Richmond Council Faces £3.885 Million Overspend Due to Homelessness and Children's Social Care Costs

Richmond Council is facing a projected overspend of £3.885 million, primarily due to rising costs in homelessness and children's social care, according to the Corporate Q2 Quarterly Monitoring report presented at a Finance, Policy and Resources Committee meeting. This overspend increases the drawing from reserves to balance the budget to £8.8m, compared to the £4.9m required when the 2025/26 budget was initially set.

The rising costs of homelessness services are contributing £2m to the overspend. Major factors driving these costs include the ongoing impact of the ending of pandemic protections, the volatility and affordability of private rented sector accommodation, the sustained impact of cost of living pressures, presentations from individuals facing and escaping domestic abuse, and the increasing unsustainability of hidden homelessness arrangements.

Councillor Miller, addressing the committee, stated that the overspend is driven mainly by ongoing pressures in homelessness and children's social care. She added that the council is taking decisive action through our transformation programme and early prevention initiatives to address those challenges.

The report, which was presented on Thursday, 20 November 2025, also highlighted that the overall projected overspend for the committee's remit is £327,000, comprising a £551,000 overspend in service delivery budgets and a £225,000 underspend in central items. The £225,000 underspend in central items is primarily due to higher than expected income from treasury investments and additional grant receipts. Income from treasury investments is forecast to overspend by £132,000, based on expected investment balances and predicted interest rate drops. The underspend on general grants is based on expected additional grant receipts for the Ukraine Tariff Grant (-£450,000) and the Extended Producer Responsibility (EPR) for packaging payment (-£353,000) from DEFRA.

At the meeting, the committee approved an additional budget request for the Richmond Community Fund Round 6, amounting to £1,108,451. This will be funded by Neighbourhood Community Infrastructure Levy (NCIL) contributions, sourced from the central contingency budget or other specified sources, according to the Additional Budget Requests report.

Councillor Gareth Roberts, Leader of the Council, chaired the meeting, which concluded with approval of additional budget requests and a review of the committee's work programme. The meeting was adjourned at 20:25.