Councils 'prioritising crisis intervention funding'

Research finds that while councils in England had increased children’s services spending by £800m for 2021/22, four out of every five pounds of this increase was spent on crisis intervention services.

In contrast, a decade ago just over two thirds of increased funding was being spent on crisis support.

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Researchers point out this increase coincides with a fall of 46 per cent in council spending on early intervention services over the last decade. While council early intervention services spending totalled £3.7bn in 2010/11, this had shrunk to just over £2bn in 2021/22.

Over the same period total spending on late intervention services to help families in crisis increased from £6bn to £8.8bn.

The analysis has been carried out by think tank Pro Bono Economics and has been commissioned by children’s charities including Action for Children, Barnardo’s, The Children’s Society, National Children’s Bureau and NSPCC.

“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," said The Children’s Society chief executive Mark Russell.

"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.”

Action for Children chief executive Paul Carberry said councils are trapped in a “doom loop” of cutting prevention services spending to support families in crisis.

“For years now, successive governments have forced councils to run children’s services like A&E units, where only those at serious risk of harm get help,” he said.

“Waiting for children to be exposed to harm hurts children and families and burns a massive hole in council finances. This is simply unsustainable.

📣 New report! Read our latest analysis of local authority spending on children’s services and the impact this will have on plans to reform provision for vulnerable children @barnardos @NSPCC @childrensociety @ncbtweets @actnforchildren 👇1/7https://t.co/tcrpcpzxf0

— Pro Bono Economics (@ProBonoEcon) September 14, 2023

“We need to rebalance children’s services, so councils have the capacity to intervene earlier, support parents, protect children and keeps costs down.”

It warns there has been a “staggering” 79 per cent increase in children entering children’s homes since 2010/11. Over the same period spending on residential care has increased by 63 per cent.

“The financial strain on local authorities caused by crisis support for families at ever increasing levels is unsustainable,” warns NSPCC chief executive Peter Wanless.

Youth clubs and activities are among early help services that have been cut.

One frontline Children’s Society staff member who spoke to researchers said that in her area “the youth service is now nearly all gone."

“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," she added.

Chris Munday, chair of the resources and strategy policy committee at the Association of Directors of Children's Services, said: “This report shows that local authorities are spending more on children’s services, but that this is skewed towards late intervention. We are having to make increasingly counterintuitive decisions to manage rising demand whilst having to balance our 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. Local authorities want to support children and their families at the earliest possible opportunity because this is the right thing to do, but we need government’s support to do this."