Children's services spending reports

Research. Child looking away from camera

Children's social care services provide vital support and care to hundreds of thousands of children and families each year.

But these services, and the councils that fund and provide them, are increasingly under strain.

Our series of Children's services spending reports, produced by Pro Bono Economics for the Children’s Charities Coalition, show a concerning picture.

As spending on early intervention and preventative support has decreased, spending on late intervention services – when families have already reached crisis point – has risen to record levels.

Key findings from the latest 2024 report

Our latest report, Struggling against the tide: children’s services spending 2011–2023, found:

in 2022/23 local authorities in England spent:

£9.9 billion on late intervention, £2.4 billion of which was spent on residential placements for children in care
£2.2 billion on all early intervention services that support families and help prevent children entering care

there has been a drop of almost half (44%) in spending on early intervention services by councils, such as children’s centres and family hubs
early intervention now accounts for only 18% of total spending on children’s services, compared to 36% in 2010/11.
the spending on late intervention services when families reach crisis point has reached record levels – increasing by £3.6 billion in 12 years. That’s a 57% increase which is mostly due to increases in spending on residential placements for children in care
for the first time, spending on residential care alone is now greater than the total amount spent on all early intervention services combined (£2.4 billion vs £2.2 billion)
the number of children in residential care has more than doubled since 2011, with spending on these placements increasing by £1.1 billion. Almost half of this increase has occurred in the last two years.

Recommendations for Government

The Children's Charities Coalition uses the findings from the children's services spending reports to make recommendations for Government to help improve the lives of babies, children, young people and their families.

> See the recommendations we made to government in 2024 on the NSPCC website.

Struggling against the tide: Children's services spending 2011–2023
Download the latest report (PDF)

Citation

Please cite as: Larkham, J. (2024) Struggling against the tide: children's services spending 2011–2023. [London]: Pro Bono Economics.

Previous reports

The well-worn path: children's services spending 2010–11 to 2021–22

In 2021/22 local government spending on children’s services increased by £800million, and:

£4 in every £5 of that increased spending went on late intervention services
spending on early intervention services decreased by 46% compare to 2010–11
in the previous 12 years, the number of children in residential care increased by 79% and spending rose by 61%.

> Download the well-worn path: children's services spending 2010–11 to 2021–22 (PDF)

Stopping the spiral: children and young people's services spending 2010–11 to 2020–21

The 2022 report found:

spending by local authorities on early intervention services for children and young people fell by £1.9 billion between 2010–11 and 2020–21
by 2020–21, 80% of all local authority spending on children and young people went on late intervention services, up from 58% in 2010–11
the pressure on late intervention services increased costs, meaning real costs of care increased by 11% per child between 2012 and 2020
between 2010–11 and 2020–21, total spending on children and young people’s services fell by £241 million in the most deprived fifth of local authorities, while it rose by £228 million in the least deprived local authorities.

> Download Stopping the spiral: children and young people's services spending 2010–11 to 2020–21 (PDF)

Children and young people's services: spending 2010–11 to 2019–20

Between 2010–11 and 2019–20:

there was a £325 million drop in annual spending on children’s services
spending on children's services in the most deprived areas fell by 14% per young person
there was a 48% decrease in spending on early intervention services
the annual cost of supporting a looked after child increased by more than 20% to £64,000 as a result of growing demands on the care system.

> Download Children and young people's services: spending 2010–11 to 2019–20 (PDF)

About Pro Bono Economics

Pro Bono Economics uses economics to empower the social sector and to increase wellbeing across the UK. It combines project work for individual charities and social enterprises with policy research that can drive systemic change. Working with 400 volunteer economists, Pro Bono Economics have supported over 500 charities since its inception in 2009.

Logos of Children's Charities Coalition partners: Action for Children, Barnardo's, The Children's Society, National Children's Bureau, NSPCC

About the Children’s Charities Coalition

The Children’s Charities Coalition is made up of Action for Children, Barnardo’s, National Children’s Bureau, NSPCC and The Children’s Society.

Together, we work to ensure that ambitious and long-term investment is made in services and support for vulnerable children and young people across England to improve their lives and those of future generations.