Devon’s £98m care spending ‘not all value for money’

Decisive action taken in response to significant weaknesses

Devon County Council is not always getting value for money out of the roughly £98 million it spends a year on care placements for children.

The acknowledgement came from a senior officer in front of a committee of councillors tasked with scrutinising finances.

Julian Wooster, interim director of children’s services, claimed the care market nationallyis “broken”.

“There are particular issues in Devon which we need to address as a matter of urgency, though, and we spend £98 million annually on care placements, which is a big figure but not massively out of sync with others,” he said.

“The question for this audit committee is whether we are getting value for money out of that provision, and globally we are not, to be clear about that. We are not getting the right provision that makes changes in terms of costs and outcomes for children.”

Cllr Paul Hayward (Liberal Democrat, Axminster) questioned the difference in price between regulated and unregulated placements.

“The difference in price per week is huge, with unregulated costing £12,798 a week, as opposed to £6,000 in registered placements,” he said.

“From an audit perspective, we have to have an insight and interest in how we’re spending £335,000 a year on an unregistered placement.”

An unregistered placement tends to be one in which just accommodation is provided, but not care, meaning it falls outside the definition of a children’s home. They are also often used for emergency placements, which can affect their cost.

Mr Wooster added that the county boasted some “really good [care] provision” but overall there are issues.

Cllr Alan Connett (Liberal Democrat, Exminster & Haldon) said the key factor was outcomes for children but that it is important to know how resources are being used and to understand their effectiveness.

“I welcome your frankness that the £98 million isn’t all well-used, and recognise the wider national picture,” he said.

“I’m pleased you provided that response as it has opened up the conversation.”

The committee meeting followed the recent release of a report by Ofsted, which said Devon’s children’s services are still inadequate and youngsters are at risk of harm.

The watchdog, which is known for rating schools but also assesses child social services departments of councils, said the experiences of children supported by Devon County Council “remain poor.”

The service was first rated inadequate in March 2020, and Ofsted has revisited several times since.

It acknowledged some “increased stability” in the service, brought about by the appointment of Devon County Council’s chief executive, Donna Manson, in 2023, as well as some other senior leaders, and emphasised that the quality across the service had “started to improve from a very low base and widespread failures are beginning to be tackled”.

Its latest assessment took place last autumn, with a follow-up in January, and the report was published last month.

“For too many children, serious weaknesses remain, leaving children at risk of harm,” the Ofsted report said.

“This is particularly the case for children experiencing neglect and domestic abuse, those at risk of extra-familial harm and care leavers living in unsuitable accommodation.”

But it added that council leaders had taken “decisive action in response to significant weaknesses that were identified by inspectors in October 2024, and subsequently implemented some targeted plans that have supported positive change, including an improvement in the responses to contacts”.