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Failure to support children with complex needs and lack of appropriate placements driving “astronomical” care costs, warns LGA

The Local Government Association (LGA) has called on the Government to ensure all councils receive sufficient funding to invest long-term into family help, child protection, child in care and care leaver services, after a study found that a failure to support children with complex needs is driving high care costs.

The research, carried out by the National Children’s Bureau (NCB), warns that the challenge of meeting the “increasing complexity” of children’s needs, along with a lack of appropriate homes for children and young people, is leading to an escalation in very high-cost placements.  

The study highlights a range of factors leading to increasing complexity of need, from the impact of the pandemic and historic cuts to early help, to rising levels of complex autism, mental health challenges and high instances of self-harm. 

It claims that with children coming into care later and at a “greater point in crisis than ever before”, opportunities to intervene earlier are being missed, from Sure Start-style family support to special educational needs provision and mental health support.

According to the LGA, the number of children’s home placements costing £10,000 or more per week – the equivalent of over £0.5 million per year – increased from 120 to 1,500 between 2018 and 2023.

Alongside “sufficient funding” for local authorities in the Spending Review, the LGA has called on the Government to develop a cross-government strategy for children, young people and families, “to ensure all partners are working towards a shared ambition”. 

Cllr Arooj Shah, Chair of the LGA’s Children and Young People Board, said: “With more children needing help with increasingly complex and challenging needs, what is most important is ensuring they get the best care and support. However in many cases, a lack of choice means provision is not fully meeting children’s needs.  

“The astronomical costs of care placements mean there is less money available for councils to spend on the earlier help children so desperately need.  

“As local partners we have key roles to play, and the Government can drive this from the top. By integrating planning and funding across departments and using the forthcoming Spending Review to make sure services have the resources they need, we can make sure children receive the care they deserve.”

Caroline Coady, Deputy Director at NCB, said: “The research makes clear that there are complex and intersectional factors driving high-cost placements. However, we heard from providers, local authorities and other stakeholders that an important part of the solution is relational commissioning. This includes strong relationships and open communication channels between local authorities and providers, with senior leaders taking an active role in developing these partnerships. 

“Children and young people should be able to expect high standards of quality that ensure they are safe and cared for. To achieve this, it is vital we create clear and accessible opportunities for young people to share their views and experiences, with confidence that they will be listened to and acted upon.”

The Department for Education has been approached for comment.

Lottie Winson

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