Cost of external childrens care increases in Darlington

A report to Darlington Borough Council’s Children and Young People’s Scrutiny Committee says the number of children requiring more complex care arrangements is increasing, particularly those needing residential homes with high staffing ratios or specialist solo placements.

Such placements are in short supply nationally and are significantly more expensive because smaller homes cannot benefit from economies of scale, the report says. The sharp increase in external residential care costs is not unique to Darlington and reflects a wider North East and national trend.

Nick Wallis, cabinet member for children and young people, said: “The complexity of children’s needs has become very marked and something that we are fighting all the time.” 

Despite the pressures, the council said the overall quality of residential and foster care available in the borough remained high.

Thirteen of Darlington’s 16 children’s homes are currently rated Good or Outstanding by Ofsted, while the other three are rated Requires Improvement.

All Darlington children placed with independent fostering agencies are also with providers rated Good or Outstanding.

The report says the council has reduced its reliance on independent fostering agencies by increasing the number of children placed with its own foster carers – a move which was praised as “really positive” by committee members during Monday’s meeting. 

In June 2026, 79 children were living with Darlington foster carers, compared with 63 in independent fostering agency placements. No children aged five or under were placed through an independent agency.

The number of independent fostering placements has fallen from 98 to 67 over the period examined by the council, while external residential placements have increased from 28 to 36.

The council said the increase in complexity was happening despite the number of children in care continuing to fall.

It said children requiring high staffing ratios increasingly needed smaller dual-occupancy homes or solo placements, with limited availability nationally.

Darlington’s relatively small population also makes it difficult to develop specialist solo placements at scale because there are comparatively few children requiring this type of care, the report said.

The council is working with providers to develop more small-scale residential provision locally, with two new dual homes expected to open over the coming year.

A further two council-operated children’s homes are also being developed and are awaiting Ofsted registration.