Increasing costs for children in care is pressurising East Sussex County Council finances.

A monitoring report, discussed by cabinet members on September 28, predicted a £16.8m overspend by the end of the 2023/24 financial year.

Much of this sum – £15.2m – seems likely to come from the Children’s Services budget, with £14.2m arising from costs associated with Looked After Children alone. The overall number of children in care in East Sussex increased from 664 at the end of the 2022/23 financial year to 677 in the first quarter of 2023/24.

The report says it is currently unclear whether this increase is a “surge in demand” or a “change in overall trend”. If the trend continues, the report adds, the total overspend could be set to increase by a further £5.6m by the end of the financial year.

The increase comes alongside a drop in the number of in-house and agency foster care placements available to the council, meaning more children are placed in external residential homes at a higher cost. The complex needs of some children require additional “support packages at further cost”.

The council’s chief executive, Becky Shaw, has said these pressures are not unique to East Sussex, with other authorities facing similar challenges.