Peterborough City Council is drawing up early plans to open its own small children’s home as it grapples with a growing shortfall in suitable care placements and mounting costs tied to looking after children in its care.
Members of the council’s cabinet are being asked to back the proposal at a meeting on Thursday. Officials say it has become increasingly difficult to find appropriate placements, particularly for older children and those with complex needs, and argue that a locally run home would help ensure “safe and high-quality” care closer to home.
If cabinet members approve the plan, council officers will move to develop a detailed business case for a house designed to accommodate up to four children. That business case would examine potential locations, projected costs, staffing needs, timescales, and overall value for money before any final decision is made.
Statutory Duty and Local Pressures
Peterborough City Council has a statutory obligation to provide care and accommodation for children who enter the care system. Katy Cole, the council’s Labour cabinet member for children and young people, said the authority is looking at ways to expand local options, improve the quality of care available, and ensure decisions are guided by the needs of children and young people.
Budget Overspend Linked to Care Costs
The push to establish a local home comes as the council faces significant financial strain. A council report issued last week found that rising costs associated with children’s care have been a major contributor to a forecasted £7.9 million overspend for the 2026-27 financial year. According to the report, some residential care placements are currently costing the council more than £10,000 per week for a single child.
Peterborough Council's Children's Care Cost Pressures
The proposal is still in its early stages, with Thursday’s cabinet meeting set to determine whether the council proceeds to a full business case. No decisions have yet been made on where such a home might be located or how much it would ultimately cost to establish and run.
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