During 2022/23 local authorities in England spent £2.4bn on children’s home placements compared to just £2.2bn on early intervention services.
The situation has emerged amid a doubling of the number of children in residential care over the last 12 years and falling early help budgets over the same period.
Since 2010/11 total early intervention spend by councils almost halved, falling by £1.8bn.
The research has been carried out for the Children’s Charities Coalition, whose members include Action for Children, NSPCC and Barnardo’s, by think tank Pro Bono Economics.
Falling early help budgets are “likely to have played a part in the number of children in care increasing by more than a quarter” over the same period, they warn.
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