Revealed: The £10k per week cost to council taxpayers for outsourced childcare

By Robert Firth, Local Democracy Reporter

Three South London councils are paying outside organisations £10,000 per week or more to look after children in their care.

There were at least 22 children looked after by Lambeth, Lewisham and Southwark councils, whose residential care placements cost £10,000 or more per week last year, Freedom of Information (FOI) requests reveal.

Children in expensive placements often have complex and severe mental health problems or serious behavioural issues. Residential care placements can include children’s homes and secure children’s homes. It previously also included unregulated accommodation, which since April has fallen under Ofsted’s remit.

In 2022/23, Lewisham spent £10,000 or more per week on 13 residential care placements. Lambeth had eight costing at least £10,000. Southwark spent a five-figure sum on an undisclosed number of placements – the council refused to provide an exact figure, citing concerns about identifying individuals.

There is a nationwide shortage of suitable placements for children with complex needs and those that do exist are often offered by expensive private providers.

The number of children’s social care placements costing £10,000 or more per week has increased 1,150 per cent in five years, the Local Government Association (LGA) revealed last year.

Figures revealed through FOIs suggest the increased cost of placements is causing inner South London councils’ spending on accommodation for kids to balloon.

Councillor Jasmine Ali, deputy leader of Southwark council and cabinet member for children, education and refugees said: “Our preference is to find foster carers to provide a loving home close to our children’s local communities. However, we know that foster care isn’t always the best or preferred option for all our children.

“This is why we have expanded our offer to include children’s homes that accommodate very small numbers of children. There are exceptions where different placements are in the best interest of the child’s needs and safety, which can of course come at a higher cost.”

A Lewisham council spokesman said: “When making decisions about where to place a child or young person in our care, our first priority is securing a placement that meets their needs and ensures their safety and well-being. – but only a small proportion of residential placements cost more than £10,000 a week.”

A Lambeth council spokesman said: “The cost of children’s social care placements has risen for councils across the country, and Lambeth is no exception.”

Pictured top: Lewisham council HQ in Catford (Picture: Google Street View)