Southend Council faces £13 million social care overspend

The forecast follows the first four months of the financial year with around 97 per cent of the pressure identified in children’s and adult social care.

Rising demand, more complex care needs and higher prices for specialist provision are driving the overspend. One children’s residential placement costs more than £1m a year, while eight others cost more than £500,000 each annually.

Social services' overspend was £17.04 million last year, with the council saying continued shortages of suitable children’s care placements across England meant demand was outstripping supply and driving increased spending.

Daniel Cowan, Labour leader of Southend Council, said: "No one is underestimating the challenge we face, but we aren't waiting to act."

"We've strengthened scrutiny of high-cost placements, challenged prices and care packages, increased oversight of spending and accelerated work to reduce demand and costs.

In children's services alone, that work has already delivered around £2.9 million in placement savings this year.

"But local taxpayers simply cannot continue carrying the can for social care markets that are fundamentally broken."

"Whether it is the escalating cost of adult care packages or children's placements costing more than £1 million a year, councils are being asked to absorb costs that simply aren't sustainable."

The council said it raised concerns about children's placement costs with Government earlier this year and will shortly be meeting senior officials in the department.

It said reform was needed to improve outcomes for vulnerable people and provide better value for taxpayers.

Paul Collins, Southend Lib Dem councillor for finance and Transport, said: "The stark challenge we face is not a lack of financial control but that statutory social care service demands are outpacing available budgeted funding and market reforms."

He said the council had reduced around £4m of pressures last year through demand management, improved oversight and efficiency measures.

Around 80 per cent of planned savings and additional income for 2026/27 has already been achieved, the council said.

The council will invest £8m in its Transformation Programme during 2026/27. This will support service modernisation, productivity improvements and reductions in ongoing costs.

It also plans to bring forward transformation projects, efficiency measures and service redesign to strengthen its long-term financial position.

The council said services residents rely on would continue to be protected, while each department was being asked to identify further savings and improve value for money.