COUNCILS have warned that the “broken” social care market is driving them into bankruptcy.

New data revealed by the Special Interest Group of Municipal Authorities (Sigoma), representing 47 urban councils in the north of England, the Midlands and on the south coast, has revealed that its members now spend an average of 29 per cent of their budgets on children’s services, up from 15 per cent in 2011-12.

As the number of children in care has soared by 30 per cent in the last decade to 83,430, councils say that funding cuts, the spiralling costs of specialist placements and the disproportionate impact on deprived councils such as Blackpool, which now spends 45 per cent of its budget on children’s services, mean that urgent government intervention is required.

Sigoma said that, with £160 million overspend by London councils and one in five of its members considering issuing a section 114 bankruptcy notice next year, it is time for the government to act.

Branding the social care market “broken,” Sigoma chairman Sir Stephen Houghton, who is also the Labour leader of Barnsley Council, said: “The Autumn Statement is one of the final opportunities to give our members the support they need for the next year and we urge the Chancellor not to miss this opportunity by providing additional funding for children’s services.”

Unison head of local government Mike Short said: “Children’s social care is complex, important work providing a lifeline for a generation.

“But the overwhelming pressure on staff means there are huge vacancy levels, causing local authorities to rely on expensive agencies to fill the gaps.

“The Chancellor must provide significant extra funding for all councils to tackle these costs, without forcing cuts to be made elsewhere, so children get the support they need.”

The government was approached for comment.