London Daily

Focus on the big picture.
Thursday, Nov 27, 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
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
×