Inspector Debbie Bond visited Upper Pendeford Farm, which provides short breaks for up to 6 young people at a time, last month.
She found that young people “make good progress and develop their independence skills", with staff going "that extra mile" to improve the health and welfare of the children in their care. Staff "prioritise children's education and work closely with teachers", meaning they "do not miss out on vital learning and understand the importance of education".
The careful planning of stays means that children develop friendships and enjoy social activities, and feel "valued and listened to".
The home's manager Phillip Johnson "is committed to providing the best possible service to the children attending the short break provision", while staff "have the skills and knowledge" they need to care for children in a residential setting.
Upper Pendeford Farm was previously judged Good in December 2018.
Councillor John Reynolds, the City of Wolverhampton Council’s Cabinet Member for Children and Young People, said: “This is a very positive report which demonstrates the continuing improvements to the service provided by Upper Pendeford Farm thanks to the hard work and dedication of Phillip Johnson and his team.
"The respite centre provides a home away from home for children and young people with emotional or behavioural difficulties and I am pleased that not only Ofsted, but also the young people and their families, speak so highly of the important support it provides.”