Hillingdon Children's Services Faces £3.9M Overspend Due to Rising Care Costs and Accommodation Issues

Hillingdon's Children's Services are facing a significant overspend, with the latest figures projecting a £3.9 million deficit, according to a recent Budget & Spending Report. The report, detailed in the Public Reports Pack, was discussed at a meeting of the Children, Families and Education Select Committee on Thursday 25 September 2025.

Across the UK, local authorities are facing similar financial pressures. Many are struggling with rising demand for specialist services, a shortage of special school places, and increased reliance on costly independent placements. One report notes that English councils face a £2.3 billion funding gap in 2025/26, rising to £3.9 billion by 2026/27, primarily driven by increased demand for services for children with special educational needs and disabilities (SEND).

The overspend in Hillingdon is primarily attributed to the rising costs of care provision for looked after children, with demand outpacing the allocated budget. This is a primary factor contributing to a £2.5m overspend against the budget for services within the committee's remit for 2024/25. The report states that the pressure is nearly wholly related to care provision to looked after children as a result of demand outstripping the budget strategy growth for the service.

This pressure is compounded by temporary accommodation issues. A lack of general needs properties within the Housing Revenue Account (HRA) means vulnerable adults are remaining in supported housing longer than necessary. The service is supporting vulnerable adults in supported accommodation who are ready to move on to more appropriate tenancies, but the supply is not there to enable the service to step down these individuals.

Despite the overspend, the report indicates some progress in savings targets. For the services overseen by the committee, £2.372 million (48%) of the savings and interventions are being recorded as banked or on track for delivery, with a further £2.459 million (49%) being at initial stages of delivery. Alternative delivery methods are being considered where appropriate, with the savings ultimately expected to be delivered in full.

For 2024/25, £0.286m of savings are recorded as banked at outturn. For 2025/26, £2.372m of savings are recorded as banked or on track for delivery as of month 4. The specific savings and interventions are detailed in Table 4 and Table 8 of the Public Reports Pack.