£3m-plus Borders Council saving in ‘out of authority’ care bill revealed

Monday September 22nd 2025

Scottish-Borders-Council

Scottish Borders Council headquarters

Written by Local Democracy Reporter, Paul Kelly

Scottish Borders Council has saved more than £3m after reducing out of area care placements for children and young people with complex needs – with another new approach in the pipeline.

The local authority is committed to ensuring that every child and young person can live, learn, and be cared for within their local community.

But there are circumstances where this is not possible, and specialist provision is required.

Historically, the limited availability of local provision has meant that many young people have been placed out of authority, often at significant financial cost, and with negative implications for their well-being and family relationships.

At its peak in 2024, 72 children and young people from the Borders were placed out of authority, at an annual cost of £17 million.

This position was not financially sustainable and did not deliver the best outcomes for young people, many of whom experienced barriers to maintaining family connections and a reduced sense of belonging.

In October 2024, SBC approved Phase 1 of its ‘Out of Authority’ strategy.

This phase prioritised returning young people to local placements, expanding early intervention capacity, and reducing reliance on external provision.

During 2024/25, 16 young people returned from out of authority care, with a further 12 returning so far in 2025/26.


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These returns span a range of provision types, including residential care, specialist education, and complex needs services. Over the same period, nine young people have required to be placed in new out of authority placements.

These measures have already achieved significant reductions in costs, with current annual expenditure now projected at £13.7 million.

In December last year a second phase of the strategy within a staged intervention model designed to prevent and reduce the need for out of authority placements was launched.

Local capacity, however, remains limited. Wheatlands and linked provision at Lowood are the council’s only children’s homes and cannot accept emergency placements.

The council also leases Albert Place in Galashiels, providing semi-supported accommodation for four care leavers.

To address this, there is an urgent need to invest in sustainable, high quality local provision.

Now the council proposes to work in partnership with the Vardy Foundation in developing a programme to expand residential homes, supported accommodation, and specialist facilities for young people with complex needs.

The aim is to deliver 3 x four-bed homes (with emergency capacity) which will provide residential care for children and young people aged 10–21 years and one six-bed unit with concierge support.

Additionally, the aim is to provide two bungalows for specialist provision for young people with complex needs, including learning disabilities and high support requirements.

The Vardy Foundation is a charitable organisation established 30 years ago by Sir Peter Vardy, dedicated to improving the lives of children and young people.

The Foundation has developed a new care infrastructure model, which is currently being piloted across five local authorities. Work based on local needs in Clackmannanshire is also being taken forward.

A report, to be presented to full council on Thursday, September 25, states: “This model secures external investment typically sourced from local government and other public sector pension funds to deliver the infrastructure required upfront to provide homes for children who might otherwise be placed out of area.

“As part of the agreement Scottish Borders Council would identify suitable land which will be purchased by the investor who will then plan and construct the required infrastructure to an agreed standard.”

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