Cost of Care and Redirection of Resources

Developing a high quality alternative care system requires adequate funding and resources. In countries that are working to reform their care systems, efforts are needed to redirect financing from residential care options towards new initiatives that support parents, prevent family separation, and provide children with a range of family and community based care alternatives.

Cost-benefit studies of different forms of alternative care demonstrate that it makes good economic sense for governments to invest in family based alternatives rather than residential care. While costs may increase for a temporary period as countries make the shift to family-based care – for example to fund training of social workers, develop social welfare services and establish tracing and foster programmes – in the long run it costs less than keeping children in institutions where funds are required to pay salaries for staff, maintain buildings and provide food and other services. The bottom line is that for the cost of keeping one child in residential care, many more girls and boys can be supported within families.

Funding for care reform involves allocating (or redirecting) resources from institutional care towards a range of family-based care services, investing in the development of a competent social welfare workforce, supporting carers, and providing financial and practical support to children leaving care. It also means investing in programmes that tackle the factors that lead to family separation and children being placed in alternative care – such as poverty, unemployment, disability, health and conflict. This could include promoting access to basic health, education and housing services, developing social protection and financial assistance initiatives, and working to strengthen families through parenting education or counselling.

Governments also need to make a commitment to putting in place licensing and regulation mechanisms to ensure that funding of care is motivated by children’s best interest rather than the financial benefit of the provider – and that resources are directed towards families rather than institutions. Unfortunately in many countries, there are vested interests in admitting or keeping children within formal care (particularly residential facilities) for profit-making, and large numbers of private care facilities operate outside the control of authorities.

The literature in this section focuses on budget and cost analysis pertaining to children’s care, including preventive services to support family based care and the provision of a range of alternative care options.

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Financing for Better Care: Moldova 2023

Changing the Way We Care, UNICEF, the World Bank, 01 Jun 2023

In June 2022, hundreds of care reform leaders gathered to discuss the importance of providing adequate public financing to strengthen families and protect children in Moldova and across the globe. Conference speakers advocated for the provision of a minimum packages of services for families and children.

Webinar Recording: Launch of the Transition Cost Estimation Tool

Transforming Children's Care Collaborative, 17 May 2023

The purpose of this webinar was to launch the tool, provide background information on its development, the analysis that underpins it, and conduct a virtual walk through of the tool.

El propósito de este seminario web fue lanzar la herramienta, proporcionar información de antecedentes sobre su desarrollo, el análisis que la sustenta y realizar un recorrido virtual por la herramienta.

Transitioning Residential Care Cost Estimation Tool: Technical User Guidance Notes

Better Care Network, 2023

Throughout the Transitioning Residential Care Cost Estimation Tool, comments and tool tips have been provided for those Primary Users and for the basic use of the tool itself. This guidance provides additional context and explanation for Technical Users.

Family-Type Care vs Residential Care Costs: An analysis of the recent developments in government expenditure and the costs per child in family-type care and residential care

UNICEF, ECORYS Nederland, 01 Dec 2022

The objective of this analysis is to provide a better understanding of the government spending towards foster care and residential care services for children deprived of parental care, as well as to estimate the cost per child of such services. The analysis is intended to support UNICEF advocacy efforts towards the closure of residential care institutions in Moldova.

Case Story of Transition: Story International

Changing the Way We Care, Story International, 19 Sep 2022

This case story is meant to illustrate transition, the actors involved, the challenges and the success factors; recognizing that each transition is an individual process with different starting points, different dynamics and different evolutions. Story International’s transition example demonstrates the ups and downs of divesting from the orphanage model.

Guidance on Costing Child Protection Policies and Advocating for Increased Investment

Maestral, 01 Jun 2022

This Maestral document aims to provide guidance on how to provide credible evidence and support for an increased budget for child protection policies and plans of action.

The Unprotected: Annual spotlight on child protection funding in humanitarian action – 2021

Margot Thierry, Amanda Brydon, 20 Jan 2022

The Unprotected Series maintains an important spotlight on the resources needed and those available for child protection actors to provide essential and life-saving services across the humanitarian system.

The Unprotected: Annual spotlight on child protection funding in humanitarian action – 2021 (Executive Summary)

Margot Thierry, Amanda Brydon, 20 Jan 2022

Children make up 50% of those affected in humanitarian crises and are disproportionately impacted by conflict and crisis.

Cadrul Normativ Și Mecanismul De Finanțare A Sistemului De Îngrijire Alternativă În Republica Moldova

Changing the Way We Care (CTWWC), 21 Jul 2021

Cercetarea a vizat o analiză cuprinzătoare a cadrului juridic și de reglementare, conform Orientărilor ONU privind îngrijirea alternativă a copiilor, inclusiv o analiză a mecanismelor de finanțare pentru programarea serviciilor de îngrijire.

Reconstructing Children’s Rights Conversation #3: Confronting Colonialism, Racism and Patriarchy in Funding

CPC Learning Network, 01 May 2021

This session’s speakers discussed the funding ecosystem’s challenges and barriers and highlighted examples of how innovative funding mechanisms are reinventing donor giving by shifting resources and power closer to the children, young people, families, and communities they are meant to support.