Cash-strapped council pins hopes on 'family-style' children's home

An image of a row on new built houses

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With council budgets across England under strain, some are looking for innovative ways to save money.

Behind the front door of a typical-looking house in a quiet residential street in Somerset, there’s something quite radical going on.

The property has been bought by Somerset Council and converted into a family-style home for children in care.

Three teenagers currently live there, supported round-the clock by a team of staff.

Manager Kelly Field says: “Dinner’s just similar to any other home. We all sit down together, we talk about what’s gone on in the day. There’s a little bit of fun, a little bit of laughter.

“This is a family home and everything in it is representing what a normal family home should look like.”

Somerset Council has teamed up with Homes2Inspire, part of a charity called Shaw Trust, to open a total of 10 of these homes in Somerset, with seven due to be up and running by September.

It’s a departure from what’s been the trend across the sector in the past few decades, which has seen fewer council-run residential children’s homes and more reliance on private providers – which can often mean young people are sent far away from where they live.

“The main aim of what we’re trying to achieve is to set up what I’d describe as normal family homes,” Ms Field says.

“There’s a lot of stigma attached to children’s residential homes and what they might look like and we need to try and beat that.”

There’s another reason behind this too.

Across England children’s services are under pressure, with growing demand and increasing costs adding to the financial strain councils are facing.

Somerset Council says opening their own residential homes is a cheaper long-term solution.

Buying and converting them has required investment of about £3m from the council, as well as a £2.9m grant from the Department for Education.

In the first year the council says it saved £2m in their day-to-day spending on children’s social care.

The Lib Dem council leader, Bill Revans, says: “We were having to find placements, though I prefer to think of them as homes, in other parts of the country and pay a huge amount of money for those when really if we can provide a cheaper and better solution here in Somerset that’s better for everyone.”

Somerset Council declared a financial emergency last year, and since then has made extensive cuts to services to try and avoid bankruptcy.

In January there was a huge campaign to save a local sports facility, Yeovil Recreation Centre, when its future was threatened because of the council’s finances.

Somerset Council reached an agreement with Yeovil Town Council, who have taken over the running and maintenance costs, to the relief of many who value the centre, but it has required council tax rises to protect that and other local facilities.

Handing over services to town councils is another way Somerset is trying to save money, with smaller authorities stepping in to keep services functioning, from funding CCTV provision to managing parks and open spaces.

But while Somerset Council has managed to balance its budget this year, the leader says next year already looks challenging.

“We are doing everything we can to make this council as efficient and productive as possible,” Mr Revans says.

“But the simple fact is a lot of councils are going to run out of money because the demand for our services and the price of providing those services is far greater than our income that’s coming in.”

The council has already undergone significant reorganisation, with five previous councils becoming one overarching authority for the whole county.

Now they’re looking to reduce the council’s wage bill by 25%, which will see around 1,000 posts go, and they’re selling off non-operational council assets including land, offices and some listed buildings.

The decisions the council has made aren’t without controversy, and have had an impact on local communities.

In South Somerset, the Chard Community Hub is a volunteer organisation that offers support to local residents with everything from food parcels and mending clothes, to helping people fill in forms for support they qualify for.

Chief executive Roz Hall, who used to work in local government herself, says they’re plugging gaps that are left behind when public services are squeezed.

“There isn’t anywhere else for them to go and find that help because all the public sector [has] disappeared in terms of that front face, so how do you access it?” she says.

“Who do you go to? There’s nobody there.”

The pressure on local authorities across England is widespread.

Social care for adults and children, as well as spiralling costs for housing services, has seen many sound warnings about the future financial viability of the sector.

Somerset Council has written to Prime Minister Sir Keir Starmer, calling for urgent action to prioritise local government.

Since taking office, ministers have attempted to strike a more collaborative tone with local government, promising to hand powers down from Westminster and provide more stability over funding.

A spokesman for the Ministry of Housing, Communities and Local Government says: “The government will fix the foundations of local government and work closely with the sector to do so.

