Bath and North East Somerset Council revealed that it spends an astonishing £8 million each year caring for just ten children, highlighting the soaring costs in the privatized children’s care sector. Councillors are now demanding government intervention to halt the “profiteering” by private companies in this vital area.
At a full council meeting on November 20, Paul May, the cabinet member for children’s services, expressed strong concerns about private companies making excessive profits from vulnerable children’s care. “For-profit companies should not be making excessive profits from providing services to vulnerable children,” May stated. Nationally, he noted, sector costs have risen by 70% in the last five years.
The dramatic cost increases have placed significant strain on council budgets, which must balance spending with cuts or seek new income sources. Mark Elliott, cabinet member for resources, revealed his shock upon discovering that the ten most expensive care placements alone were costing the council £8 million. “That represents 20% of the total £40 million children’s services budget,” Elliott said, condemning the “excessive profiteering” that diverts resources away from children’s welfare.
Bath and North East Somerset is home to 2,500 children with special educational needs and disabilities (SEND) who have education, health, and care plans indicating the support they require. Of these, 125 attend out-of-area day placements, and 37 reside in residential homes primarily addressing autism and social, emotional, and mental health challenges.
The council spends £10.6 million on out-of-area day placements and approximately £1.5 million on taxi transportation for these children. To address local needs, Bath and North East Somerset plans to build a new 120-place special school at the Culverhay site, but it awaits government approval.
Currently, 230 children are in care in the area, with 27 placed in privately managed children’s homes. The council allocates £18.9 million to these provisions, with weekly placement costs averaging £9,174.
The debate, sparked by a motion from the Liberal Democrat group, called on the government to reform the social care system and cap private providers’ profits. May criticized the lack of regulation that has allowed private providers to dominate this supplier-driven marketplace unchecked.
Labour group leader Robin Moss supported the motion, citing central government’s interest in reform. Green councillor Saskia Heijltjes, a parent of a child with special needs, welcomed the intention but highlighted that the main challenge lies not in profiteering but in securing timely education, health, and care plans, as well as adequate local specialist provision.
Emphasizing the urgent need for change, May stated, “The Liberal Democrats are firmly committed to looking after the most vulnerable. Making profits from the care of vulnerable children is deeply objectionable. We need to explore local, not-for-profit alternatives. Our message to government is loud and clear: this sector needs to change.”
Council leader Kevin Guy had previously warned that without funding reforms from the current or next government, “it is only a matter of time before all local authorities in the United Kingdom go bankrupt.”