Spiralling costs of children’s services pile on the pressure for Herts and Essex county councils

The County Councils Network (CCN) – which includes Hertfordshire and Essex – is calling for emergency funding for children's services nationally.

In September, Herts County Council (HCC) signalled it was heading for a £16.4m budget overspend by the end of the 2023-24 financial year in April.

Now research by the CCN reveals Hertfordshire is far from alone – with a survey of 41 county and unitary councils predicting a collective overspend of more than £600m.

One in 10 of these councils are “unsure” or “not confident” they can balance their budget this year, says the CCN, a cross-party organisation representing 20 county councils and 17 unitary councils, who collectively represent 26 million people.

They point to high inflation, rising demand and “broken” provider markets for children in care leading to high overspends.

In a bid to reduce its spending, HCC has already introduced a policy of “recruitment prioritisation” – freezing recruitment to all but essential roles. It has also earmarked £10m from contingency budgets that could be used to plug the gap if necessary.

HCC leader Cllr Richard Roberts hoped the council would be able to balance its budget, but he acknowledged: “This research confirms what we in Hertfordshire have known for a long time: high inflation and increasing demand for children’s services are placing an enormous strain on council finances across the nation.

“We are seeing the financial pressures mentioned by CCN borne out across our balance sheet, but thanks to our prudent financial planning and a range of savings, we are in a good place to balance our budget this year.

“We remain committed to protecting the most vulnerable in our communities but know that without reform and the creation of affordable provision nationally across children’s services, particularly for those with special educational needs and disabilities, the pressures will continue and get worse.”

Essex County Council’s chancellor, Cllr Christopher Whitbread, told the October meeting of the full council: “In children's services, we have seen a significant and worrying increase in pressures. This has led to a current projected overspend of £16m, a figure which has doubled in three months and presents a significant challenge, not only in terms of this year’s budget but for ensuring a sustainable model in future years.”