Dudley Council is set to invest significantly in new children’s homes to bring back 66 young people currently placed outside the borough. This move comes amid growing financial pressures on the council’s children’s services, which are forecast to overshoot this year’s budget by £6.7 million.
At the Social Care and Wellbeing Scrutiny Committee meeting on January 19, members learned that children’s services spending is predicted to reach £93.8 million, exceeding the original £87.1 million budget. The overspend is primarily attributed to rising numbers and high costs of external residential placements and services for children with special educational needs and disabilities (SEND).
To address this, Dudley Council plans to increase local residential care capacity. Councillor Wayne Little, cabinet member for children and young people, revealed that the budget for children’s services would rise by £12 million to £99.2 million in the new financial year beginning in April. Cllr Little explained, “We have to invest to save due to the high costs of external placements, rising demand, and the additional needs within SEND.”
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The council’s strategy includes reopening local residential care homes and boosting fostering services, aiming to bring children back to Dudley where they can be cared for closer to their communities. Cllr Sue Ridney supported this approach, stating, “It is wrong to place children far from their home area and expect them to be alright. Keeping them within our borough is better for their wellbeing and also reduces costs, which can be as high as £6,000 a week per placement.”
Currently, 66 children are placed in external residential homes, varying in cost depending on their needs. The council’s initiative is designed not only to improve children’s care but also to bring financial relief by reducing reliance on expensive out-of-borough placements.