Children's care costs push council into overspend

Rising children's care costs have contributed to a council's predicted overspend of nearly £8m.

Peterborough City Council said some residential placements cost more than £10,000 a week per child, worsening its forecasted budget gap.

A report being presented to a scrutiny committee on Thursday said: "The current position continues to demonstrate the significant and ongoing financial challenges the council is facing."

If spending continues at its current pace, finance officers said they would need to dip in to the council's general fund to meet the shortfall.

A £5.2m overspend is predicted to go on placements for children in care, out of an overall £7.9m predicted budget gap for the 2026-27 financial year.

The council had budgeted for 429 looked-after children and 41 residential placements in the area, but it now has 444 looked-after children and 47 residential placements.

Of these, nine children are in accommodation that costs more than £10,000 a week.

The council is also forecasting a £2.7m shortfall in income from its secure children's home in Glinton, Clare Lodge, which was rated "inadequate" in February.

The average occupancy for the home, which accepts placements from other local authorities, is meant to be nine, but the current occupancy is just six after there was a temporary restriction on admissions.

Increased demand for Education, Health and Care Plans is also predicted to push the council into a £17.7m deficit in another part of its budget, known as the Dedicated Schools Grant (DSG).

The report pointed out that the government had stepped in to provide funding for most DSG deficits in March.

However, there were other areas the council was predicting to stay in budget, such as adult social care.

The report said the council was "seeking further efficiencies and savings" to improve its financial position.

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