KENT County Council says it is owed more than £7million by the government to meet the continuing costs of looking after child asylum seekers.

A report says the council is out of pocket because the Government has failed to pay grants it is entitled to for the on-going costs associated with about 700 unaccompanied asylum seekers, despite protracted efforts to persuade two key departments to pay up.

The report, due to be presented to KCC’s Conservative cabinet next week says the council is facing a shortfall of about £3.6million this year.

But the overall sum outstanding is £7.1million, mainly money KCC has yet to recover from the Home Office and the Department for Children, Schools and Families for schooling and social care over two years.

The number of unaccompanied minors entering the UK has dropped sharply since the high point reached in the late 1990s. This year, KCC has had 152 cases assigned to it by the Border and Immigration Agency, which has replaced the Immigration and Nationality Directorate

However, KCC’s financial difficulties have arisen chiefly because the Government has in recent years not fully settled grant claims for the 700 unaccompanied minors it remains responsibe for.

Cllr Nick Chard (Con) KCC’s finance chief said: “All we are asking for is the money that we have spent and are entitled to. We are not looking to make a profit and I do not want this to become political. There are other authorities with very similar problems to us - we are not alone.”

Asked if the shortfall could impact on KCC’s budget plans for next year, he said: “The obvious thing is that if you do not get the money back for asylum, you have to take it from elsewhere or increase council tax but we do want that to become an issue.”