Ministers are facing calls for urgent reform of the children’s residential care system in the wake of shocking reports of vulnerable youngsters being abused and sexually assaulted at homes run by a private firm making huge profits. A BBC investigation revealed a series of alleged safeguarding incidents in which youngsters were put at risk in homes, schools and supported housing run by Calcot Services for Children, including assault, grooming and child-on-child sexual abuse. Former staff accused Calcot of putting profit before children, failing to meet contracted staffing levels, and neglecting to report several serious incidents over the past three years to Ofsted, the social care watchdog. Calcot recorded profits of 36% last year – double that of equivalent large care providers – after profits of 42% in 2020 and 32% in 2019, according to the BBC. The allegations follow the emergence of more general concerns about the quality, safety and sustainability of the predominantly privately run UK children’s residential care market, in which weekly fees can reach £150,000. Last month the government-commissioned independent review of children’s social care highlighted what it called a “broken” market that failed to meet the needs of too many looked-after children. It called for a windfall tax on the excess profits of the largest providers, and urged councils to band together to prevent profiteering. The review’s head, Josh MacAlister, told the Guardian the BBC’s revelations about Calcot highlighted several wider issues including profiteering, inadequate services and weak system oversight. “This is yet another example of the need for a radical reset to the children’s social care system.” The children’s commissioner for England, Rachel de Souza, told the BBC she was “appalled” by the findings, adding: “The entire system needs radical reform.” Incidents reported by the BBC include: A 28-year-old Calcot head office staff member was jailed after abusing his position by grooming and having sex with a 17-year-old while redeployed as a support worker at a supported living accommodation. A girl at a Calcot home with significant learning difficulties who was known to be at risk of absconding, repeatedly fled, once with a boy, and twice attempted to take her own life, in one instance being rescued from the side of a nearby river bridge. While some safeguarding incidents were not reported to Ofsted, others were but appear to have had little effect on the inspection ratings of Calcot’s homes and schools, which are rated outstanding or good. An Ofsted spokesperson said: “Our actions in relation to the homes reported in the BBC investigation will become clear when the reports are published. We take information from whistleblowers seriously. In respect of those who contacted Ofsted regarding Calcot, we have taken action in each case.” In a statement, Calcot Services for Children said: “The sector is rightly subject to stringent regulation and the company prioritises safeguarding all children in its care. It has a history of more than 30 years caring for and educating vulnerable and challenging children. It is known for achieving positive outcomes and is highly regarded by Ofsted and the local authorities with which it works.” Calcot added that it was grateful to the BBC “for highlighting what it considers to be safeguarding issues”. Kathy Evans, chief executive of Children England – an umbrella organisation for charities in the sector, said the children’s care market was spiralling out of control. “The need for decisive market intervention powers and publicly resourced contingency planning to provide safe, secure alternatives to such unsafe provision, really couldn’t be more urgent.”