£91m fund to transform high-cost children’s and adult social care services

Fourteen councils in England are to receive a share of £91 million to transform some of their most intensive and expensive services, including children’s social care and adult social care.

The funding, announced by the Ministry of Housing, Communities and Local Government, will be provided over the next two financial years to councils already receiving Exceptional Financial Support because of severe financial pressures.

Among the projects being funded is a programme in Stoke-on-Trent, where £9.14 million will support a series of changes to children’s and adult social care. The council will receive £4.14 million in 2026/27 and a further £5 million in 2027/28, with the second-year allocation dependent on satisfactory progress during the first year.

In children’s social care, the funding will support investment in family group decision making, reunification services and fostering recruitment and support. It will also contribute to a support hub intended to reduce reliance on expensive external residential placements.

The council said the programme is intended to reduce demand and create a more sustainable children’s social care system, while positioning Stoke-on-Trent as a national test bed for children’s social care reform.

In adult social care, the funding will support community-based prevention, including the development of Community Lounges in partnership with voluntary sector organisations. It will also contribute to plans to redesign adult services around a therapy-led model intended to help people maintain independence for longer.

Jane Ashworth, leader of Stoke-on-Trent City Council, said: “Protecting children and giving them the best start of life, and helping adults live thriving independent lives, are two of the most important things that councils do.”

She said the council was facing rising costs as demand increased, alongside pressure from high fees in the private sector.

“We are changing the way we deliver services in order to meet this demand and provide the standards of care that people expect,” Ashworth said.

The government said the wider £91 million fund would enable councils to modernise high-cost services, use technology and artificial intelligence where appropriate, and reduce reliance on emergency financial support.

Projects include the use of AI-powered technology in Redbridge to help people live independently for longer through home-based devices designed to detect and prevent falls.

In West Berkshire, funding will support a single route into children’s services covering SEND, Early Help and Children’s Social Care. The intention is to make it easier for families to access support while enabling different teams to work together to identify and provide appropriate help more quickly.

Brighton & Hove will use its funding to pilot closer integration between its adult social care reablement service and NHS services, with the aim of providing more joined-up support and helping people return home sooner following hospital stays or illness.

Trafford will invest in technology, including AI, and a new computer system intended to bring council information together so that different teams can work more effectively when supporting residents.

The remaining funding will support projects across services including housing, SEND and homelessness, with individual councils designing initiatives around their own local pressures.

Jim McMahon, Minister for Local Government, Devolution and Regional Growth, said: “Councils have been under enormous strain from a broken funding system and spiralling demand for services like care and temporary accommodation.”

He added: “This targeted support for councils facing the toughest pressures is the next step forward, helping end reliance on emergency funding and providing a blueprint for reform across local government.”

The government said lessons from the projects would be used to understand which approaches are effective and inform how future funding is targeted towards services relied upon by local communities.

The £91 million will be divided between 2026/27 and 2027/28, with £41 million allocated in the first year and £50 million in the second.

Stoke-on-Trent received the second-largest allocation at £9.14 million, behind Bradford, which was awarded £12.7 million. Other recipients are Brighton & Hove, Haringey, Havering, the Isle of Wight, the Isles of Scilly, Lambeth, Redbridge, Redcar & Cleveland, Sefton, Trafford, Waltham Forest and West Berkshire.

Ashworth said: “In order to do that it is vital that our services are adequately funded. We are pleased the government has listened to our proposals and provided this much-needed support.”