“We will get local government back on its feet by doing the basics right, by providing councils with more stability through multi-year funding settlements, ending competitive bidding for pots of money and reforming the local audit system.”

But with the government already warning about pressure on public finances, there’s no simple fix for a sector where services have been under strain for some time, often leaving communities feeling the consequence.

Featured on BBC News: Cash-strapped council pins hopes on ‘family-style’ children’s home

James Stewart OBE
Trustee

James became a Trustee in 2021 after a 30 year career spanning the public and private sectors. He started in the banking sector, led Partnerships UK and Infrastructure UK, and then spent ten years at KPMG finishing as a Vice Chair and member of the UK Board.

Much of James’ career has been spent in the pursuit of improving public services and he has been involved in the development of many of the leading UK infrastructure projects and programmes including Crossrail and HS2. James believes that skills are a key enabler to the regeneration and growth of the UK economy and helping young people to have the opportunity to acquire skills and have the best chance of employment is his motivation for joining Shaw Trust. He is attracted by the Shaw Trust operating model and believes that social enterprises can have a greater role in delivering public services in the future.

Steve Shaw
Trustee

Steve is passionate about using his extensive HR Leadership experience to make a positive difference to the lives of others. Throughout a career spent at the helm of global matrix organisations devising and implementing expansive change initiatives, Steve has utilised extensive HR experience to deliver substantial revenue, growth, and organisational development.

Steve has represented HR in Board positions for more 15 years, most recently as Chief HR Officer for the Apogee Corporation, leading on HR, real-estate, and environmental strategies.

Steve brings experience of working within the charity sector, having in the past managed and held leadership roles within National Citizens Advice Bureau for 6 years and performed non-executive director roles for Presentation Housing Association for four years, with a focus on the vulnerable and disadvantaged. Steve believes that the seamless blend and contribution of paid employees and volunteers providing valued and sought-after services can bring unique challenges to the workplace along with passion and devotion to the delivery of quality. This generates a unique culture, with people that have insights, motivation and experiences that utilised well, make an incredible difference to society. Steve believes in the importance of rigour and best use of available funds to maximise an organisation’s ability to facilitate this. Steve’s expertise in organisational consolidation following acquisitions, business transformation, continuous improvement and career pathing for employees will all support the delivery of Shaw Trust’s Vision 2030: Strategic Directive.

Stephen Pegge
Trustee

Stephen is a career banker and has also been a board director of several institutions with a public interest including the National Centre for Work Experience, the Institute of Small Business Affairs and is a former chair of a charity founded by HRH the Prince of Wales supporting older people into economic activity.

He is part of the senior executive team of UK Finance, the leading financial trade association and leads on commercial finance, sustainability, dispute resolution and international trade. He chairs an advisory group for the UK government on creative industries and is part of a minister led boards on business finance and promoting female and black and ethnic minority entrepreneurship. Stephen is a director of the UK Business Angels Association, the trade association dedicated to promoting angel investing and supporting early-stage investment in the UK. He is also a director of the Business Banking Resolution Service, a voluntary ombudsman scheme for larger SMEs.

Stephen believes Shaw Trust makes a vital contribution and has an even bigger potential role to play in employability, education and support for people to realise their potential whatever their backgrounds over the next few years. He is looking forward to playing his part in supporting it and our clients and hopes his experience and connections can be useful to colleagues and the wider network involved in this vital work.

Kalm Paul-Christian
Trustee

Kalm is an investment banker working in the Financial Institutions Advisory Team at NatWest Markets. There he advises executive management teams to execute strategic and corporate finance decisions for sustainable growth.

He began his career with Rothschild & Co in the Global Financial Advisory division before joining The Social Investment Consultancy where he advised charities, social enterprises, corporates and investment funds on revenue diversification, social business models and impact evaluation.

As an advocate for Social Mobility, Financial Inclusion and Disability Rights, Kalm has been working in the field of accessibility since 2013, delivering projects from DFID, the Commonwealth Youth Council and National Lottery Community Fund.

He is a graduate of the University of Oxford, Fellow of the Royal Society of the Arts and a member of the Worshipful Company of International Bankers. He is also trustee of the Turn2Us and Switchback, a former school governor, and a junior adviser to Chatham House.

