Izzy Lepone 29 May 2025

Councils faced with ‘astronomical’ children’s homes costs

Councils faced with ‘astronomical’ children’s homes costs image
© Madcat_Madlove / Shutterstock.com.

The number of children’s home placements costing over £500,000 annually has dramatically increased over the last five years, council chiefs warn.

New research from the National Children’s Bureau (NCB) reveals surging care costs are linked to a shortage of appropriate homes and lack of support for children with complex needs.

Researchers found that the increasing complexity of need has various influences, such as mental health issues, rising cases of self-harm and the pandemic.

Identifying that more children are entering care at crisis point, the report highlights that opportunities for early intervention measures such as special educational needs support and mental health resources are often missed.

Cllr Arooj Shah, Chair of the LGA’s Children and Young People Board, said: ‘The astronomical costs of care placements mean there is less money available for councils to spend on the earlier help children so desperately need.’

Advocating for a cross-department strategy, the LGA has urged the Government to use the Spending Review as an opportunity for long-term investment in children’s services, enabling councils to boost the care workforce, enhance the support services available to families and improve the standard of clinical support offered in homes.

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