The high cost of care

During this time, we have taken great strides to transform and improve our own residential care services. And we are acutely aware of the impact these profit-driven practices have on vulnerable children and the public purse.

Private firms now dominate the children’s home sector in England, owning 83% of these facilities. While their defenders might argue that they provide much-needed capacity, the reality is far grimmer. Some firms are charging councils exorbitant fees — as much as £63,000 a week for a single child — draining public resources rather than reinvesting them into services that prioritise children’s welfare. 

Compounding the problem is the rising demand for residential placements, which has grown significantly in recent years. We have seen the number of children in care across the district rise by 7%, from March 2023 to March 2024. Local authorities are struggling to keep pace, forcing them to rely on private providers. The number of children requiring care continues to rise, driven by complex social factors, the consequence is a market-driven system.