London Daily

Focus on the big picture.
Saturday, Nov 01, 2025

‘How can it cost £20k a week to look after one child?’: a care home manager explains

‘How can it cost £20k a week to look after one child?’: a care home manager explains

A worker in the sector claims local authorities cost taxpayers money by going for the cheap option first
Council bosses in England are sometimes having to pay seven-figure sums annually in order to house a child with complex needs. Many local authorities currently have at least one child whose care costs £10,000 a week or more, with providers increasing their prices further in recent weeks and blaming the cost of living crisis. Here, a care home manager* explains how care can cost £1m a year:

“When we meet with local authorities, they ask us to give a breakdown of costs. When they realise how we have to cost our services, they start to understand. The high costs are almost always for placements that are made in an emergency after a child has gone through 10+ other placements which have been bought on the cheap and haven’t been able to meet their needs. The biggest scandal is that local authorities always try and use the cheapest placement first. When children’s needs aren’t met, that’s what ends up costing the taxpayer a fortune.

“How can it cost £22,000 [a week] to look after one child? Let me explain. Imagine you own an empty three-bedded children’s home. It has a manager on £50k and three staff on £27k. The company also has a responsible individual (legal requirement), administrator, HR, finance, QA [quality assurance], referrals. Salaries attributed to the home are around £100k (est £2,000 a week).

“Now imagine that you are asked to accommodate a 13-year-old child. They must have three staff with them at all times. This means you have to employ six extra staff. There can be no other children in the home. The child needs to move in three days. The authority are desperate. You want to help. But the only way you can do so is by using agency staff (you don’t have six spare staff standing by). Two agency staff for a 24-hour shift at £40 an hour is going to cost £1,920 a day (that’s £13,500 a week). You’ll charge the LA [local authority] at cost and make no profit on this. There’s also property costs, vehicle, insurance, training, maintenance, equipment, adaptations, resources, food & activities for child and staff. There’s regulation, monitoring. You also have to factor in risks of unknown costs. For all that you add another £2,000 a week.

“Now let’s say that the council say they only want the child to stay for 28 days (this is pretty common). You don’t take the risk of recruiting staff with no guarantee of the arrangement continuing. This means you have to factor in the continued use of agency. On top of all this you have to operate your business with an estimation that for some parts of the year the home will be empty (there is never any guarantee of business) so you have to include a payment for vacancies. And while dealing with all this you are acutely aware that you are responsible for a high risk service. If anything goes wrong, despite your best efforts, your entire business could be closed down in a heartbeat. You will need to pay off debts and manage the risks and future.

“There will be a very small number of providers who may take the mickey but hardly any, as most of us are in this for the long haul and know the value of positive relationships with local authorities.”
Newsletter

Related Articles

0:00
0:00
Close
Glamour UK Says ‘Stay Mad Jo x’ After Really Big Rowling Backlash
Former Prince Prince Andrew Faces Possible U.S. Congressional Appearance Over Jeffrey Epstein Inquiry
UK Faces £20 Billion Productivity Shortfall as Brexit’s Impact Deepens
UK Chancellor Rachel Reeves Eyes New Council-Tax Bands for High-Value Homes
UK Braces for Major Storm with Snow, Heavy Rain and Winds as High as 769 Miles Wide
U.S. Secures Key Southeast Asia Agreements to Reshape Rare Earth Supply Chains
US and China Agree One-Year Trade Truce After Trump-Xi Talks
BYD Profit Falls 33 % as Chinese EV Maker Doubles Down on Overseas Markets
US Philanthropists Shift Hundreds of Millions to UK to Evade Regulatory Uncertainty in Trump Era
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
King Charles Strips Prince Andrew of Titles and Royal Residence
Trump–Putin Budapest Summit Cancelled After Moscow Memo Raises Conditions for Ukraine Talks
Amazon Shares Soar 11% as Cloud Business Hits Fastest Growth Since 2022
Credit Markets Flooded with More Than $200 Billion of AI-Linked Debt Issuance
U.S. Treasury Secretary Scott Bessent Says China Made 'a Real Mistake' by Threatening Rare-Earth Exports
Report Claims Nearly Two Billion Dollars in Foreign Charity Funds Flowed into U.S. Advocacy Groups
White House Refutes Reports That US Targeting Military Sites in Venezuela
Meta Seeks Dismissal of Strike 3’s $350 Million Copyright Lawsuit
Apple Exceeds Forecasts With $102.5 Billion Q3 Revenue Despite iPhone Miss
Israel's IDF Major General Yifat Tomer-Yerushalmi Admits to Act Amounting to Aiding Hamas During Wartime (Treason)
Shawbrook IPO Marks London’s Biggest UK Listing in Two Years
UK Government Split Over Backing Brazil’s $125 Billion Tropical Forest Fund Ahead of COP30
J.K. Rowling Condemns Glamour UK Feature of Nine Trans Women as 'Men Better at Being Women'
King Charles III Removes Prince Andrew’s Titles and Orders His Departure from Royal Lodge
UK Finance Minister Reeves Releases Email Correspondence to Clarify Rental-Licence Breach
UK and Vietnam Sign Landmark Migration Deal to Fast-Track Returns of Irregular Arrivals
UK Drug-Pricing Overhaul Essential for Life-Sciences Ambition, Says GSK Chief
Princesses Beatrice and Eugenie Temporarily Leave the UK Amid Their Parents’ Royal Fallout
UK Weighs Early End to Oil and Gas Windfall Tax as Reeves Seeks Investment Commitments
UK Retail Inflation Slows as Shop Prices Fall for First Time Since Spring
Next Raises Full-Year Profit Guidance After Strong Third-Quarter Performance
Reform UK’s Lee Anderson Admits to 'Gaming' Benefits System While Advocating Crackdown
United States and South Korea Conclude Major Trade Accord Worth $350 Billion
Hurricane Melissa Strikes Cuba After Devastating Jamaica With Record Winds
Vice President Vance to Headline Turning Point USA Campus Event at Ole Miss
U.S. Targets Maritime Narco-Routes While Border Pressure to Mexico Remains Limited
Bill Gates at 70: “I Have a Real Fear of Artificial Intelligence – and Also Regret”
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Amazon Announces 14 000 Corporate Job Cuts as AI Investment Accelerates
UK Shop Prices Fall for First Time Since March, Food Leads the Decline
London Stock Exchange Group ADR (LNSTY) Earns Zacks Rank #1 Upgrade on Rising Earnings Outlook
Soap legend Tony Adams, long-time star of Crossroads, dies at 84
Rachel Reeves Signals Tax Increases Ahead of November Budget Amid £20-50 Billion Fiscal Gap
NatWest Past Gains of 314% Spotlight Opportunity — But Some Key Risks Remain
UK Launches ‘Golden Age’ of Nuclear with £38 Billion Sizewell C Approval
UK Announces £1.08 Billion Budget for Offshore Wind Auction to Boost 2030 Capacity
UK Seeks Steel Alliance with EU and US to Counter China’s Over-Capacity
UK Struggles to Balance China as Both Strategic Threat and Valued Trading Partner
Argentina’s Markets Surge as Milei’s Party Secures Major Win
×