One firm's chief was a speaker about how to make thousands from children's homes. Staff had to purchase essential items for their children.
Toiletries, towels and bedding were purchased by staff at a home run by Northamptonshire-based Bttlr Limited, according to Ofsted, because there had been "no money available" to them.
Director Lizzy Ringisai was invited to speak at webinars. One of the topics was how to make up to PS14,000 per week for your child.
She has not yet responded to BBC.
The responsible person at the home said that the company, Connecting Hands, is "dedicated towards the care of our youth".
Two webinars in 2019 featuring the PS14,000 figure were mentioned on Facebook.
One June 2012 article states that "Tomorrow... Lizzy Ringisai will host a special webinar about how to register with Ofsted and make up to PS14,000 per week for each child.
The description for the next month is: "Join Lizzyringisai tomorrow...on a live webinar. She will help you make as much as PS14,000 per monthly by setting up an Ofsted child's home this summer.
Ms. Ringisai, the only director of Bttlr, is stated in recently published accounts that the company paid PS70.515 to directors in 2021 after loans.
Connecting Hands website states that in addition to its current four homes in Northamptonshire it will open a new one in Coventry to house five young people with mild-to-moderate learning disabilities and children.
Caroline Brailsford, an Ofsted social care inspector, visited one of the homes to see if it could provide care for a child with emotional, social, and behavioral difficulties. It was due to "anonymous complaints" received from former or current staff.
Ms Brailsford stated that the complaints were about "staffing arrangements not being sufficient" and "concerns over a lack money in the home to support the child's basic needs."
She stated that staff turnover was "very large", with nine employees leaving the office since the last inspection, which took place 10 months ago.
Another finding was that staff weren't "appropriately qualified", staff felt under pressure to work more shifts, and low staff morale had a negative effect on care.
According to the report, "Staff claim that they don't have enough funds to buy household items or provide a variety of activities for their child."
On the day of the monitoring visit, there was no petty money in the home. Because there was no money, staff have bought toiletries, towels and bedding with their own money.
A full inspection was conducted on the home in the next month. The report stated that it "not yet delivering excellent help and care". It found that there were no "serious or widespread failures" which resulted "welfare being not being promoted or safeguarded".
Inspectors discovered that leaders and managers were not effective.
Florin Morar, the responsible person for the home, stated that he would make all necessary changes to ensure the safety and well-being of the children he looked after.
"The young adult at the home is making good progress. He is happy, settled, and is engaged in education.
"As a company, we are committed to the care and welfare of our young people. We cannot comment on data protection or duty of care issues.
"However we work with Ofsted, who are our regulator body, and any concerns they might be having, we work hand in hand to ensure we achieve the best outcome possible for our children as per company ethos."
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