Council seeks 'clear actions' to cut £6m overspend

Rotherham Council is facing a £6m overspend as it struggles to fund social care and tackle issues with bin collections, councillors are to be told.

There were an increasing number of children with complex needs in high-cost residential provision, according to a new report.

In adult social care, the biggest overspend was working age adults with learning disabilities and high-cost needs, meanwhile the waste removal budget was hit when over 87,000 household bin collections were missed in 2025, it stated.

At a meeting next week, councillors will be told the authority should be able to reduce the overspend, but "clear actions" must be identified and carried out "at pace for maximum effect".

According to the report the cost of children in care was one of the authority's biggest budget pressures.

"The mix of placement types, limited placement options, increasing unit costs and the growing complexity of children's care needs continue to present significant challenges," the report said.

"External residential placements remain the main driver of the placement budget pressures, with 48 children in external children's homes in July against a budgeted 40.

"This pressure is further compounded by the increasing number of children placed in high-cost residential provision - at a weekly cost of £10,000 and above - due to the complexity of their needs."

The council said it regularly reviewed external residential placements to reduce costs and aimed to place more children in homes owned by the authority.

The adult social care budget was also under pressure because of the high demand and complexity of care packages, the report stated.

"The area of biggest overspend is working age adults with learning disabilities," it said.

"The overspend is largely made up of a small number of individuals with high-cost needs, including out-of-borough placements that cater for individuals with the most complex needs.

"Work is under way to understand the drivers behind these costs, given the council spends more per working age adult than the national average."

Agency staffing and overtime were also higher than the budget and the council was continuing to look at difficulties with recruitment, according to the report.

In February last year, the council said it would spend £4m on replacing half its 32 refuse collection vehicles, but the lorries did not arrive until March this year.

The waste service was overspending on transport as it continued to use "a high number of hire and spare vehicles", the report found.

Officers said the council's budget should improve with the arrival of the new bin lorries, but the impact would continue into the 2027-28 financial year.

The council said it was looking to save money with new, more efficient, collection routes, but the bin collection problems in autumn last year had affected that.

The findings of the report are due to be considered by the council's cabinet next Monday.

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