Lara Oyesanya
Trustee

Lara joined Shaw Trust in April 2021. Lara is a trustee of Plan International UK and a co-opted Member, Committee on Benefactions, External and Legal Affairs, the University of Cambridge advising the Vice-Chancellor.

The vision of Shaw Trust of a future where good employment is accessible to all in society irrespective of life circumstances resonates with Lara. Growing up in Nigeria, Lara was raised with strong values that included a great sense of social justice, responsibility, accountability, respect, and care for everyone in the community. Shaw Trust’s outlined outcomes for education and skills, children and young people’s services, and health and well-being are areas that Lara believes are essential for a fair and equitable society. This vision is a big draw for Lara as a Shaw Trust trustee and she hopes that the work of Shaw Trust will continue to promote social justice and mobility to address the causes and consequences of poverty in society.

Lara is a solicitor and general counsel in the financial services – digital payments sector, currently General Counsel and Chief Risk Officer at Contis, a contributing editor, LexisNexis Encyclopaedia of Banking Law, and a Consulting Editorial board member LexisPSL©. She is a Fellow of The RSA and ‘Business Woman of the Year’, 2018 FL National Awards. Ranked in The Lawyer Hot 100 2021 and the 50 Must-Follow Black Female Leaders 2020. Formerly, legal director at Klarna, senior legal counsel at Barclays and BAE Systems, a divisional counsel at RAC, a legal director at HBOS, and Group Head of Legal at Lex Autolease. She is a law graduate (LL.B Hons) from the University of Lagos with an LL.M in Comparative Company Law.

Mike Nussbaum
Trustee

Mike joined Shaw Trust in February 2016. Mike sits on the boards of RNIB, Guide Dogs, Vision UK, the Equality and Diversity Forum and supports numerous other charitable organisations.

Mike’s passion for social justice started young when he was involved in a wide range of social action programmes including chairing national youth organisations. Now, following more than 50 years of public service, Mike brings his blind lived experience to Shaw Trust. An active and committed volunteer Mike previously sat on the boards of RNIB, Vision UK, and the Equality and Diversity Forum. Mike is still an active member of the board for Guide Dogs and continues to support numerous other charitable organisations.

Mike is passionate about the added value which volunteers can bring to an organisation as well as the personal benefits of volunteering. Supporting Shaw Trust’s 1,000 person strong volunteer programme, Mike received a national ‘Year of the Volunteer’ Award for services to volunteering in 2005, and in 2008 The Open University awarded him an Honorary Doctorate.

Annamarie Hassall MBE
Trustee

Annemarie was appointed to the Board as a trustee in autumn 2019. An expert in her field, she was appointed MBE for services to children and families in 2011.

At Shaw Trust Annamarie draws on all of her sector experience of working with charity, private sector, local authority and central government to support our work by ensuring we are on the right track, doing what we have agreed, delivering on commitments and doing it well.

Volunteering her time as a trustee it was the values of Shaw Trust that most attracted Annamarie. The belief people should be at the heart of change; employment as a goal for everyone and the focus on skills; valuing education, training and skills for life.

To find out more about Annamarie connect on LinkedIn.

Deborah Dorman
Trustee

Deborah is a highly experienced strategic leader, with a passion for engagement and representation; ensuring everyone has a voice and that they can fulfil their potential.

Deborah is currently the Director of Group HR for Sainsbury’s, with extensive HR experience including strategy, organisational change, talent, learning, reward, inclusion, recruitment and engagement.
Deborah’s recent achievements include leading the design of customer-centric cultural transformation marrying humanity with performance edge, and spearheading the creation of a new inclusion strategy, which improved senior female representation within Sainsbury’s. Deborah has previously been an Advisory Board Member with Business in the Community Race Equality where she led the creation of the Youth Advisory Panel, to give young people a greater voice in improving employment and progression for ethnic minorities. Deborah has a passionate and open style with a focus on inspiring people to create strong relationships and deliver excellent results, whilst maintaining an environment based on professional integrity, transparency, and honesty. Deborah is looking forward to contributing to the important work of Shaw Trust, to support people to live decent and dignified lives. Deborah believes that everyone should have the chance to fulfil their potential and that access to education and employment are vital.

