I n a quiet suburb on the outskirts of Copenhagen sits a large white house, set back from the road behind a purple-leaved plum tree. It looks much like the rest of the buildings on the street and there is little outward sign this is Josephine Schneider’s House, considered one of the best children’s homes in the world.

Danish children’s homes are often cited as the gold standard of children’s residential care globally. They are now being studied by the British government as it tries to create a roadmap out of the crisis in which its own children’s home system has become mired.

Last year there were 669 children living in illegal, unregistered children’s homes across England, with councils paying more than £125m of taxpayers’ money to keep them there .

Overall spending on children’s homes soared 96% in five years to over £3.1bn in 2023-24, while standards have dropped, private equity firms are cashing in and a growing number of children are being sent to homes hundreds of miles away.

The situation is dire,…