Home / Business and Economy / Council's £3m Care Bill Sparks 'Profiteering' Outcry
Council's £3m Care Bill Sparks 'Profiteering' Outcry
2 Oct
Summary
- Specialist care for five vulnerable children costs £3m annually.
- Council overspent £9.3m due to high specialist care demands.
- Companies are accused of profiteering from essential child services.
West Berkshire Council is grappling with escalating costs for specialized care, with five vulnerable children requiring services that amount to £3 million per year. This situation contributed to a £9.3 million overspend in the first quarter of the financial year. Deputy leader Heather Codling has voiced concerns that private companies are exploiting councils' inability to provide these services in-house, leading to significant profits.
The council is receiving £5 million in exceptional financial support over two years to centralize access to support for families and carers. Last year, the National Audit Office reported that the cost of residential care for children in England nearly doubled in five years, with average spending reaching £318,400 per child in the year ending March 2024. The NAO also noted substantial profits for the largest providers.
In response to these concerns, the government is planning to cap provider profits. However, the Children's Homes Association argues that council-run homes can be more costly. West Berkshire Council is actively engaging with neighboring authorities to explore collaborative approaches to reduce care expenditures.
