Stoke-on-Trent City Council is facing an overspend of nearly £14 million for the year – largely driven by continuing pressure on children's services.

The number of children in care in Stoke-on-Trent rose to 1,085 between April and June, having previously fallen every quarter since 2023/24.

A report on the city council's finances shows that at the end of the first quarter of 2025/26, the authority was facing a projected overspend for the year of £13.7 million.

The children and family directorate accounted for £9.5 million – more than two thirds of the total – with £7.9 million relating solely to children's care placements.

A further £2.5 million of pressures were seen in adult social care and all-age commissioning. The forecast overspend comes despite the city council having received £16.8 million of 'exceptional financial support' (EFS) for the 2025/26 – an emergency bailout loan which will have to be paid back.

Council leaders' efforts to improve the authority's financial position have focused largely on reducing the number of children in care and bringing down the amount spent on costly private sector placements. But the finance report says the council is facing challenges in securing the anticipated savings.

The report states: "Whilst progress continues to be made against the improvement and delivery plan, challenges with market sufficiency and capacity within the placements sector particularly in relation to higher-cost placements means that the impact on the financial position is taking longer to materialise than originally forecast.

"There is also cost associated with meeting the recommendations of the recent Ofsted report."

The report lists various other measures the council is implementing to improve its financial position, including 'rigorous' scrutiny of al expenditure, maximising external funding opportunities and an ongoing review of staffing structures.

Cabinet members will consider the finance report when they meet on Tuesday.