London Daily

Focus on the big picture.
Monday, Feb 23, 2026

‘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
UK Police Officers Guarded 2010 Epstein Dinner Attended by Prince Andrew, Reports Say
US Trade Representative Affirms Commitment to Existing Tariff Agreements with UK and Other Partners
Activists at the Louvre hung a framed Reuters photograph of Andrew Mountbatten-Windsor slumped in the back of a car leaving a police station on the day of his arrest
Maggie Oliver exposes Keir Starmer using letters to close child rapists investigations
Kouri Richie's wrote a children’s book to help her sons grieve the death of their father. Now she’ll stand trial for his murder
New York Braces for Major Snowstorm With Up to 18 Inches Forecast and Blizzard Warnings Issued
Mexican Military Kills CJNG Leader Nemesio Oseguera Cervantes as Violence Erupts Across Jalisco
Metropolitan Police Deploys Palantir-Powered AI to Flag Potential Officer Misconduct
UK Parliament Rebukes Police Over Ban on Israeli Football Fans
Britain Emerges Among a Small Group of Nations Without a Religious Majority
UK’s Manufacturing Base at Risk as Soaring Energy Costs Weigh on Industry
Matt Goodwin’s Unconventional Campaign for Reform UK in the Gorton and Denton By-Election
US Military Movements in the UK Spark Speculation Over Preparations Related to Iran Tensions
UK Faces Significant Economic Risk From Trump’s New Global Tariff Regime
UK Defence Secretary Signals Intent to Deploy British Troops to Ukraine
UK Students Mark Lunar New Year as Universities Adjust to New Equality Compliance Rules
UK Government Weighs Removing Prince Andrew from Line of Succession After Arrest
Prince Andrew’s Arrest in UK Rekindles Scrutiny Over US Handling of Epstein Records
Trump’s Strategic Warning to UK Over Chagos Islands Deal Sparks Diplomatic Whiplash
Starmer Government Postpones Local Elections Affecting 4.5 Million Voters
UK Economy Remains Fragile Despite Recent Upturn in Headline Indicators
UK Businesses Face Fresh Uncertainty Following US Tariff Ruling
Reform UK’s Senior Figures Face Scrutiny Over Remarks on Women and Family Policy
UK Electric Vehicle Drive Threatened by Shortage of 44,000 Qualified Technicians
University of Kentucky Trustees Advance Academic Reforms and Approve Coliseum Plaza Purchase
Boris Johnson Calls for Immediate Deployment of UK Troops to Support Ukraine
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
North Korea's capital experiences a significant construction boom with the development of a new city district dubbed 'Pyonghattan'.
New electric vehicle charging service eliminates waiting times
Vox Populi confronts Justin Trudeau at Davos over vaccination policies
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
The mayor of Rotherham in Britain
One day after ex-Prince Andrew's arrest, British police are searching his former home, while U.K. lawmakers will consider introducing legislation to remove him from the line of royal succession
Vandana Shiva reminding the world that Bill Gates did not invent anything.
Italy's PM Giorgia Meloni highlights record employment and economic growth
UK Confirms Preferential U.S. Trading Terms Will Continue After Supreme Court Tariff Ruling
U.S. and U.K. to Hold Talks on Diego Garcia as Iran Objects to Potential Military Use
UK Officials Weigh Possible Changes to Prince Andrew’s Position in Line of Succession Amid Ongoing Scrutiny
British Police Probe Epstein’s UK Airport Links and Expand High-Profile Inquiries
The Impact of U.S. Sanctions on Cuba's Humanitarian Crisis: A Tightening Noose
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
United Kingdom Denies U.S. Access to Military Base for Potential Iran Strike
British Co-founder of ASOS falls to his death from Pattaya apartment
Early 2026 Data Suggests Tentative Recovery for UK Businesses and Households
UK Introduces Digital-First Passport Rules for Dual Citizens in Border Control Overhaul
Unable to Access Live Financial Data for January UK Surplus Report
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
UK ‘Working Closely with US’ to Assess Impact of Supreme Court Tariff Ruling
Trump Criticises UK Decision to Restrict Use of Bases in Potential Iran Strike Scenario
×