London boroughs drive up Cheshire East care costs for children
By Belinda Ryan - Local Democracy Reporter 15th Sep 2026
Cheshire East is facing soaring costs to pay for its children in residential care because London boroughs are placing their young people in the North West where housing is cheaper.
At Monday's, September 14, meeting of the children's overview and scrutiny committee, Cllr Martin Edwards (Crewe, Lab) asked why other local authorities seemed to have places available to accommodate their cared for children when Cheshire East struggled.
Dawn Godfrey, executive director of children's services, said: "In terms of residential care… the North West, as a region, is a net importer of children from across the country, and… a massive importer from London.
"So, lots of London boroughs have children placed in the North West, and the reason being cheap housing…
"They buy cheap housing in the North West because it's cheaper than in London, and private companies – it's businesses, it's not charities – buy homes at a cheap rate, turn them into children's homes and charge us, as local authorities, a very hefty price tag.
"That's the reality of the placements market for children… and we're part of that market."
Mrs Godfrey told the committee the situation would improve because of national reforms relating to regional care cooperatives.
Cheshire East is part of the Cheshire Merseyside Regional Care Cooperative and she said 'the buying power of nine local authorities compared to just us on our own is huge'.
But the committee was told it would probably take about three years before Cheshire East would see the impact of the reforms.
Speaking after the meeting, for clarification, Cllr Laura Crane (Lab), cabinet member for children's services, said Cheshire East was not paying for the children from London, but Cheshire East's costs were increased for its own children because of the pressures on demand caused by the influx of children placed here by councils in London and elsewhere.
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