At least £3.6bn in value was generated for councils across England, Wales and Scotland in 2021 when over 3,300 children were adopted, new research has revealed.

The analysis by Sonnet Advisory & Impact, commissioned by the Consortium of Voluntary Adoption Agencies (CVAA), calculated that the adoption of 3,359 children in 2021 generated around £4.2bn in value, including savings of £3.6bn for councils, £541m for the economy, and £34m for the NHS.

The modelling, which compared the outcomes of children who were adopted with those in other permanent placements found that the value created for adopted children, families and society is at least £1.3m for every child adopted.

The number of children adopted peaked in England in 2015 at 5,360, and has since fallen to 2,950 in 2022. This trend has occurred despite the numbers of children in care in England increasing 25% since 2010 – and at their highest levels since records began.

Andrew Webb, chair of CVAA, said: ‘It’s a rare thing when research concludes that the best outcomes for children can be achieved at the lowest cost to the state. With the country in recession and set for extremely challenging financial times over the years ahead, it would be madness not to give serious consideration to these findings, and we urge governments in all UK nations to act on falling adoption numbers now.

‘CVAA has always maintained that adoption is an intervention for the few, not the many – but the risk of adoption slowly vanishing as an option for children who cannot safely live at home is a grave concern. Evidence continues to show the life-changing and unrivalled benefits adoption holds for children, and with the sector working hard to improve the contact children have with their birth families, there is no justification for letting this trend continue unchallenged.’