Children's social care spending hits record £14.7bn as early help funding falls by 40%

Spending on children's services in England reached a record £14.7 billion in 2024/25, with more than 80% of budgets now consumed by crisis intervention services following more than a decade of reductions in early help provision, according to new analysis.

The report, produced by economic think-tank PBE and commissioned by the Children's Services Funding Alliance, found local authority spending on children's services has reached an all-time high while investment in preventative support has continued to decline.

The alliance, which comprises Action for Children, Barnardo's, the National Children's Bureau, NSPCC and The Children's Society, said the findings demonstrate the scale of financial pressure facing councils and highlight the need to rebalance services towards earlier intervention.

According to the report, spending on early help services fell by 40% between 2011 and 2025, while 82% of children's services budgets are now spent on late intervention services such as child protection and care placements.

The number of children in care has risen by 25% since 2011 to 82,000, significantly outpacing child population growth of 7% over the same period. At the same time, the average annual cost of supporting a child in care has exceeded £100,000 for the first time, up from £77,000 five years ago.

Researchers said rising placement costs, increasing complexity of need and growing numbers of children entering care have contributed to the increase in spending.

Despite the record investment, outcomes for children in care remain significantly poorer than those of their peers. Department for Education data cited in the report shows that only 8% of care leavers achieve grade 5 or above in English and Maths GCSEs, compared with 45% of all pupils. Meanwhile, 40% of care leavers aged 19 to 21 are not in education, employment or training, compared with 15% of their peers.

The report also highlights continuing instability within the care system. In 2025, 6,750 children experienced three or more placement moves during the year, while increasing numbers of children went missing from care.

T, a 22-year-old from Bristol who grew up in the care system, described the impact frequent moves had on their education.

"Because I was in the care system, I got moved around a lot to different schools, didn't fit in well and got into a lot of problems," they said. "I felt that one school in particular felt that I was an embarrassment to them and they tried to ship me out when they had inspectors."

Marie Horton, Head of Analysis at PBE and author of the report, said the findings pointed to a system intervening too late to prevent families reaching crisis point.

"The trends in this report tell a troubling story of costly support delivered too late for the children and families who need it.

"Data can help us review the effectiveness of the additional government spend over time, with success measured via outcomes such as less families reaching crisis point and a reduction in avoidable escalation into the child protection and youth justice systems.

"Ultimately, the priority is improving the lives of children and families in England."

The report comes as the government begins implementing reforms to children's social care alongside new investment in family support services. The alliance said the additional funding presents an opportunity to shift resources away from crisis response and towards earlier intervention.

Speaking on behalf of the Children's Services Funding Alliance, Barnardo's chief executive Lynn Perry said: "This report lays bare the devastating consequences of a decade of cuts to early help services. It is extraordinary that more than 80% of children's services spending now goes on crisis response, with too many children and families being left without support until their problems escalate to crisis point.

"Every statistic in this report represents a child who needed help earlier, and a family that may have been able to stay together with the right support."

Perry welcomed recent government investment but said its impact would need to be closely monitored.

"The government has begun the work needed to grasp this generational opportunity to break the cycle, by investing in early support that helps families sooner, prevents harm escalating, and gives children the stability and opportunities they need to thrive. We will be watching closely and hopefully to see whether it delivers the change needed for children and families over the coming years."