Barnsley Council forecasts £8.9m overspend as social care costs rise
The council’s £281.7m budget for 2025/26 has been put under pressure by an increase in children needing care and a national shortage of foster carers
Barnsley Metropolitan Borough Council is predicting an £8.9m overspend this year, driven mainly by rising costs in children’s and adult social care, according to a financial report going to cabinet next week.
The council’s £281.7m budget for 2025/26 has been put under pressure by an increase in children needing care and a national shortage of foster carers. This has left the authority relying on expensive residential placements, some costing up to £8,800 a week. Children’s services alone is £7.9m over budget.
Adult social care is also £1m over budget, with higher costs for supported living and care home places. Home-to-school transport faces rising contract prices and demand, adding to a £1.3m pressure in the growth and sustainability directorate.
To meet existing commitments, the council has already used £5.9m from reserves that had been set aside for schools and grant-funded projects, on top of £600,000 used earlier in the year. While this does not directly cover the overspend, it highlights the strain on the council’s finances.
The report warns that ongoing pressures “will have a significant impact” on the authority’s medium-term financial plans. The Government’s latest funding review is expected to raise councils’ budgets by less than 1% a year, well below the rising costs of care services.
Council tax and business rates collection are also running behind target. The director of finance is asking cabinet to approve the write-off of £1m in historic debts that are no longer cost-effective to pursue.
A £1.5m saving in treasury management, due to higher-than-expected investment income, has helped offset some of the pressure. The housing revenue account, which covers council housing, is still expected to break even.
No cuts to services are proposed in the report, but the council says rising demand means difficult decisions may be needed when the new budget is set in February.
Capital spending is expected to come in £3.9m below plan this year due to delays on several projects, while two schemes, Milefield Primary School and the YMCA Youth, Place and Space refurbishment, require extra funding.