Why costs vary in children's care services

Date01 November 2006
Published date01 November 2006
DOIhttps://doi.org/10.1108/17466660200600023
Pages50-62
AuthorJennifer Beecham
Subject MatterEducation,Health & social care,Sociology
50
1Reader in Social
Policy, PSSRU,
University of Kent,
Canterbury and
Reader in Mental
Health Economics,
CEMH, Institute of
Psychiatry, Kings
College London.
Journal of Childrens Services
Volume 1 Issue 3 November 2006
©Pavilion Journals (Brighton) Ltd
Abstract
This article identifies the broad reasons why costs in children’s care services might vary, illustrating them
with examples from research literature relating to England. An intentionally broad use of ‘costs’is
employed. The literature has been neither systematically nor comprehensively reviewed but does include
most of the recent work in the social care field. Articles have been selected to illustrate particular cost
associations. This article finds that there is as yet insufficient research into the costs, cost variations or
cost-effectiveness of children’s services. However, the findings provide guidance for decision-makers as
they try to understand how resources are currently deployed and why this might be.
Key words
costs; children’s services; research evidence; cost-effectiveness; value for money
Introduction
Costs for children’s care services vary; this is an
undeniable fact. It is, for example, rareto find
childrenshomes that cost the same and some foster
carers are paid higher allowances than others. It is
also rare to find children who receive the same type
and amount of services. A child receiving two hours of
social work support is more costly than a child who
receives just one hour. A child using two hours of
social work support and respite care is more costly to
support than one receiving just social work support.
Data that are routinely collected for England can
demonstrate the extent of cost variations between local
authorities. Again, looking at two of the most costly
children’s care services, the data show that average
costs per child per week for children’s homes provided
by local authorities appear to range from £801 to
£6,746. The range for foster care is similarly wide, from
£62 to £573 per week. These cost figures are just part
of a range of indicators collected from local authorities
and come with recommendations that local authorities
should explore ways of improving their ‘performance’
where their indicators fall within high or low bands
(CSCI, 2005a). Local authorities are therefore
encouraged to look at their cost data and explore why
their costs might be particularly high or low; they must
consider why costs vary.These exhortations to consider
howresources are used are not new. By the mid-1980s
value-for-money audits had become common in social
services in England (Knapp,1987). By 1999, central
government’s objectives for children’s services included
aspecific requirement to maximise the benefit to
service users from the resources available’ (DoH, 1999).
Today, the Every Child Matters agenda requires local
authorities to look carefully at how their resources are
currently deployed with a view to improving universal
services, providing more specialised help to prevent
problems and act early, and reconfiguring services
(HM Government, 2004).
In order to identify some of the reasons why costs
in children’s care services might vary, eight broad
domains can be identified:
nresource prices
nlocation
nprovider sector
nservice outputs
nworking with other organisations
nquality of care
nuser characteristics and needs
noutcomes.
Why costs vary in children’s
care services
Jennifer Beecham1

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