Catalyst Care directors fined £92,400 for running unregistered children’s homes in Kent
Davidson Lynch-Shyllon and Miriam Ekathor disqualified after Ofsted prosecution in Croydon Magistrates’ Court
News London evidence indexOpen analysis ▾
Trust 74: named sources, official statements, specific figures with origins and dates, but only one outlet.
Higher is stronger
Critic 95: explains relevance, quotes affected parties, provides specific data, outlines next steps, clear narrative.
Higher is stronger
Hype 35: factual tone with some emotive quotes, no excessive sensationalism.
Lower is better
Croydon Magistrates’ Court fined Catalyst Care Ltd and its directors £92,400 in March for operating three unregistered children’s homes in Kent. The company, based in New Addington, provided accommodation for nine children between October 2022 and April 2025 without Ofsted registration.
The directors, Davidson Lynch-Shyllon and Miriam Ekathor, were disqualified from managing or financially benefiting from children’s homes. They were also ordered to pay victim surcharges of £2,960 and costs of £17,250. Each director repaid £193,000 in dividends received during the period.
Croydon Council sees 31% rise in upheld complaints under Mayor Perry
Ombudsman data shows 42 complaints upheld in 2025-2026, up from 32 the previous year
Payments and turnover
Catalyst Care received more than £1.8m from local authorities while running the unregistered homes. The company’s turnover rose from £190,000 in 2021 to £955,000 in 2024, as stated in court documents.
Ofsted brought the prosecution, marking the first successful case against an unregistered children’s home operator. The regulator warned that local councils using such providers could face downgrades in future inspections.
City of London Corporation’s children’s services rated outstanding by Ofsted
Inspectors praise sustained improvements and high-quality support for children and families in the Square Mile
Directors’ defence
Lynch-Shyllon told The Times that Catalyst Care attempted to register with Ofsted but received no response for 23 months. He claimed Medway Council gave written confirmation that the company could operate for 28 days while awaiting registration.
Medway Council said it repeatedly advised the company to register with Ofsted. Ofsted confirmed Catalyst Care submitted incomplete applications in 2023 and 2025 but did not meet registration requirements.
We didn’t decide to do this as some kind of get-rich-quick scheme. We have untold numbers of young people that came through our homes who are still contacting us today for help.
Davidson Lynch-Shyllon, Catalyst Care director
Regulatory response
Ofsted estimates around 900 illegal children’s homes operate in England. A 2024 report by the Children’s Commissioner found hundreds of vulnerable children placed in unregistered homes for an average of six months.
Sir Martyn Oliver, Ofsted’s chief inspector, said the prosecution sends a clear message that operating outside the law will have consequences. Ofsted is consulting on proposals to downgrade councils that use unregistered providers.
What happens next
Ofsted has new powers under the Children’s Wellbeing and Schools Act to issue fines to illegal children’s homes. The regulator is also reviewing how it inspects local authorities’ use of unregistered provision.
Dame Rachel de Souza, the Children’s Commissioner for England, called the prosecution the beginning of the end for illegal providers. Ofsted said it will increase prosecutions to tackle unregistered homes.
Questions this report answers
+How much were Catalyst Care and its directors fined?
Catalyst Care Ltd was fined £92,400, plus £2,960 in victim surcharges and £17,250 in costs. Directors Davidson Lynch-Shyllon and Miriam Ekathor were also ordered to repay £193,000 each in dividends received during the period.
+Why were the children’s homes unregistered?
Catalyst Care operated three homes in Kent without Ofsted registration between October 2022 and April 2025. Ofsted confirmed the company submitted incomplete registration applications in 2023 and 2025, failing to meet legal requirements.
+What happens to councils that use unregistered children’s homes?
Ofsted may downgrade local authorities that commission unregistered homes. The regulator is consulting on changes to inspections, including evaluating councils’ use of such providers, with new powers to issue fines under recent legislation.
+How many children were affected by Catalyst Care’s unregistered homes?
Nine children were accommodated in the three unregistered homes run by Catalyst Care between October 2022 and April 2025. Ofsted estimates around 900 illegal children’s homes operate in England, affecting hundreds of vulnerable children.
News London Desk
This article was written at the News London news desk from the reporting of the outlets listed below it. Drafting is done by a language model under human editorial supervision — there is no reporter behind this byline, and we would rather say so than invent one.
How stories are produced and scoredWho runs News LondonCorrections
The London Ledger
A considered capital-wide edit delivered each morning.
More Coverage in Council & Politics
Croydon Council sees 31% rise in upheld complaints under Mayor Perry
City of London Corporation’s children’s services rated outstanding by Ofsted
