MILLIONS of pounds more than expected have been spent by Reading’s council-owned company in charge of providing children’s services such as fostering in Reading.
Brighter Futures for Children (BFfC) runs children’s services in the town on behalf of Reading Borough Council. Services the company provides include looking after children in care, supporting children with special educational needs and disabilities, and providing support through education, health and care (EHC) plans.
BFfC was created in 2018 as a wholly owned subsidiary of the council, after its children’s services were rated ‘inadequate’.
Figures revealed by BFfC, show the organisation’s efforts providing such services has resulted in a £9.244 million overspend, up to the last financial year.
Because BFfC runs children’s services on the council’s behalf, it receives funding in a contract with Reading Borough Council each year. The contract for the 2023/24 financial year, which ended in April, was £44.933 million.
However, BFfC actually ended up spending £54.177 million, making up the £9.244 million overspend. Of that figure, representatives on the council’s policy committee were asked to pay BFfC £9.139 million. That amount excludes approximately £105,000 in costs for the accrual of absences.
These figures were referred to in a report into the council’s 2023/24 budget, presented by Darren Carter, the council’s director of finance. Mr Carter stated that there was a 14 per cent increase in the number of children looked after from March to December 2023, which contributed to care pressures.
He also pointed out that there was a £8.528 million on childcare placement costs alone. The cost of placements varies depending on the amount of care required.
BFfC information states that there were 139 children living in external placements in 2023/24, which includes those living in children’s homes and receiving foster care, with that number including disabled children but excluding unaccompanied children. Of that number, 32 children were in placements that cost £200,000 in the last year.
Those 32 placements cost £10.436 million (56.5 per cent) of the total spend on looking after children of £18.469 million.
The council’s policy committee unanimously agreed to pay BFfC for £9.139 million of the overspend.
A spokesperson for BFfC said: “We are working hard to keep within budget and have been faced with some exceptional financial challenges, with pressures on the social care sector being experienced nationally and the cost of placements to protect children in care increasing.
“We are committed to children and providing them with the care and support they require as and when they need.
“A plan is in place to combat the rising costs and make savings where possible, including being part of Local Authority Fostering South East to increase the number of Foster Carers we have locally providing our children in care with stable loving homes.”
Councillors agreed to cover the overspend at the policy committee meeting on Monday, July 8.
