England’s children’s social care system is ‘broken’, with young people increasingly placed in unsuitable homes and councils struggling with rising costs.
A new report, published by the Institute for Government, found local authorities are too often forced to make care decisions based on what placements are available, rather than what children actually need.
In some cases, councils are choosing what the report describes as the ‘least unacceptable’ option, with shortages of foster carers and residential placements leading to children being placed miles away from their families and schools.
The report found that more children are being placed in residential care – often the most expensive and restrictive type – even when foster care may be more suitable. Others are being housed in unregulated accommodation, raising concerns about safety and standards.
To give context, the latest research from the Children’s Commissioner found that as of September 2024, around 775-800 vulnerable children in England were in illegal, unregistered or insecure placements.
The report also warned of a postcode lottery in care, with the quality of support varying depending on where a child lives.
Demand for care has been rising steadily, while councils have fewer suitable placements available. Ever more, local authorities are relying on private providers, which now dominate the residential care market.
The Competition and Markets Authority – responsible for preventing anti-competitive practices – previously found some large providers were making profits above expected levels, while costs for councils continue to increase.
Some local authorities are now spending more than £1m a year on individual care packages, according to recent government tracking data.
Going forward, the report notes that councils could improve the system by better predicting demand. This means investing in foster care support, expanding their own in-house provision and supporting preventative services.
However, the research warns that years of budget cuts have left many authorities without the resources to make those investment. Recently, we covered the news that adult social care costs have swallowed the majority of Newcastle City Council’s budget.
The think tank welcomed the government’s latest reform package, announced in 2024 under prime minister Keir Starmer, particularly its focus on early intervention and prevention, but argues the plans do not go far enough.
The report proposes a 10-point plan to deliver children’s social care reform, some of which include:
- Improve the quality of data on preventative children’s services
- Make sure regional analysis of demand stays detailed
- Clearly define preventative spending and prioritise it at every government level
- Tackle the financial barriers to becoming a foster carer
- Develop a clear plan to ensure there is enough workforce capacity to deliver its reforms
The full report can be read here
Photo: Richard Stachmann / UnSplash
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