Residential care costs for looked-after children have almost doubled in five years, according to a new report from the National Audit Office.
The spending watchdog is recommending government has better oversight of providers, with proportionate data on costs, profits, staffing, and capacity to guide the market and support councils effectively.
Cllr Amanda Hopgood, Chair of the LGA’s Children, Young People and Families Committee, said: “With more children needing help with increasingly complex and challenging needs, a lack of appropriate homes and the challenges with commissioning those placements are leading to an escalation in costs.
“The astronomical cost of care placements also means there is less money available for councils to spend on the earlier help children so desperately need.
“We would also like to see greater financial oversight of the largest providers, with some making huge profits when money should be invested in supporting children.
“In the Autumn Budget, the Government should ensure all councils receive sufficient funding to invest long term into family help, child protection, and child in care and care leaver services.