Audrey Coutinho
Trustee

Audrey joins as a Trustee in June 2021. Shaw Trust’s inspiring vision for a future where good, rewarding and dignified employment is accessible to all and the values of the Trust were the primary attractions for wanting to be a Trustee at the organisation.

The Trust’s focus on education and training one of the core enablers for an individual’s success in their lives aligns closely with Audrey’s beliefs, so when the opportunity to be involved in supporting this mission was available it was an easy decision to make.

Audrey has always admired and appreciated the commitment and ethos of the third sector and the critical role it plays in civil society with social justice at the heart of it. Having spent over two decades in the corporate world this as the right time to commit and support the sector and use her skills and experience.

Audrey is an accomplished senior executive with broad experience in designing strategy, delivering digital transformations and complex global programmes that support and serve employees and customers. She brings with her diverse experience in general management, audit and risk management and more recently as Chief Data Officer. She has a Masters’ degree in Business Administration.

Diane Côté
Trustee

Diane holds a number of board roles including at Societe Generale SA and X-Forces Enterprise.

She supports other charitable organisations and is a member of several associations and forums that promote Diversity and Inclusion in the workplace including the Women Network Forum.

Diane had a successful executive career in the UK and in Canada in the financial industry. She has featured in the ‘100 Most Influential Women in European Finance’ for the last six years.

In her last executive role as CRO at London Stock Exchange Group, she chaired the LSEG Foundation was an Executive Committee member and she also launched and championed the gender diversity agenda through the Women Inspired Network and lately the Inclusion Network.

Diane has a passion for helping young people from all backgrounds to be given equal opportunities to build their future, fulfil their potential and to support gender equality and minority representation at senior level in the workplace. Having been part of a minority group at senior level throughout her entire career, she understands the importance of embracing an all-inclusive culture.

Paul Baldwin
Trustee

After two decades working in the banking and finance industry, in 2009 Paul decided he would rather spend his time working on the causes that he is passionate about.

Since then he has pursued a portfolio career working with a select number of charitable organisations across a range of different sectors. His most significant areas of interest include, disability, education and skills, conservation and the environment, and animal protection, including as chair of Battersea Dogs & Cats Home. Paul first became aware of Shaw Trust while he was Chair of the Disabled Living Foundation (DLF) and was looking for a suitable merger partner to secure DLF’s long-term future. An immediate meeting of minds led to a successful merger in 2014, and Paul joined the Shaw Trust board in 2016. Other than working as a charity trustee, Paul is happiest when in the mountains: hiking, ultra-running, skiing, or teaching adaptive snow sports to people with a range of different disabilities.

Olly Benzecry
Chair of Trustees

Olly became our Chair of Trustees in February 2023. He is passionate about helping those with disadvantages to achieve their potential in employment.

In addition to being the Chair of Shaw Trust, Olly is a Trustee of Movement to Work and advises WithYouWithMe, an international provider of skills-based talent management solutions. He is Chair of the Corporate Development Board of the Natural History Museum (NHM) and a member of the Corporate Partnership Board of Cancer Research UK. Olly advises Faculty, a world leading AI provider, as well as being a CEO advisor more broadly.

Previously, Olly was Chair and CEO of Accenture, UK & Ireland

Chris Luck CB MBE DL
Group CEO, Shaw Trust

Chris joined the Trust in May 2019, after a distinguished career in the armed forces.

Chris had not planned to move into the voluntary sector, however, his life experiences, personal values and strong sense of purpose made him the perfect fit to lead Shaw Trust. Ensuring those we support are at the heart of everything we do, Chris has implemented a new organisational structure, reviewed our strategic direction and championed new initiatives, including the Shaw Trust Foundation and Shaw Trust Policy Institute supporting and advocating for social mobility through opportunity.

To find out more about Chris follow him on X or connect on LinkedIn.