Sheffield City Council reveal £23.6 MILLION overspend as work to cut social care and housing costs continue
Sheffield Council is looking at ways to reduce spending after reports revealed that they are projected to go £23.6 million over budget in the coming months.
A council report on the 2025-26 quarter two budget revealed the estimated overspend, as councillors prepare to debate plans on how best to reduce expenses over the coming months.
Since the beginning of the year, they have already managed to cut back overspending by £4.6 million through improvements to adult social care planning and reducing time in temporary accommodation by 20 per cent when handling housing concerns. But more cost-cutting measures are now on the table.
The report explains: “As we move beyond Q1, the trend of persistent budget overspend continues to pose a significant challenge that must be addressed.
“We continue to recognise that every pound spent by the council is public money and we must ensure that we deliver clear value from our expenditure.”
Major areas of concern remain with adult social care spending and home to school transport, while plans to improve the delivery of housing services - particularly when related to temporary accommodation - are being proposed.
The report states that the implementation of AI and other modern technologies is helping to improve adult social care efficiency, as stronger planning intends to cut back what have been described as ‘non-essential and discretionary spending’.
Similarly, the report suggests greater planning when dealing with home to school transport, as more than 1,200 students are currently making use of taxis.
The report discusses ‘expanding the use of Personal Travel Budgets (PTBs) and travel training to promote independent travel’.
“At the same time, fleet planning is being refined to increase shared journeys and reduce reliance on costly individual routes,” it adds.
“These measures form part of a wider transformation programme that includes rigorous reviews of transport eligibility, route efficiency, and post-16 travel policy, providing assurance that robust plans are in place to manage the overspend and achieve sustainable savings over the coming year.”
Accommodation costs for children and adults with disabilities is also under review, as the report reveals that the council spends around £120,000 a week on accommodation for over-18s.
Meanwhile it states that costs related to care for disabled children should be ‘allocated to the appropriate agency and that only necessary services are delivered’ and suggests prioritising ‘kinship care’ in which relatives or close family friends take over childcare responsibilities.
Housing is the other focus, as according to the report, 46 families are currently in temporary accommodation while 133 individuals had been placed in temporary accommodation in September.
“The strategy remains focused on reducing reliance on expensive hotel and B and B placements by expanding in-house provision and supported housing, with the aim of ending routine B and B use within two years,” it continues.
Plans will be discussed on November 17 when the council decides how to deal with future overspending concerns.
Chairman of the finance and performance policy committee, councillor Zahira Naz, added: “We’re making real progress in managing our budget responsibly while continuing to deliver vital services for Sheffield residents.
“Our teams are working tirelessly to transform how we operate, and the results are already showing.
“We’re confident that with continued focus, we’ll end the year in a stronger financial position.”