The cost of caring for ‘looked after’ children across all English regions has increased by more than two-fifths over the last five years.
According to the latest statistics from the Ministry of Housing, Communities and Local Government, the average cost rose by 41%, increasing from £589,689 per year in 2019/20 to £829,123 in 2023/24. Total expenditure reported by the ministry includes the sum of employee costs and running expenses.
The data shows significant increases in the North East (64%) and Yorkshire (62%), with expenditure rising in London from £852,161 to £1,144,659 over a five-year period. Other big spenders were the North West, with costs sitting at £1,073,352 in 2022/23. Figures were unavailable for the following year.
The research, which was carried out by Tristone Healthcare, comes as the chancellor announced £555 million of ‘transformation funding’ on Wednesday to ‘break the dangerous cycle of late intervention and low-quality care’ in children’s social care.
But, as costs rise, the funding commitment falls short of where it needs to be, according to Rob Finney – chief operating officer at Tristone Healthcare.
He commented: “The sector has long called for more funding to resolve endemic issues in children’s social care. An independent review carried out by now-MP, Josh MacAlister, recommended a five-year plan, with significant investment to support fundamental changes.”
The review stated: “Without a dramatic whole system reset, outcomes for children and families will remain stubbornly poor and by this time next decade there will be approaching 100,000 children in care (up from 80,000 today) and a flawed system will cost over £15 billion per year (up from £10 billion now).”
Finney added: “£555 million over the spending review period is a start, but it will only touch the surface, in terms of what is needed. It’s yet another disappointment for a sector that’s in dire need of central support. With recent government announcements curbing the future recruitment of overseas care staff, as well as apprenticeship funding being pulled for Levels 6 and 7, the social care has been left reeling. The spending review does little to instil confidence amongst industry leaders that long-term and transformational support is going to be forthcoming. More needs to be done.”
