Question to the Department for Education:

To ask His Majesty's Government what plans they have to increase investment in children’s services and provide updated funding formulae to (1) direct resources according to deprivation-based need, and (2) account for changing levels of deprivation.

The government is aware the costs of delivering children’s social care are rising, which is why the department has already taken action and announced a series of additional measures:

• In January 2024, the government set out a support package for local government worth £600 million, including £500 million of ringfenced funding for children’s and adults’ social care services distributed through the Social Care Grant. Councils were advised to invest in areas that will help place children’s social care services on a sustainable financial footing. This includes investment in expanding family help and targeted early intervention, expanding kinship care and boosting the number of foster carers.

• Over financial year 2024/25, a total of £5 billion will be distributed to local authorities through the Social Care Grant, including a £1.2 billion increase from financial year 2023/24.

• Councils in England will see an increase in Core Spending Power of up to £4.5 billion in financial year 2024/25, or 7.5% in cash terms, an above inflation increase, rising from £60.2 billion in 2023/24 to £64.7 billion in 2024/25.

This additional funding illustrates our commitment to support councils in continuing to deliver high-quality services to vulnerable children and families.

But the department knows that rising costs are unsustainable and that whole system reform is needed. It is more important than ever that the department continues with the plans to improve and stabilise the children’s social care system. The department's ambitious strategy, set out in ‘Stable Homes, Built on Love’ will bring about fundamental reform, rebalancing local authority spending from costly acute services to effective earlier intervention, thereby improving outcomes for children and families. More information can be found here: https://assets.publishing.service.gov.uk/media/642460653d885d000fdade73/Children_s_social_care_stable_homes_consultation_February_2023.pdf.

When ‘Stable Homes, Built on Love’ was published, the department announced an additional £200 million funding for implementation. However, this is only part of the wider picture of spending on children’s social care reform. In total, across the department's programmes, almost £700 million has been committed to start delivering the reforms.

In ‘Stable Homes, Built on Love’, the department committed to work with the Department for Levelling Up, Housing and Communities to update, publish and consult on a new funding distribution formula. Departmental officials are working in partnership towards implementing an updated approach to distributing available funding for children and young people’s services, based on an up-to-date assessment of relative need in local authorities.

Whilst the government is not able to implement funding reform in this spending period, the department remain committed to updating the funding formula for children’s services to better direct resources to where they are most needed, and work will continue across government to that end.