Children's care spending hits council costs

Rising costs for children in care have led to a council forecasting it will spend more than it budgeted for in the current financial year,

Cheshire West and Chester Council is forecasting an overspend of more than £10m for the year to 31 March 2027.

It said the highest overspend was in its children and families department as the average cost of each looked after child reached £83,000 - up from £69,000 originally budgeted.

But the council has said there were underspends in some areas - and its Northgate development in Chester is bringing in more money than previously expected.

A report to Cheshire West and Chester Council's overview and scrutiny committee includes an update for the first half of its financial year.

It is forecasting an overspend of £6.9m in children and families, £2.7m in adults, £1.5m in corporate services and £700,000 in public health.

But it is also expecting an underspend in place and growth, and capital financing.

In Children and Families, it said its expected to spend £5.4m more than it originally budgeted for on costs for placements for children under its care.

It said this "significant change" was because of a rise in the average cost of children in care - despite the numbers of looked-after children remaining "relatively stable".

But the report said the number of children in care placements costing more than £10,000 a week has increased to 17 and these account for 38% of placement spending.

Elsewhere, the council said there were some areas where the authority was spending less than expected - including in its place and growth division.

The report said spending on temporary accommodation was lower because the council was using hotels less and the costs of its new in-house temporary accommodation team was lower than expected.

It also said the Northgate scheme in Chester - which includes a market hall, restaurants, and multi-storey car park - is forecast to report income of around £450,000 more than budgeted for.

This was put down to more income from the car park and the market.

The report is to be discussed by the council's overview and scrutiny committee on Monday (9 November).

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