Councils could save millions through early child intervention

28 Jun 10
Millions of pounds could be slashed from the cost of keeping children in care if councils intervened at an earlier stage, according to a report published today
By Lucy Phillips

28 June 2010

Millions of pounds could be slashed from the cost of keeping children in care if councils intervened at an earlier stage, according to a report published today.

The think-tank Demos found that delays and indecision by children’s services departments cost £32,755 per child each year more than a positive experience in the care system. Poorly looked after children also went on to cost the state £91,805 more in adulthood than those looked after in stable environments, often experiencing unemployment and mental health problems.  

The report, called In loco parentis and funded by children’s charity Barnardo’s, compares two hypothetical ‘care journeys’, one good and one bad.  It concludes that there were ‘considerable’ financial savings if a child was taken into care without delay and the number of placements was kept to a minimum. Savings came both from improved outcomes later in life and reduced administration and staffing overheads.  

Martin Narey, chief executive of Barnardo’s, said: ‘We must urgently adopt a more proactive and positive use of care, one where care is used earlier and more effectively so it becomes a means of real cost avoidance.’

The researchers also call for the care leaving age to rise from 16 to 18 and for vulnerable children to be given more support in the transition to adulthood.

The findings come as demands on children’s services intensify against an inevitable squeeze in resources.  The recent case of Baby Peter led to a 40% surge in court referrals to take children into care, while between 1994 and 2006 there was a 100% increase in total expenditure on children looked after by the state.

There are currently almost 61,000 children in care in England and Wales.

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