One in seven local authority secure children's homes (Lasch) could close, the head of the Secure Accommodation Network has warned.

Roy Walker said four of the 28 secure children's homes had not been offered contracts with the Youth Justice Board as part of its local authority secure children's homes retendering exercise. One home, in Derbyshire, has already closed. The board has yet to make a formal announcement on the retendering.

Only four homes had been awarded five-year contracts with the board, said Walker. "I am concerned that over the next 12 to 18 months more homes may become financially unviable and close," he said.

About 10 homes have been offered two-year contracts while, according to Walker, some have refused to work with the board and others are considering their options.

Although the move could free up beds for children who need a place on welfare grounds, Walker warned that social workers had "got out of the habit" of using Laschs as the board had previously bought so many of the places.