Tory councillor critical over overspending in Children’s Care

Fresh calls have been made for Blackpool Council to control spending on Children’s Services with claims it can cost up to £300,000 a year to look after just a single vulnerable child.

Coun Carl Mitchell, who has been a foster carer himself, has warned Children’s Services has overspent by an average of £5m a year over the last five years partly due to such high costs.

But cabinet member Coun Jim Hobson says the government is now investigating “the issue of profiteering” from some residential care companies.

Coun Mitchell warned the financial pressure is driving up council tax, which is rising by a further five per cent in April, and taking cash away from other essential services.

Coun Mitchell, who also raised his concerns at the council’s recent annual Budget Meeting, said while there was a “duty of care for vulnerable children”, spending on the service was becoming “unsustainable” without a proper action plan.

He said: “Next year’s budget is £5m below the 2024/25 outturn. If the trend continues, we could face an £11m shortfall in 2025/26. Where will this money come from?”

Coun Mitchell is calling for a regulatory body to investigate the high costs of private residential care homes and introduce reforms, including a fee cap.

He added: “It should not cost £300,000 a year to look after a child. We need to purchase our own children’s homes and work with the voluntary sector to manage them.”

Coun Mitchell also emphasised the need to attract foster carers by increasing allowances and reducing red tape, saying: “By tackling inefficiencies in children’s services, we can protect vital services and freeze council tax for hardworking residents.”

Council leader Coun Lynn Williams told the budget meeting that around 80 per cent of councils expected to overspend on their Children’s Services budget due to the pressures faced.

She said: “This isn’t just Blackpool Council – this is after 14 years of under funding of public services across the board.”

She added: “This council will continue to do what we need, what we have to spend to have the best outcome for our children. They deserve that and we will continue to do it.”

Coun Jim Hobson, cabinet member for children’s services said councils had been asking the government to do something about “the extortionate costs of residential care” for many years.

He told the budget meeting, he was “very pleased to see the new government within four or five months have already instructed the Department for Education to issue a White Paper called Keeping Children Safe, Helping Children Thrive specifically to address the issue of profiteering from these companies.”