Research by the National Children's Bureau showed the number of children's home placements costing £10,000 or more per week – the equivalent of over £0.5m per year – increased from 120 to 1,500 between 2018 and 2023. 

Cllr Arooj Shah, chair of the LGA's Children and Young People Board, said: ‘The astronomical costs of care placements mean there is less money available for councils to spend on the earlier help children so desperately need. It could not be clearer that we need to do things differently.'

The report said complexity of need was being driven by the impact of the pandemic and historic cuts to early help, rising levels of complex autism, mental health challenges and high instances of self-harm.

It said children were coming into care later and at a greater point in crisis than ever before with opportunities to intervene earlier being missed, from Sure Start-style family support to special educational needs provision and mental health support. 

They also found shortages of appropriately trained, trauma-informed workers and insufficient clinically led models of care in homes.

The LGA called on the Government to use the Spending Review to ensure all councils receive sufficient funding to invest long-term into family help, child protection and child in care and care leaver services and develop a cross-government strategy for children, young people and families to ensure all partners are working towards a shared ambition.