- Local authorities in England spent a record £14.7 billion on children’s services in 2024/25, reflecting the scale of pressure facing councils and rising costs of supporting children with highest needs
- Spending on early help services has fallen by 40% since 2011, leaving too many families without support until problems reach crisis point
- The average annual cost of supporting a child in care now exceeds £100,000 – a rise of 30% in five years
- The number of children in care has surged 25% since 2011 to 82,000 – far outpacing child population growth of just 7%
- Leading children’s charities say the government’s recent investment is hugely welcome but remains vulnerable to future cuts. The Children’s Service Funding Alliance is calling on government to deliver a clear plan for how this funding will be future proofed, so that children’s services can regain financial security in the long term.
- The report will be presented to MPs and Lords at a special meeting of the All-Party Parliamentary Group for Children on Wednesday 10 June.
Leading children’s charities have advised that recent government investment must be used to rebalance children’s services towards early support, as new analysis shows the scale of financial pressure facing councils in England in responding to families in crisis.
Poverty and deprivation, housing and homelessness, and the unmet mental health needs of children, young people and parents are all factors contributing to the scale of demand in local communities.
A new report by economic think-tank PBE, commissioned by The Children’s Services Funding Alliance (Action for Children, Barnardo’s, National Children’s Bureau, NSPCC, and The Children’s Society), shows local authorities in England spent a record £14.7 billion on children’s services in 2024/25.
The report provides an important baseline for judging whether new government funding commitments succeed in rebalancing the system over the next three years. While the increased investment is a major opportunity, this new analysis shows that children’s services are entering this period under intense pressure.
The analysis finds spending on early help services fell by 40% between 2011 and 2025, with more than 80% of children’s services budgets consumed by late intervention such as children entering
care and other acute services. The charities warn this has created a system increasingly forced to respond to crisis rather than prevent it.
The number of children in care has risen by 25% since 2011 to 82,000, far outstripping child population growth in the UK at only 7%. At the same time, the average annual cost of supporting a child in care has climbed to more than £100,000, up from £77,000 just five years ago, primarily driven by a combination of rising numbers of children in local authority care, increases in the complexity of children’s needs and escalating costs of care placements.
Despite these substantial cost increases, children in care continue to achieve significantly worse educational outcomes than average, with only 8% achieving grade 5 or above in English and Maths GCSEs, compared to 45% of all pupils. A staggering 40% of care leavers aged 19-21 are not in education, employment or training (NEET).
"Because I was in the care system, I got moved around a lot to different schools, didn't fit in well and got into a lot of problems. I felt that one school in particular felt that I was an embarrassment to them and they tried to ship me out when they had inspectors."
T, a 22-year-old from Bristol who grew up in the care system
Data from the Department for Education also reveals that, in 2025 alone, 6,750 children experienced three or more placement moves in a single year, while increasing numbers went missing from care.
Speaking on behalf of the Children’s Services Funding Alliance, Lynn Perry, chief executive of Barnardo’s, said: “This report lays bare the devastating consequences of a decade of cuts to early help services. It is extraordinary that more than 80% of children’s services spending now goes on crisis response, with too many children and families being left without support until their problems escalate to crisis point.
“Every statistic in this report represents a child who needed help earlier, and a family that may have been able to stay together with the right support.”
She added: “The government has begun the work needed to grasp this generational opportunity to break the cycle, by investing in early support that helps families sooner, prevents harm escalating, and gives children the stability and opportunities they need
to thrive. We will be watching closely and hopefully to see whether it delivers the change needed for children and families over the coming years.”
This report lays bare the devastating consequences of a decade of cuts to early help services. It is extraordinary that more than 80% of children’s services spending now goes on crisis response, with too many children and families being left without support until their problems escalate to crisis point.
Lynn Perry, chief executive of Barnardo’s
Speaking on behalf of the Children’s Services Funding Alliance
NOTES
About Action for Children
Action for Children protects and supports vulnerable children and young people by providing practical and emotional care and support, ensuring their voices are heard and campaigning to bring lasting improvements to their lives. With 342 services in local communities across the UK, in schools and online, in 2024/2025 we helped 551,400 children, young people, and families. actionforchildren.org.uk
About Barnardo’s – Changing Childhoods, Changing Lives
Barnardo’s has been helping children, young people and families to be safer, happier, healthier and more hopeful for more than 150 years.
Last year, the charity provided essential support to over 350,000 children, parents and carers through more than 650 services and partnerships across the UK.
This vital work is only possible thanks to Barnardo’s partners and supporters. Together, they’re bringing love, care and hope into children’s lives, so every child can feel like they belong.
To find out more or to donate to Barnardo’s, visit Barnardos.org.uk
About the National Children’s Bureau
For more than 60 years, the National Children’s Bureau has championed the rights and amplified the voice of children and young people in the UK. We interrogate policy and uncover evidence, blending in lived and learnt experience to shape future legislation and develop more effective ways of supporting children and families. Bringing people and organisations together is fundamental to how we improve the systems that babies, children, young people and their families rely on to thrive. We push boundaries, even looking beyond childhood itself to consider transitions into adulthood and the impact of childhood issues on an entire lifespan.
We are united for better childhoods and brighter futures.
For more information, visit ncb.org.uk
About the NSPCC
The NSPCC is the leading children’s charity fighting to end child abuse in the UK and Channel Islands. Using voluntary donations, which make up around 80 per cent of our funding, we help children who’ve been abused to rebuild their lives, we protect children at risk, and we find the best ways of preventing child abuse from ever happening. So, when a child needs a helping hand, we’ll be there. When parents are finding it tough, we’ll help. When laws need to change, or governments need to do more, we won’t give up until things improve.
Our Childline service provides a safe, confidential place for children with no one else to turn to, whatever their worry, whenever they need help. Children can contact Childline 24 hours a day, 365 days a year. Our free NSPCC helpline is open every day of the year for any adult worried about a child. Our practitioners provide advice and support, listen to concerns about a child, and offer general information about child protection.
About The Children’s Society
We provide specialist support that empowers young people to make positive changes and rediscover their hope. They want a future they can look forward to and we’re here to make sure they get it. Working alongside young people, their families and community, we will not rest until together, step-by-step, we've created a society built for all children.