Last month's decision by the Youth Justice Board (YJB) to cut the number of custodial places it commissions in these homes is now having a knock-on effect as homes rely on income from two key sources to survive - the YJB, which funds custodial places, and local authorities, which fund welfare places. It cements a wider trend, which has seen the number of homes fall steadily over the past 15 years.
But this gradual decline should not be seen as inevitable.
Despite the fall in numbers, there is evidence that there is plenty of demand for secure children's homes. Last year's Safeguarding Children report by the joint chief inspectors clearly stated that demand for places in secure children's homes often exceeds the availability.
Young people are placed in secure children's homes where there are serious concerns about their welfare, where there are risks that they may cause harm to themselves or others, and as an alternative to custody. Alternatives such as young offender institutions cannot provide the high level of staffing by professionals focused on rehabilitation. And if a child is to be deprived of their liberty for welfare reasons, it is right that a court order is needed. Such checks and balances are not the same in an ordinary children's home.
Voice, the charity that provides advocacy services for children in care, conducts exit interviews with children who leave secure children's homes. Its chief executive John Kemmis says that young people often say the time has helped them deal with the issues that got them into trouble in the first place, making them feel more confident that they won't get into trouble again.
One of the reasons young people feel that they can make a fresh start as they leave secure care is that they've had individual attention from highly trained staff. But this costs money - much more per head than the alternatives.
However, this is an investment worth making. If damaged children are not helped to recover, the state simply picks up the bill later on - be it for adult prison, unemployment or adult psychiatric care.
What's needed is a national strategy from the government to ensure a more joined-up approach to commissioning places in secure children's homes.
- Ruth Smith, news editor, Children & Young People Now.