West Berkshire children’s services funding crisis caused by expensive placements

The “extremely challenging” cost of children’s social care placements, as well as increases in demand for other services like adult social care and temporary accommodation, are major factors behind the significant budget overspends being forecast by many councils, including West Berkshire.

Councils and the Chartered Institute of Public Finance and Accountancy (Cipfa) are calling on the Government to make more funding available to address financial pressures and avoid the need for poor value spending on short-term solutions.

West Berkshire Children and Family Services forecast it would spend £3.7m beyond its budget for Children’s and Family Services last year, and the picture is as grim for the coming year.

The increase is partly due to increasing costs of care packages and placements and also to the increasing numbers of children needing help.

Some individual children’s care are packages are costing as much as £9,000 per week.

Cipfa’s social care policy advisor Dr William Burns told the Local Government Chronicle that adults’ and children’s social care were “key drivers in budgetary overspends, with over three-quarters of council spending directed towards these services”.

“The cost of temporary accommodation is another significant pressure, going against every value for money principle,” he said. “Such short-term measures result in a costly and inadequate service today, leading to poorer outcomes for people and increased costs in the future.

“The Government must step up its mission to empower local authorities to build more affordable housing.”

In West Berkshire, the number of children requiring Education and Health and Care Plans to meet their needs is increasing on a monthly basis.

The Dedicated Schools Grant (DSG) is forecasting a spend of £4.9m beyond its budget for 2024/25.

A recent Carers Trust survey noted that one-in-eight unpaid carers were caring for an extra 50 hours a week or more over the past year.