Funding cuts to children’s social care leave council budgets ‘buckling’

Council children’s services budgets are ‘buckling’ under the pressure of rising costs, according to new analysis.

The analysis, conducted by Pro Bono Economics, finds that local authorities across England increased their spending on children’s services by £800 million for 2021-22, an 8% surge from the previous year.

The analysis also unveils a concerning trend: 81% of the recent increase was funnelled into crisis intervention services, a rise from the 67% seen a decade ago. Of this additional spending £4 in every £5 went on late intervention services.

Melanie, a front-line practitioner with The Children’s Society, speaking to researchers said she witnessed the impacts of the cuts first-hand with many crucial early help routes now unavailable.

“The youth service is now nearly all gone,” Melanie said. “Where young people used to go to lots of youth centres and clubs and get all of their energy out with their friends, that’s now not happening. With youth centres closed, they’ve got less places to go where they can feel safe and be engaged in positive activities. Home Start, the youth service, family support sessions, everything has gone.”

Leading national children’s charities that commissioned the analysis say that this means children are receiving help after issues escalate, rather than preventing them. With the rising expenses in late-stage interventions, primarily in children’s social care, the crucial early steps that could avert crises are being sidelined.

“The time is now for an urgent shift in children’s services. We're firefighting a growing crisis in children’s social care that’s not only costlier but often misses delivering the best for children and their families,” Mark Russell, CEO of The Children’s Society, said. "This isn’t just about funding; it’s also about timely, effective care. Our children deserve proactive support, not just emergency responses when situations worsen.”

Paul Carberry, CEO at Action for Children, said the research showed that successive governments have failed to tackle the issue and “run children’s services like A&E units, where only those at serious risk of harm get help”.

“This research shows once again how central government spending cuts are trapping cash-strapped councils in a ‘doom loop’, as their costs of children in care spiral and prevention services have to be slashed.”

Chris Munday, Chair of the Association of Directors of Children’s Services (ADCS) Resources and Strategy Policy Committee, said that the rising demand was leading to ‘increasingly counterintuitive’ decisions to balance budgets.

“These pressures are exacerbated by the exorbitant costs of some types of placements which are driven by the huge profits made by private providers backed by hedge funds.

“Local authorities must fund statutory child protection where need exists, but we must also balance our budgets.

“There is simply not enough money in the system to meet the level and complexity of need now evident in our communities, whilst also investing in earlier support to prevent children and families from reaching crisis point. When budgets are under pressure sadly non statutory parts of the system, the very services that can limit future demand, are often the first to be cut, it’s a vicious cycle.”

Charities are warning that local authorities are being forced to tread “well-worn paths” into late intervention spending as they grapple with difficult spending budgets, calling on central government to rapidly increase the speed of reform and investment, including faster implementation of the Care Review Recommendations.