Receive the complimentary Morning Headlines email for updates from our journalists around the globe.
Register for our complimentary Morning Headlines email service.
New analysis has revealed that nearly a third of council funding is being allocated towards children’s social care. This increase in demand has put local authorities in danger of declaring bankruptcy.
Due to the pandemic, there has been an increase in the number of vulnerable children being referred to local authorities, resulting in councils having to allocate more resources to meet the growing demand.
A coalition of 47 urban local authorities in England, known as the Special Interest Group of Municipal Authorities (Sigoma), has cautioned that certain councils are using nearly half of their budget on social services for children.
According to the analysis, Sigoma council members currently allocate 29% of their core spending power towards children’s services, a significant increase from 15% in 2011/12.
According to recent government data, there are currently a record high of nearly 84,000 children under the care of local authorities.
The least affluent regions have been affected the most, with the 15 most impoverished governing bodies increasing their allocation of funds for children’s services by more than double in comparison to their total budgets.
Spending on services for children has increased from 15% of the total spending of these councils in 2011/12 to 31% currently.
In Blackpool, the allocation for children’s services has increased from 15% to 45%.
The most recent government data reveals that the number of children under the care of local authorities has reached an all-time high of approximately 84,000.
Chairman of the Sigoma council association, Sir Stephen Houghton, stated that the increase in expenditures on services for children is causing many councils to approach the verge of financial collapse.
According to a survey by Sigoma, 10% of local authorities reported considering issuing a Section 114 notice this year. This notice informs the government that the council is approaching an illegal level of spending.
According to Sir Stephen, our members have informed us that placements for the most at-risk children can be as expensive as £1 million per year, with the majority falling between £250,000 and £750,000.
“The financial strain caused by demand-driven pressures is pushing councils to their limits.”
Jim Hobson, a member of the Blackpool council cabinet responsible for children’s services, stated that they are faced with the challenge of having to cut tens of millions of pounds from their budget each year while still meeting the demands for vital services such as children’s and adult social care.
According to The Independent, councils nationwide have seen a surge in reports of at-risk children. In July, it was reported that approximately 283,000 children required assistance from county councils, marking a 16,000 increase from the previous year.
30 out of 36 county councils had exceeded their budget by a total of £316m. Social workers specializing in children’s services attributed the rise in demand to the pandemic and the rising cost of living.
According to Patriche Bentick, a representative from the British Association of Social Workers, the rise in referrals can be attributed to a combination of factors, including heightened poverty, mental health issues, and domestic violence.
The Department for Levelling Up, Housing and Communities has been reached out to for a response.
Source: independent.co.uk
