Children’s social care services across the UK are under increasing financial pressure. As the number of children entering care continues to rise, so too do the associated costs — particularly for residential placements and specialist services. Many local authorities are struggling to manage these escalating demands within already stretched budgets. This case study focuses on Hartlepool Borough Council, a local authority currently facing acute financial challenges, and explores how a shift in strategy and the adoption of efficient management systems may offer a path toward long-term sustainability.
Hartlepool Borough Council has seen its children’s social care spending nearly double over the past five years — from £23 million in 2019/20 to a projected £46 million in 2024/25 (LocalGov). This sharp rise is driven by an increasing number of children entering care, as well as the high cost of residential placements, many of which are delivered by private providers.
One of the most pressing issues is the cost of external placements. Reports indicate that the top four private providers in Hartlepool charge around £12,000 per week per child, amounting to more than £624,000 per year per placement (Parallel Parliament). These costs are not unique to Hartlepool — they reflect a broader issue affecting councils nationwide, sparking calls for tighter regulation and greater transparency in how care providers operate and price their services.
In response, Hartlepool Borough Council has taken proactive steps to regain control of its children’s social care spending. One major initiative involves the development of two new council-run children’s homes, aimed at reducing dependence on high-cost external placements (Hartlepool Mail).
The council is also working to increase its local capacity for children with special educational needs (SEND), whose care often requires out-of-area placements — another significant cost driver. By expanding its own resources, the council hopes to deliver quality care closer to home, while reducing the financial burden on the local authority.
While infrastructure investments are essential, financial sustainability also depends heavily on operational efficiency. This is where care management systems like OVcare can make a transformative difference. By digitising day-to-day operations — from recording and reporting to HR and compliance tracking — such systems empower care providers and local authorities with real-time data, audit-ready documentation, and streamlined workflows. This not only helps ensure Ofsted compliance, but also enables better resource allocation, budget forecasting, and risk management. In a climate where every pound matters, technology can serve as a vital tool for accountability and decision-making.
Hartlepool’s experience is a clear example of the mounting financial pressures in children’s social care — and of the urgent need for smarter, more sustainable approaches. While building more council-run homes is a promising step, it’s only part of the solution. The broader challenge lies in creating a system that is both cost-effective and outcomes-driven.
This case underscores the importance of equipping local authorities with not just funding, but also the right tools to manage care efficiently. Platforms like OVcare, which bring together compliance, HR, and care documentation in one place, can play a key role in helping councils navigate the financial complexities of modern social care — and most importantly, deliver better results for the children who rely on these services.
References
LocalGov. (2024).
Council being ‘slowly bankrupted’ by social care charges. Retrieved from:
https://www.localgov.co.uk/Council-being-slowly-bankrupted-by-social-care-charges/61538
Parallel Parliament. (2024).
Children’s Social Care – Ministerial Extracts. Retrieved from:
https://www.parallelparliament.co.uk/debate/2024-11-18/commons/commons-chamber/childrens-social-care/ministerial-extracts
Hartlepool Mail. (2024).
Extraordinary council meeting approves £700,000 plans for new children’s homes. Retrieved from:
https://www.hartlepoolmail.co.uk/news/people/extraordinary-hartlepool-borough-council-meeting-approves-ps700000-plans-for-new-childrens-homes-4447388
BBC News. (2024).
Hartlepool Borough Council eyes expansion for special educational needs provision. Retrieved from:
https://www.bbc.co.uk/news/articles/c5y5y1ll2xjo
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