Poor outcomes for children in care cost £23bn a year, Care Review analysis shows

The analysis, carried out by Alma Economics, examines the cost of services accessed by those with care-experience due to the likelihood of experiencing poorer outcomes in areas including health, mental health, employment and education throughout their lives compared with those who did not have a social worker as a child.

People with care experience are “also more likely to go on to experience homelessness, abuse alcohol, spend time in prison and have shorter lives,” the report states.

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The report estimates the societal cost of each child that needs a social worker is at £14,000 a year and up to £720,000 over their lifetime.

It identifies societal costs as access to public services including mental health and wellbeing support, support for homelessness and unemployment, services to tackle drug and alcohol misuse and the cost of offending.

It also highlights the additional cost of intergenerational cycles of care due to cuts to early help services for vulnerable families.

“Applied to those of all ages who have ever needed a social worker as a child, the estimated social cost totals £23bn a year,” the report states.

It adds that when public services are taken into account local authority spending on children’s social care is as much as 25 per cent higher than estimated.

“Spending on children’s social care is usually considered to be the £10.5bn directly spent by local authorities - this report shows the total is estimated to be almost 25 per cent higher with an additional £1.2bn spent by central and local government on care proceedings and £1.3bn spent on additional public services provided to children who need a social worker,” the report states.

It adds that the findings will be used to present a clear case for greater funding for children’s social care when the review publishes its recommendations for government in spring next year.

“The review will result in clear, deliverable recommendations to better guarantee that children can grow in their families with safety, stability and love and, where this is not possible, that care will provide the same foundations. 

“As part of this, the review will consider how and where resources should be best spent to deliver significant and lasting change for children and families,” it concludes.

Chair of the review, Josh MacAlister, said the findings highlight that “the moral case for change is indisputable.”

Presenting the report to the National Children and Adult Services Conference later today (26 November), MacAlister is expected to say: “The toll of early adversity, loss and trauma for children who have social care involvement is substantial and is borne acutely over a lifetime by children themselves. 

“Through this report we want to add weight to the case for changing children’s social care, adding hard headed economic analysis. 

“The cost of poorer outcomes, which amongst other things includes impacts on health and wellbeing, losses in productivity, and higher spending on public services, is estimated at an eye watering £23bn a year.”