Enfield Council is grappling with a significant financial challenge, projecting a £3.3 million overspend in its children's services. This contributes to a larger £7.5 million overspend in the General Fund, according to a Finance Update presented to the Overview & Scrutiny Committee on Wednesday, 19 November 2025.
The council's financial difficulties mirror a broader trend across the UK, with many local authorities facing growing deficits, particularly in high-needs social care. According to the Local Government Association (LGA), 29 councils required Exceptional Financial Support (EFS) in 2025/26 to set a balanced general fund budget, with almost all having social care responsibilities.
The £7.5 million overspend is primarily driven by sustained demand in adult social care (£5.3m), children's services (£3.3m) and the provision of temporary accommodation (£1.8m).
To address the overspend, the council's Public Reports Pack states that a range of strategies are being implemented. These include demand management, contract reviews, and workforce planning, alongside initiatives such as a Placement Sufficiency Strategy, National Placement Policy and TA accommodation strategy to address homelessness, care leaver support, regional collaboration, cost control panels, and capital investment to replace high-cost vehicles.
To alleviate the financial strain, Enfield Council has been approved to utilise £30 million of capital receipts through an Exceptional Financial Support application. This funding will be directed towards the most significant pressures, safeguarding the council's reserves. The Finance Update noted that £10m of capital receipts is forecast to be applied to key overspends, protecting existing risk reserves.
