GUEST: The Rise (and Fall?) of the Fractional RI in Children’s Homes

NCERCC welcomes an article by guest writer Tom Ellison.  This is the second in a series of articles by Tom about children’s residential care and, in particular, changes to the children’s residential care landscape.

Tom writes

For years, establishing a children’s home required three key elements: significant capital, a Registered Manager (RM), and a Responsible Individual (RI). Both the RM and RI needed substantial experience in residential care and the associated expertise.

Consequently, many new children’s homes emerged from established providers, as senior leaders left to form their own ventures. This also influenced the sector’s growth, as there was a scarcity of RIs to meet demand.

However, the emergence of the “fractional” (part-time, consulting) RI has altered this landscape over the past decade. Consultants are now engaged on a part-time basis to fulfil the RI role, making it easier for new providers to find RIs and reducing the costs of employing a full-time, experienced RI.

This arrangement removes a significant barrier to establishing new provisions, allowing new entrants into the market.

However, Ofsted has recently highlighted issues with these arrangements.

Firstly, many Fractional RIs operate without formal contracts, creating insecurity for both parties. Secondly, the looser connection to the business results in a lack of accountability compared to a director or senior leader.

This lack of connection can cause problems in challenging situations. For instance, in the face of an adverse quality judgment or compliance notice, a Fractional RI, as a freelance contractor, might simply walk away, leaving the provider (and the children) vulnerable. Similarly, they might abandon a registration process mid-way, wasting resources for both the provider and the Regulator.

Ofsted is addressing this issue. Their February 2025 guidance states that the RI must “be able to meet the regulations for children’s homes responsible individuals, including being a director or senior postholder of your organisation.”

This suggests a move towards requiring RIs to hold formal positions within the organizations they oversee, ensuring greater accountability.

Indeed, this guidance has already prompted fractional RIs to seek contracts of employment from their clients in response to a signal that the regulator will be more closely scrutinising RI arrangements.

Ofsted appear to be asserting that the RI must be truly “responsible,” not just in name, but in their commitment and accountability.