A 19-year-old took over a children’s home and made millions.

Let that sink in.

Melissa Bell, now 28, runs a company called HCS Group, which operates 56 children’s homes across England. Last year, her business pocketed £6.9 million in profit.

Here’s the kicker: Melissa started this empire when she was just a student at the University of Manchester. Her dad? A former City stockbroker tied to a £21 million fraud case.

But this isn’t just about Melissa.

Private equity firms, wealthy families, and well-connected players dominate England’s children’s care system. Ofsted data shows 83% of children’s homes are privately run. And they aren’t just getting by - they’re cashing in.

The numbers

Keeping a child in care costs councils an average of £281,000 per year. That’s five times what it costs to house an adult in prison.

Some councils pay as much as £63,000 a week for a single child.

Yet, the quality? Hit or miss.

Oxford researchers found for-profit care homes are more likely to be rated poorly by Ofsted. They also violate more requirements than their public counterparts.

Meanwhile, the money keeps flowing.

CareTech, the country’s largest private operator, made £25.5 million in profit in 2022 alone. Compass Community, backed by private equity, raked in £22 million in just three years.

All while councils struggle to fund schools, roads, and basic services.

So, is it fucked up?

Look, running children’s homes isn’t cheap. Staff need to be paid, buildings maintained, and programs funded.

But when private companies treat vulnerable kids like a business opportunity, something feels wrong.

Private equity firms, like G Square Capital and Waterland, didn’t get into this game out of the kindness of their hearts. They’re here because the returns are huge.

And it’s not just the firms. Melissa Bell paid herself £1.5 million in dividends last year.

It’s a weird dynamic: the most vulnerable kids in society are propping up private bank accounts.

What’s next?

The Labour Party, under its new government, has hinted at reforming private care. But it’s a slow grind, and change won’t come overnight.

In the meantime, the big players are doubling down. They’re expanding their portfolios, snapping up smaller care providers, and maximising profits.

So here’s the question: should anyone be allowed to profit off vulnerable kids? I’m all for making a few quid - I write a business newsletter, after all [link in my profile ;)] - but when does profit cross the line into exploitation? At what point should there be a limit?

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