Children's services spending reports

Key findings from the 2024 report

The 2024 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.

> Download Struggling against the tide: children’s services spending 2011–2023

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)