The Looked After Children (LAC) stress test is an analysis of trends in the numbers, rates, and spending on LAC nationally, and how these vary between local authorities.

It has a particular focus on:

• Number and rates of LAC.
• Placement types (e.g. foster care, residential care).
• Distance of placements from local authority boundaries.
• Local authority spending on LAC services overall, and specifically on residential care.

The stress test recognises that local authorities face very different pressures. We use five indicators to identify those we think are experiencing the highest levels of stress in relation to LAC provision.

The first stress test was produced in 2014. This is the 2025 update using data from 2024. Its publication is especially timely given The National Audit Office’s (NAO’s) September 2025 report on managing children’s residential care (see our briefing on its findings here).