'Astronomical' care costs blamed for projected overspend by Stoke-on-Trent City Council leaders
By Phil Corrigan - Local Democracy Reporter 5th Nov 2026
Council leaders have blamed 'astronomical' care costs of up to £30,000-a-week for a multi-million pound projected overspend.
Stoke-on-Trent City Council is facing £10.8 million of net financial pressures in 2026/27 as of the end of September, up from £6.7 million in June, mostly due to children's and adults' social care.
The projected overspend in the children and family directorate increased to £6.7 million, despite the number of children in care falling by 14 to 1,044 over the quarter.
According to the council's latest financial report, market pressures and the increasing complexity of children's needs are driving up placement costs.
Meanwhile, the adult social care and all-age commissioning directorate is forecasting a £11.6 million overspend due to rising demand and the increased cost of care packages.
These overspends in social care are partially offset by projected underspends in other services, including a positive variance in the Hanford incinerator contract.
The overall overspend comes despite the council receiving £10.5 million of 'exceptional financial support' for 2026/27.
Cabinet members acknowledged the council's continuing financial difficulties at their meeting on Tuesday.
Councillor Sarah Hill, cabinet member for finance, said: "Most of the pressures relate to children's and adults' residential care.
"While we've got fewer children in care, some of the placement costs are astronomically high, and this is something that's reflected across the country. Also, when you have children with very high level needs that increases the cost of their placements.
"In adults, we have an increased number of younger adults with very high level needs who need support, as well as older adults who may need one-to-one care.
"All these have an impact on how much we spend. Meanwhile all our directorates will continue to control expenditure and identify any ongoing savings."
Council leader Jane Ashworth added: "The sooner the government get on top of some of these independent children's homes, and stop them being able to charge phenomenal amounts of money to look after a child – £20,000 or £30,000 a week – the better for everybody."
The council's plan for reducing overspends in children's services focus on safely reducing demand, improving fostering provision and increasing support to help families stay together where appropriate.
Councillor Sarah Jane Colclough, cabinet member for children's services, told the meeting that the strategy is about 'sustainable change, not short-term savings'
She said: "This report shows the stark reality of the position we're in. We can't ignore the financial pressures facing children's social care.
"But behind every placement cost there's a child that needs care and stability. Our responsibility is to make sure that we're spending public money effectively while improving the experiences of those children.
"This report shows why the transformation work within children's services is so important."
The meeting also saw cabinet members approve plans to procure a new contract for urgent foster placements.
Over the past two years, the council has had to find foster homes for 228 children within 24 hours.
Thirty of these children had to be placed in care homes instead, due to a lack of foster placements, at a cost of £2.6 million.
CHECK OUT OUR FREE NEWSLETTER!
5 TOP STORIES EVERY FRIDAY!
Click here to sign up: stoke newsletter
Share: