Bath and North East Somerset Council has revealed it spends a staggering £8 million annually on the care of just ten children, highlighting a severe financial strain on local services. This revelation has fueled calls from councillors for the government to intervene and halt what they describe as private companies “profiteering” from vulnerable children’s care.
Councillor Paul May, cabinet member for children’s services, addressed the full council on November 20, emphasizing that profit-driven companies should not be making excessive gains from services intended for vulnerable children. He noted that nationally, costs in this increasingly privatized sector have soared by 70% over the past five years.
This sharp rise in expenses has heavily impacted council budgets, forcing difficult decisions and resource balancing. Mark Elliott, cabinet member for resources, expressed alarm at discovering that the council’s top ten most expensive children’s care placements consumed £8 million — roughly 20% of the entire £40 million children’s services budget.
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“These excessive profits divert crucial funds away from children and into private pockets. That is simply unacceptable,” said Elliott.
The council supports around 2,500 children with special educational needs and disabilities (SEND) who have education, health, and care plans (EHCPs). Of these, 125 attend out-of-area day placements and 37 reside in residential homes, primarily due to autism and social, emotional, and mental health needs. The council spends £10.6 million on these out-of-area day placements, alongside approximately £1.5 million on transportation costs.
In response, Bath and North East Somerset Council plans to construct a 120-place special school at Culverhay to provide local education options for these children, although government approval is still pending.
Currently, the council looks after 230 children in care, with 27 placed in privately-run children’s homes. The weekly average cost per placement is £9,174, totaling £18.9 million annually for care provision.
Councillors debated a motion tabled by the Liberal Democrat group urging government reforms to social care, including capping private providers’ profits. Councillor May criticized the lack of regulation that has allowed private providers to dominate a supplier-driven marketplace unchecked.
Labour group leader Robin Moss expressed support for the motion, acknowledging growing central government interest in reform. Green party councillor Saskia Heijltjes, who has personal experience with special needs, welcomed the motion’s intent but pointed out that inadequate support in securing EHCPs and local specialist provision poses greater challenges.
Concluding the debate, Paul May affirmed the Liberal Democrats’ commitment to protecting vulnerable community members, insisting that profit should never come from children’s care. “We must find alternative, local, not-for-profit solutions. Our message to government is clear: this sector must change.”
Council leader Kevin Guy has previously warned that without urgent government funding reform, all UK local authorities risk financial collapse.