Acorns, which is registered for up to four young people with emotional and behavioural difficulties, is owned by Family Care which also provides special educational needs education and fostering services.
The children's home specialises in supporting children to develop their independence skills and prepare them for their futures.
Children who have left there have moved to live in a family home or into semi-independent living, and many stay in touch with the staff.
A new report, published following the inspection last month, said: “The staff are excellent at helping children move in and out of the home.
"When children are due to move into the home, they visit beforehand, allowing staff to start building effective relationships with children.
"When children move out, staff ensure that this is a positive experience.
"For example, staff provide food parcels, new clothes and bus passes and ensure that children have everything they need for the next chapter of their lives."
The Ofsted inspector also noted how staff had transformed children’s engagement in education, and generally how well children do once moving to Acorns.
The report said: “Children make exceptional progress from their starting points when living in this home.
"One child was on the brink of being permanently excluded from school.
"However, since living at the home, his attendance has significantly increased, and he is on track to achieve nine GCSEs.
"This is because staff have high expectations for children and provide clear and consistent boundaries that give children security and structure."
The report said staff work with a therapist to understand children’s behaviours and to identify strategies to support them.
Staff at the children's home expressed their delight after being told of the outcome.
Residential services manager Liz Hiley said: “This is an amazing achievement, especially given the current Covid-19 situation. I’m so happy for Andie and the whole team at Acorns.
"Working in residential childcare can be extremely challenging, and it’s nice they have been recognised for the hard work they do. They fully deserve the outcome."
Andie Turner, registered manager of the children's home, added: “I am so proud of the staff team here at Acorns.
"I have worked here for 13 years and we have never achieved outstanding in all areas, so to do that under such challenging circumstances makes me very proud of the work we do to improve children’s lives and future chances in life."
The children's home was previously rated 'good' by Ofsted.