Four in five of England’s largest councils overspent on their children’s services budget last year because of more young people requiring care since the pandemic, according to new research.

Analysis by the County Councils Network (CCN) found that 30 out of 36 county councils overspent on their children’s services budgets between 2021 and 2022.

The combined overspending was £317m.

The CCN said that between 2020 and 2022, councils in county areas saw an increase of 8.8% in referrals to children’s services, which are made when there are concerns about a young person’s safety and wellbeing.

Referrals increased after the pandemic and remain high due to the cost of living crisis, according to councils.

The CCN said that councils have increasingly had to prioritise young people in crisis, rather than focusing on preventative and early help services.

Council leaders said that this was a ‘vicious cycle’ but budget pressures meant they had little choice.

Councils said they welcomed the Government’s children’s social care implementation strategy, which was unveiled in February, but said that the £200m of funding that was allocated for services over the next two years did not go far enough.

Cllr Keith Glazier, children’s services spokesperson for the County Councils Network, said: ‘These concerning figures illustrate once again the impact of the pandemic and the cost-of-living crisis on vulnerable families.

‘Faced with this spike in demand, most councils in county areas have had little choice but to overspend on their children’s services budgets to protect young people. But four in five county authorities overspending is unsustainable.’

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