Councils urge Budget rescue for overstretched services as new figures released

New figures show more than 81,000 children are now in care as councils warn that escalating demand and rising overspends risk overwhelming children’s services without urgent action in next week’s Budget.

The annual statistics, which capture the situation as of 31 March 2025, underline the mounting pressures on children’s social care as demand continues to escalate. The figures follow data released last month showing that councils are now carrying out more than 600 child protection investigations every day, where a child is suspected to be at risk of significant harm.

Read more: https://www.socialworktoday.co.uk/News/calls-to-better-support-parents-as-children-in-need-numbers-rise

In response, the Local Government Association (LGA) is calling on the Chancellor to use next week’s Budget to provide long-term, sustainable funding for family help, child protection, children in care and care leaver services. It warns that children’s services sit at the heart of the Government’s ambition to remove barriers to opportunity, but cannot deliver without adequate resources.

The LGA has repeatedly raised concerns about the worsening financial position facing local authorities. Despite rising budgets, councils overspent on children’s social care by an average of 14.2 per cent each year between 2022/23 and 2024/25. Planned spending for 2025/26 shows a further 10.1 per cent increase, yet demand continues to outstrip resources.

As a result, councils are increasingly resorting to short-term measures such as in-year cuts to other services and drawing on already depleted reserves – a situation the LGA describes as “not financially sustainable”.

Cllr Amanda Hopgood, Chair of the LGA’s Children, Young People and Families Committee, said the latest data highlights the scale of the challenge.

“Councils want to do everything they can to support children and young people and help them to lead happy lives where they can thrive.

“However, these figures are a reminder of the huge pressures that councils are under to provide this lifeline of support.

“It is vital the Chancellor in next week’s Budget sets out measures to adequately fund children’s services, ensuring councils have the resources they need so children get the support they deserve.”

The data released this week shows a mixed picture beneath the headline figures.
The number of children looked after (CLA) on 31 March fell by 2 per cent compared with last year (a decrease of 1,760 children) bringing the total to 81,770. This reduction reflects a 1 per cent fall in non–unaccompanied asylum-seeking children (non-UASC) in care (down 860) and a 12 per cent drop in UASC looked after (down 900).

The rate of CLA per 10,000 children has also shifted, falling to 67 per 10,000, down from 69 last year and from a recent peak of 70 in 2022 and 2023.

Meanwhile, fewer children started to be looked after during the year, while more children left care. The number of CLA ceasing due to a special guardianship order rose by 6 per cent (up 220), and the number of children adopted increased by 1 per cent (up 20).

These trends highlight both the continued pressure on councils and the changing dynamics of the children’s social care system as authorities attempt to respond to rising need with limited resources.