A new report from directors warns that social services in Wales face a £9 million shortfall.
The report by the Association of Directors of Social Services in Wales says that social services budgets are over committed as authorities across the country struggle to fund services for an increasing number of looked after children and older people.
Children's services are facing the greatest financial crisis, accounting for 75 per cent of the total overspend predicted for Wales.
The report says that a number of UK-wide programmes such as Children First and Sure Start have been very effective in identifying previously unmet need, and as a result the number of children requiring some form of social care has risen by 6.7 per cent between 1997-2000.
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