Issue - meetings

STOCKTON-ON-TEES BOROUGH COUNCIL

CABINET DECISION

PROFORMA

Cabinet Meeting ........................................................................ 16 October 2025

Consideration was given to a report on Powering our Future - Transformation Review: Therapeutic Residential Care for Children Experiencing Mental Health Challenges and Behavioural Distress.

The purpose of the report was to appraise Cabinet of the successful submission of a bid to the Department of Education’s Children’s Home Capital Programme 2025 to 2029. The bid would provide 50% capital funding to purchase two properties with a total of 3 places, for children experiencing mental health challenges and behavioural distress. The report outlined the proposal for the provision of two homes in Stockton-on-Tees following a comprehensive review, options appraisal and development of a business case. The objective was to address the need for specialist placements within Stockton-on-Tees for the most vulnerable children.

The proposal aimed to build sufficiency within the mainstream residential estate to avoid having to place children in external private provider care, which was often unregulated and costly, providing limited value for money. Providing residential care locally would support better outcomes for children in our care and help give them a better start in life.

The report was an important part of the approach to reducing inequality by prioritising support to enable more children to live within safe and inclusive communities.

The Council’s Mission Statement and wider Powering Our Future Programme, prioritised supporting more children to live in safe and inclusive communities that provide them with opportunities to thrive. This means working differently with communities, to harness the strengths that exist to build resilience and independence.  

In April 2024, Cabinet agreed to a review of Children in our Care as part of phase 1 of the Transformation Programme. This provided clarity on the scope and objectives for the review, in alignment with the Council’s Mission Statement.

The review led to a comprehensive understanding of challenges making use of research, data and intelligence. Findings and drivers for change along with options and proposals were summarised within the report.

Stockton-on-Tees Borough Council faced challenges with a high number of children in care (591 as at 24/09/25) of which there were 71 (as at 24/09/25) in external residential care. Of those children in external residential care, 16 were placed in high-cost placements (over £8,000 per week). The average cost was £11,300, with the highest being £16,000 per week. Most of these placements were unregulated. These were the most costly services and were often out of area.

Recent national, regional and local research undertaken by Newton Europe on behalf of the Association of Directors of Children’s Services (ADCS) validates the need for additional residential placements for children with complex needs. The average weekly cost for residential care had increased significantly between 2020 and 2024 from £4,000 per week to £6,000 per week. However, the cost of placements can increase significantly for those in unregulated provision to over a minimum of £9,000 with no ceiling price for children and young people with extremely high complex needs. The proportion of children in residential care had risen, and there was a notable increase in children entering  ...  view the full minutes text for item 55