Financially-stretched Derbyshire council chiefs are continuing to pressure the Government for a potential change in legislation and a cap on what it regards as crippling fees and costs from private providers for childcare services.
Tory-controlled Derbyshire County Council has stated that its biggest financial concern is for rising children’s services and adult education costs which it states is outside of the control of the authority.
Cllr Simon Spencer, deputy council Leader and cabinet member for Corporate Services and Budget, stated at the full council meeting on Wednesday, that the most important element under consideration with the council’s over-stretched budget is the increased demand on services particularly for the needy in society including the elderly and the young.
During a previous cabinet meeting, on November 23, he said: “The area I am most concerned about is children services and adult education costs, and this is outside the control of the authority, which is still continuing to rise.”
He added that this is a financial pressure that can only be addressed by legislative powers in the Government but the council will continue to work with the facts and figures as best it can.
Council Leader, Cllr Barry Lewis, has pointed out that one placement in children services can cost as much as £10,000 a week and these are unsustainable costs that need to be addressed by the Government who will continue to be pressured by the council on this matter.
In addition, The County Council Cabinet Member for Children’s Services and Safeguarding, Cllr Julie Patten, has stated that that more children are needing support and the demands are increasing and she said one of the placements was costing £12,000 a week which was something members of the public cannot even comprehend.
Cllr Patten criticised private providers to the council who she says are ‘making huge profits out of young people’s misery’ but she insisted the council will not turn its back on young children and their families.
The County Council Cabinet Member for Education, Cllr Alex Dale, has joined Cllr Patten and Cllr Spencer in calling for a cap on these huge fees from private providers and he also called for more funding from the Government while Cllr Lewis has argued there needs to be a change in legislation.
Cllr Dale said private providers were being allowed to make millions of pounds in profits and this money was not being properly reinvested back into supporting children’s services to bring costs down.
The Deputy Council Leader, Cllr Spencer, told the full council meeting services for the needy in society including the elderly and the young makes up as much as two-thirds of the council’s budget which is the biggest proportion.
He explained that demand is currently at a 10 to 15per cent increase and that pressure alone is going to continue in many ways.
Cllr Spencer said: “The real key pressure from my perspective is the pressure on children’s services and care and the pressure on these young people.”
He added that this figure is what you cannot control and it is one that authorities up and down the country have been saying needs to be addressed and the only way to do that is by imposing effective caps on costs.
A council report presented to the council’s cabinet stated that there was a continued demand for Children’s Services, Safeguarding and Education services and combined with rising costs this is resulting in a significant forecast budget overspend.
The report added that expenditure on placements for children in care or alternatives to care has continued to rise due to an increase in the average weekly cost of placements, a shortage of foster care places, and an increase in the number of children requiring support resulting in additional costs for Children’s Safeguarding Services.
It also stated that the budget forecast overspend on Children’s Services and Safeguarding and Education stands at £17.901m.
Derbyshire County Council has recently announced it has reduced a forecast £46.4m budget deficit for the 2023/24 financial year to a £33m figure but it has stated that rising demand and increasing pressures on the council’s budget mean it is still facing more tough cost-saving decisions like many councils across the country due to exceptionally high inflation rates, the impact of Covid-19 and the cost-of-living crisis.
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