New analysis by the LGA ahead of the Autumn Budget has found that spending on providing support for children in care is rising at a rate of £1 billion a year.
Councils spent £9.5 billion on support for looked after children in 2025/26, compared with £6.6 billion in 2022/23, according to the latest government data – an annual average increase of roughly £1 billion over the three years from 2022/23.
Adjusting for inflation, council spend has increased by almost a third (29.1 per cent) in this period.
The pressure on council budgets is also made clear by the continued presence of in-year overspends – a cumulative £3.2 billion overspend over this period – as councils have been hit with escalating in-year costs.
Cllr Natalie Oliver, Chair of the LGA’s Children, Young People and Families Committee, said: “Every child deserves the support they need to thrive and flourish in life. However, these figures highlight the stark financial pressures on councils to provide this vital support.
“It is crucial that the Government’s current reforms to the market for children’s placements deliver real and sustainable change, and that it adequately funds children’s services in the Autumn Budget.
“We also need to see genuine investment in early intervention and prevention, including health services, as this can make a huge difference and prevent children and families from reaching crisis later on.”