Council slammed with staggering bill for children's residential homes

The staggering bill for placing children in residential care homes is approaching the £10m mark for Dumfries and Galloway Council.

And private providers outwith the region are charging scandalous amounts of between £4,095 and £7,824 a week per child/young person – which is the basic rate without additional costs.

These shock figures have been laid bare in a new report as the local authority’s social work bosses try desperately to bring down costs, whilst also juggling their duty and demands for residential placements.

It was forecast that 28 children and young people would require residential kids’ home support this year at a cost of £8.52m.

However, within the first three months of this year, that figured had reached 33 – and the estimated fees had risen to £9.49m.

Council chiefs are prioritising the welfare of youngsters in care, but the current system is resulting in costs increasing at an alarming rate year on year.

In 2023/24, the total bill the council paid was just over £6m, which climbed to almost £8m in 2024/25, and for 2025/26 it is now heading towards the eight figure mark.

A report, due to be tabled at the council’s social work committee next Thursday, reads: “As at quarter one, 33 children are in residential placements, with the projected annual cost totalling £9.494m, representing an increase of £0.689m compared to the 2024/25 period.

“In terms of the forecast, the initial monitoring for 2025/26 is based on 28 continued placements from 2024/25 and forecast to be in placement for a full financial year, with a further five placements that have been placed since April 1, 2025 for a part year.

“There have been four placements that have ended in year. No growth for placements has been factored into the forecast.”

Following the closure of Cairnryan House children’s care home at the beginning of the pandemic, there is only one remaining children’s residential care facility in the region – Hardthorn Road in Dumfries.

This is why the cost of residential placements has skyrocketed as most youths are being sent to expensive providers outwith the region.

Extensive work has been done over the past year by council social work and housing officers to establish more children’s residential facilities within this region.

Work is progressing in partnership with a registered social landlord for the development of two children’s houses, one in the west and one in the east of the region. However, they are not expected to open until around mid-2028 if everything goes to plan.

In the meantime, an oversight group has been set up to try and find solutions to the huge demands for residential child placements.

The council report states: “Through active management and seeking to find better arrangements for children, identified planned ending of six placements within the next eight weeks at a weekly cost reduction of £28,086 is planned.

“Of the six, to date five 28-day notices have now been served to the private providers with these young people now either returned to family, secured own tenancy or living locally in supported accommodation.”