Study reveals financial cost of negative care experiences

Looked-after children who move placement repeatedly and have a negative experience of care can cost councils up to £32,755 more each year than their counterparts in stable homes, a report by Demos and Barnardo’s has found.

The report, In Loco Parentis, which is based on research with looked-after children, care leavers and foster carers, sets out two hypothetical “care journeys”.

“Child A” has a positive journey through care, with stability in housing and school arrangements. This reflects the 5-10 per cent of children in care who experience long-term, stable placements and supported transitions.

“Child B” experiences a poor journey through the care system, with several placement moves and an early departure from the care system. This represents the 5-10 per cent of children who experience instability and disruption in care.

The report found that a stable experience of the care system over 14 years costs £354,053. But an unstable experience over just half that time years costs £393,579, a difference of £41,526.

The report also considered the costs associated with adult outcomes after care.”Child A” who leaves care at 18 with good mental health and strong relationships, goes to university and finds a job could cost the state £20,119 between the age of 16 and 30.

But “Child B” who leaves care at 16, with poor mental health and no qualifications could cost the state £111,923 in the same time.

Demos is now calling on government to raise the care leaving age to 18, offer “a right to remain” in placements until 21 and a “right to return to care” for all care leavers up to the age of 24.

The report also urges government to introduce a new statutory duty on councils to offer family group conferencing, as well as better access to short breaks and placement support for foster carers.

To improve the well-being of children in care, the report suggests there should be mandatory mental health assessments for every child entering care and improved training on child and adolescent mental health for foster carers and residential care workers.

Julia Margo, acting director of Demos, said the care system must be de-stigmatised and viewed as a positive form of family support.

“Because we don’t trust the care system, we don’t use it as the effective parallel parent that it could be,” she said.

Martin Narey, chief executive of Barnardo’s, added: “Many believe that care is always second best to the care provided by parents. Contrary to popular belief, and for all its inadequacies, care does make things better and can and does create stable, nurturing environments for children.”

He urged councils and government to adopt a more proactive and positive use of care, “one where care is used earlier and more effectively so it becomes a means of real cost avoidance”.

“For many children care does work,” he said. “Yet there is still considerable room for improvement, and more importantly, this improvement is eminently attainable.”