Children sent to care homes outside Bristol in placements costing more than £5,000 a week

The number of children being sent to care homes outside Bristol is on the rise, with the average placement costing taxpayers more than £5,000 a week. Fees for out-of-authority placements are rising and now cost five times more than sending a child to Eton College.

A shortage of childcare homes in Bristol, coupled with increasing demand, means the council is relying on expensive placements outside the city. The council spent £23 million last year on out-of-authority placements for children in care.

The number of children in foster care outside the authority is also on the rise, rising from 55 in May last year to 85 in March this year. Councilors warned the costs had become “absolutely huge”, at a meeting of the strategy and resources policy committee on Monday 17 June.

Read more: Caring for just 10 looked-after children costs Bristol council £160,000 every week

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Conservative councilor John Goulandris said: “I know action is being taken and I know the situation is improving. But there is some urgency here because this figure is absolutely huge. I’m not sure there’s much more we can do about it, but we have to keep an eye on it because it’s a pretty big thorn in our side.”

The children and family service takes up over a fifth of the council’s day-to-day expenditure. Last year the service spent £110m, while the total revenue budget was £512m. Out-of-authority placements are the biggest cost to the service and cost more every year.

Acting finance director Tony Kirkham said: “It is a difficult financial position for the council and this is a significant risk. There are a number of investment schemes to save that have started but it takes some time to get registered for residential houses. The department is looking at all available options.”

The council plans to open two new children’s homes in Lockleaze. Both are three-bed houses costing £442,500 but will only offer placements for one child each. Across the country, many private children’s homes are run by companies that make “high levels of profit”, according to a recent cabinet report, with an average operating margin of more than 22%.