102% increase in the number of children in care in the past 12 years

Declining spending on early intervention services means many families are not receiving support before they reach crisis point.

For the first time, more money is being spent on children's residential care than on early intervention services to prevent children needing to go into care.

Early intervention includes services such as:

children's centres,
family hubs,
and youth services.

These services are vital to support children and families before problems escalate, and can help reduce the number of families reaching breaking point.

We are part of the Children's Charity Coalition, and alongside Action for Children, Barnardo's, The Children's Society, and the National Children's Bureau, we are calling for an urgent reform of the children's social care system, and investment in the Autumn budget to prioritise early intervention.

Report on children's services spending

The research by Pro Bono Economics for the Children's Charity Coalition, highlights the need for the government to fix the struggling children's social care system.

In 2022/23, local authorities in England spent £2.4 billion on residential care placements, compared with £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%) of spending on early intervention services for families by councils.

The spending on late intervention services when families reach crisis point has reached record levels, increasing by £3.6 billion in 12 years (a 57% increase).

Most of this late intervention spending has been towards funding children in residential care. The number of children in residential care has more than doubled since 2011, with spending on these placements increasing by £1.1billion. Almost half of this increase has occurred in the last 2 years.

Struggling against the tide: Children's services spending, 2011-2023

Read the report

Our asks for the government

Child poverty, the mental health crisis, and years of financial struggles within local authorities have exacerbated a vicious cycle of decline in early help when it is needed most.

The government needs to invest more into preventative early intervention services and a sustained approach to eradicating child poverty in the budget on 30 October.

This extra investment should:

Make sure all families can access integrated family support services.
Provide targeted support for families experiencing multiple challenges.
Ensure all communities have the services required to meet the needs of children and families in their area.

Lynn Perry MBE, CEO of Barnardo’s and speaking on behalf of the Children’s Charities Coalition, said:

“We are stuck in a vicious cycle, with less and less support for children and families, just as rising poverty and poor mental health mean they are needed more than ever before.

“It’s absolutely right that councils prioritise children and young people already in crisis, so the only answer must be additional investment in services that help to prevent these crises in the first place.

“Despite the very difficult financial environment, we urge the Government to grasp the opportunity of the October Budget by taking a vital step towards a system that works much better to meet the needs of children and families and is ultimately more sustainable.”

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