Tipping point reached as spending on children’s residential care outstrips early intervention services for first time

  • Number of children in residential care has more than doubled (102% rise) in 12 years as declining spending on early intervention services means many families are not getting help before they reach crisis point
  • For the first time more is being spent on residential care placements than the entire early intervention budget
  • UK’s leading children’s charities – Action for Children, Barnardo’s, The Children’s Society, National Children’s Bureau and the NSPCC – call for urgent reform of children’s social care system and investment in the Autumn budget to prioritise early intervention

The children’s social care system has reached a tipping point with more being spent on residential care placements than early intervention services for the first time.

Early intervention services such as children’s centres, family hubs and youth services are crucial to support children and families before problems escalate and can ultimately help bring down the numbers of those reaching breaking point.

In 2022/23, local authorities in England spent £2.4bn on residential care placements compared with the £2.2bn on all early intervention services that support families and help prevent children entering care, a new report reveals.

The research by Pro Bono Economics for the Children’s Charities Coalition – Action for Children, Barnardo’s, The Children’s Society, National Children’s Bureau and the NSPCC – calls for a cross-Government response to fix the struggling children’s social care system.

Since 2010/11 the amount spent by councils on early intervention services for families has fallen by £1.8 billion, a drop of almost half (44%), This is likely to have played a part in the number of children in care increasing by more than a quarter (28%).

Meanwhile, spending on late intervention services when families reach crisis point has reached record levels. It has increased by £3.6 billion in 12 years, which is a 57% rise.

The lion’s share of this increased spend has been directed towards funding children in residential care. The number of children in residential care has more than doubled (102% increase) since 2011 with spending on these placements jumping by 90% (an increase of £1.1billion). Almost half of this increase has come in the last two years.

Gaining insight from professionals, as well as through economic analysis, the report says child poverty, the mental health crisis and years of financial struggles within local authorities have exacerbated a vicious cycle of decline in early help when it is needed most.  

The Coalition is calling for more Government investment in preventative early intervention services and a sustained approach to eradicating child poverty in The Budget on October 30th.

Professionals have signalled that struggling families are going without early help meaning more children are needing late intervention support.

One Local Authority Cabinet Member for Children’s Services told researchers: “For some families, they’re just so very, very poor, and managing day to day is so very, very hard. And having a child who’s behaving difficult, can just be too much for a family to cope with.” 

Others said working with families early is key to better outcomes for children.

A Local Authority Children’s Commissioner where good practice was cited said: “What we’ve seen is a real push from the top to have good social work… but also be preventative within that social work, and care not being the answer in a lot of those ways, empowering those social workers to work with families wherever possible.” 

The findings come more than two years after the Independent Review of Children’s Social Care called for radical reform of children’s social care, backed up by long term spending to rebalance the system in favour of early intervention so that less children needed to be taken into care.

The Children’s Charities Coalition say extra investment should:

  • Make sure all families can access integrated family support services
  • Provide targeted support for families experiencing multiple challenges
  • Ensure all communities have the services required to meet the needs of children and families in their area.

Lynn Perry MBE, CEO of Barnardo’s and speaking on behalf of the Children’s Charities Coalition, said:

“We are stuck in a vicious cycle, with less and less support for children and families, just as rising poverty and poor mental health mean they are needed more than ever before.

“It’s absolutely right that councils prioritise children and young people already in crisis, so the only answer must be additional investment in services that help to prevent these crises in the first place.

“Despite the very difficult financial environment, we urge the Government to grasp the opportunity of the October Budget by taking a vital step towards a system that works much better to meet the needs of children and families and is ultimately more sustainable.” 

Matt Whittaker, CEO of Pro Bono Economics said:

“A combination of rising residential care need and rising costs is putting huge pressure on local authorities trying to support England’s most disadvantaged children. Near-term financing pressures mean important early intervention services are being squeezed out of budgets.

“This is obviously damaging for those children who are unable to access timely support, but it also comes at a significant cost to local authorities themselves because of the additional expenses associated with future crisis-point interventions.

A cross-government approach to better supporting children in need is required, because challenges associated with poverty, housing, mental health, education, community and immigration policies are all playing a role. Targeted investment has the capacity to improve outcomes and save money, but coordination is essential.” The full report is available to view here.

For interview requests and queries please contact [email protected]

Notes to editors

  • In 2023 there were 84,000 looked after children, up from 66,000 in 2011.
  • £9.9bn was spent on late intervention services in 2022/23 up from £6.3bn in 2010/11.
  • £2.2bn was spent on early intervention services in 2022/23 down from £4bn in 2010/11.
  • In 2022/23 £2.4bn was spent on residential care placements compared with the £2.2bn on all early intervention services. This is up from £1.3bn in 2020/2011.

About the Children’s Charities Coalition:

  • The Children’s Charities Coalition is a partnership of prominent UK children’s charities: Action for Children, Barnardo’s, The Children’s Society, National Children’s Bureau and NSPCC.
  • The Children’s Charities Coalition launched the Children at the Table campaign to call for the new UK Government to put babies, children and young people at the heart of Government policy making, backed by a step-change in investment to transform childhoods across the UK.
  • Read the Children at the Table report here.

About Pro Bono Economics

PBE is a think tank that uses economic analysis and the unique insight provided by our connection to the social sector to help charities, funders, firms and policymakers to collectively tackle the causes and consequences of low personal wellbeing in the UK. We do this in order to end low personal wellbeing in the United Kingdom. Experts and economists at PBE work on a wide range of issues related to low wellbeing, including mental health, education, employment, financial security, poverty, disability, inequality, volunteering and civil society. PBE works closely with the economics profession to achieve its aims, building relationships between 500 economist volunteers and charities over the last 14 years.

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 426 services across the UK, in schools and online, in 2022/23 we helped 765,905 children, young people and families.

About Barnardo’s:

  • At Barnardo’s, our purpose is clear – changing childhoods and changing lives, so that children, young people, and families are safe, happy, healthy, and hopeful. Last year, we provided essential support to 373,200 children, young people, parents and carers through more than 800 services and partnerships across the UK. For over 150 years, we’ve been here for the children and young people who need us most – bringing love, care and hope into their lives and giving them a place where they feel they belong.
  • Visit https://www.barnardos.org.uk/ to find out more.

About The Children’s Society:

  • The Children’s Society is a national charity that works with the most vulnerable children and young people in Britain today. We listen. We support. We act. Because no child should feel alone. To find out more visit: https://www.childrenssociety.org.uk.

About the National Children’s Bureau:

  • For over 60 years, the National Children’s Bureau has worked to champion the rights of children and young people in the UK. We interrogate policy and uncover evidence to shape future legislation and develop more effective ways of supporting children and families. As a leading children’s charity, we take the voices of children to the heart of Government, bringing people and organisations together to drive change in society and deliver a better childhood for the UK. We are united for a better childhood.
  • For more information visit ncb.org.uk / @ncbtweets

About 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 90 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 provides adults with a place they can get advice and support, share their concerns about a child or get general information about child protection. Adults can contact the Helpline 365 days a year.