London Daily

Focus on the big picture.
Thursday, Jul 02, 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 DEFENCE AND TECHNOLOGY STRATEGY TILTS TOWARD SOVEREIGN CAPABILITY AND INDUSTRIAL INVESTMENT
UK ECONOMIC POLICY OUTLOOK SHAPED BY LEADERSHIP TRANSITION AND FISCAL SIGNALS
STERLING STRENGTHENS AMID SHIFTING MONETARY OUTLOOK AND GLOBAL LABOUR MARKET SIGNALS
UK HPV VACCINATION PROGRAM NEARLY ELIMINATES CERVICAL CANCER DEATH RISK IN YOUNG WOMEN
UK EXPANDS PRISON SAFETY REVIEW AS GOVERNMENT SEEKS WIDER SYSTEM REFORM
UK DRIVES DIGITAL ASSETS STRATEGY WITH NEW STABLECOIN REGULATORY MODEL
UK TO EXPAND AI INFRASTRUCTURE THROUGH NEW EUROPEAN TECHNOLOGY PARTNERSHIP
UK LAUNCHES £15 BILLION DEFENCE TECH SHIFT TOWARD ADVANCED MILITARY SYSTEMS
CIVIL SERVICE FACES SHIFT IN POWER STRUCTURE AS REGIONAL GOVERNANCE PLANS EXPAND
WHITEHALL CONSIDERS MAJOR DECENTRALISATION PLAN WITH SECOND GOVERNMENT HUB IN MANCHESTER
UK TARGETS SERVICES EXPORT GROWTH IN TRADE TALKS WITH CHINA AMID GEOPOLITICAL TENSIONS
POLICE WATCHDOG PROBES OFFICERS OVER HANDCUFFING OF DYING TEENAGER IN HAMPSHIRE CASE
UK REGULATORS UNVEIL DUAL OVERSIGHT FRAMEWORK FOR STABLECOINS AND DIGITAL ASSETS
KEIR STARMER ANNOUNCES £15 BILLION DEFENCE TECHNOLOGY BOOST IN FINAL MAJOR POLICY MOVE
ANDY BURNHAM SIGNALS STRICT FISCAL RULES AS LABOUR LEADERSHIP RACE SHAPES MARKET OUTLOOK
POUND STERLING HITS ONE-YEAR HIGH AS BANK OF ENGLAND SIGNALS NO IMMINENT RATE CUTS
UK Government Confirms Rejected Asylum Seekers to Remain Amid Enforcement Challenges
UK-China Economic Talks Focus on Services Trade and High-Value Sectors
Buckingham Palace Revamp Plans Unveiled to Modernise Royal and Public Facilities
Two Dead After Light Aircraft Crash in Essex Field, Investigation Underway
Princess Diana Marked at 65 With UK Tributes Reflecting on Her Public Legacy
England Teachers Face New Pay Cap Rules for Academy School Leaders Under Education Reform
Dublin Security Alert Escalates After Stabbing and Reports of Transport Disruption
UK Government Faces Scrutiny Over £10,000 Asylum Living Cost Contribution Requirement
England Prepares World Cup Knockout Match Against Democratic Republic of Congo
Northern Rail Project Warned of HS2-Style Cost Risks by UK Parliamentary Committee
UK Tightens Asylum Rules as Most Rejected Applicants Expected to Remain in Country
UK Heat Health Alert Issued as Temperatures Expected to Exceed 30°C Across England
Halifax Brand to Disappear From UK High Streets in Lloyds Banking Group Restructuring
England Teachers Receive 6.6 Percent Pay Rise Over Two Years as Schools Warn of Budget Strain
UK Defence Spending Plan Sparks Budget Clash as Regional Infrastructure Projects Face Pressure
Inquest Continues in Northern Ireland into Death of Noah Donohoe in Belfast
UK Travel Industry Calls for Suspension of New EU Border System During Peak Holiday Season
Telegraph Media Group Acquired by German Media Firm in £575 Million Deal Completion
House of Commons Warns Northern Rail Upgrade Risks Repeating High-Speed 2 Cost Overruns
UK Transport Unions Warn of Summer Strike Action Over Pay Disputes
UK Health Secretary Calls Maternity Care Review a “Watershed Moment” for NHS Reform
Nigel Farage Faces Questions Over £270,000 Payment Linked to Gold Marketing Firm
Labour Government Faces Internal Division Over North Sea Oil and Gas Policy Direction
National Screening Committee Invites New Proposals for UK Health Screening Programmes
UK and China Hold Industrial Strategy Talks on Trade and Export Growth Opportunities
UK Defence Funding Gap Widens as £4.7 Billion Shortfall Puts Pressure on Spending Priorities
United Kingdom Faces Historic Demographic Shift as Deaths Forecast to Exceed Births in England and Wales
United Kingdom Introduces Major Motability Scheme Reforms Targeting £1 Billion in Long-Term Savings
Global Billionaire Numbers Rise 13 Percent Amid Artificial Intelligence Stock Boom
Body of Fifteen-Year-Old Boy Recovered from Manchester Reservoir
Major Rail Disruption in UK After Cows Stray Onto Intercity Tracks
UK Launches National Campaign to Reduce Water Consumption After Heatwave
Foreign Secretary David Lammy Raises Case of UK Woman Death with US Authorities
Shetland Islands Council Approves Subsea Tunnel Plans Linking Major Islands
×