oversight framework came into force in July 2026.
- 05Not every provider is automatically within the newer scheme; providers should check the prescribed scope and any formal communications.
Related resources
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What to do next
Sources and further reading
This guidance references the following official sources. Always consult the underlying legislation and official guidance where appropriate.
Legislation
Legislation · Legislation · Care Standards Act 2000 sections 30ZE to 30ZJ
Accessed 2026-10-14
Legislation · Legislation · Commencement of financial oversight and information-sharing provisions
Accessed 2026-10-14
Legislation · Legislation
Accessed 2026-08-19
About this guidance
A concise explainer on Regulation 47 of the Children's Homes (England) Regulations 2015, covering the ongoing financial viability duty.