The Northern Territory Government has been accused of wasting millions of dollars each year keeping children in emergency protection placements, which cost up to five times more than foster and kinship care.

Key points: Government figures show 364 of the 1,049 Territory children in care are in emergency placements

Government figures show 364 of the 1,049 Territory children in care are in emergency placements The average cost for a child in "purchased home-based care" is $78,000 per child, per year

The average cost for a child in "purchased home-based care" is $78,000 per child, per year Emergency placement providers argue their charges reflect the real cost of caring for high-needs children

Indigenous legal services think it's outrageous that emergency placements, which the Government calls "purchased home-based care", are the most used.

The latest Territory Government figures show more than a third (364) of the 1,049 Territory children in care are in emergency placements.

"It's supposed to be a short-term crisis accommodation for the placement of children with day-care providers, for potentially one to two nights," said the North Australian Aboriginal Justice Agency's (NAAJA) principal legal officer, David Woodroffe.

"But what we're actually seeing is children being placed in this situation for many years.

"So it shows a crisis in child protection, and what I would consider is basically Government-funded couch-surfing."

The Territory Families Department has provided the ABC with figures that show the average cost for a child in purchased home-based care is $78,000 per child, per year.

It pays foster and kinship carers between $14,000 and $38,000 a year per child.

NT annual placement costs per child 2016-17 Foster/kinship care: $14,680-$38,680

Foster/kinship care: $14,680-$38,680 Purchased home-based care: $78,000

Purchased home-based care: $78,000 Residential care: $337,200 (Source: Territory Families)

"It's costing the community a lot of money. We know there was $29 million spent on purchased home-based care last year. Just for the placement of four children in one house for a particular month it cost $77,000 for one month," Mr Woodroffe said.

"If you just think, in one Aboriginal community, what we could do with $77,000 is support families with looking after children, and getting people to actually find kinship carers."

NAAJA is hoping the Royal Commission into the Protection and Detention of Children in the Northern Territory will recommend later this month that money being spent on emergency placements should be diverted to better supporting foster and kinship care.

"It's easier to put money into crisis placements, rather than actually working in partnership with Aboriginal communities to support families. But that's the way the Government will get real savings," Mr Woodroffe said.

Companies sub-contract out emergency placements

Private companies that provide home-based child care are now offering emergency child protection placements, which they subcontract out to individuals and families.

Emergency placement providers are not subject to the same Government regulation and training as other care providers.

"There's a much lower accountability in the sense of the lack of training. Residential care workers have particular training modules through Territory Families and there's nothing similar for day care providers," Mr Woodroffe said.

NT expenditure on care 2016-17 Kinship care: $4 million

Kinship care: $4 million Foster care: $7 million

Foster care: $7 million Purchased home-based care: $29 million

Purchased home-based care: $29 million Residential: $37 million (Source: Territory Families)

Ninety per cent of Territory children in care are Indigenous, and Mr Woodroffe said NAAJA had received many complaints from parents about emergency care placements.

"It's very upsetting when we have Aboriginal children living in households where there's limited English spoken by the families. For them it's such an alien environment," he said.

"We see situations of many children who run away during the day to be with family or friends, and basically they're just returning at night to sleep."

'We offer good care, and it's safe care'

But emergency placement providers argue they are only charging the Government the real cost of caring for high-needs children.

Heather Havens says the Territory Child Care Group's emergency placements reflect the real cost of providing care. ( ABC News: Jane Bardon )

The Darwin-based Territory Child Care Group provides more than 100 placements subcontracted to people who care for children in their own homes.

"One of the main differences is the fact that, our educators, they are paid, and I would say paid properly. And they're better resourced than foster carers," the group's director Heather Havens said.

"Foster care and kinship care is basically a voluntary position."

She would not reveal the organisation's fees, but said that unlike with other care-placement types, the money the Government paid up front covered all support services provided to the children.

"It covers food, clothing, entertainment, tuition for sports and any educational needs. Medical is covered 100 per cent. The educators are expected to take them to dance, music, whatever it is they're interested in," Ms Havens said.

"You don't just want to keep these children alive — you want them to progress."

NT children in care by placement type 2016-17 Purchased home-based care: 364

Purchased home-based care: 364 Foster: 259

Foster: 259 Kinship: 221

Kinship: 221 Residential: 115

Residential: 115 Other: 90 (Source: Territory Families)

She said subcontractors must all have a minimum of Certificate 3 in child care.

"But that's not the end of the line, you are expected to attend workshops as well. All of our educators have got trauma training," Ms Havens said.

"And we don't sign up educators that don't have a good understanding of English in both oral and written. We offer pretty good care, and it's safe care."

Ms Havens said Territory Child Care Group regularly inspected the homes.

"Not only are we wanting to see what's in the fridge, but what clothing the children have got, what programs they're in, how many medical appointments and counselling they've had," she said.

'Loving, I can provide immediately'

Rachel said over time, she had gained the trust of parents. ( ABC News: Jane Bardon )

Rachel (not her real name) provides emergency placements for five Indigenous girls aged between six and 15, while also raising her own daughter.

The girls she cares for have stayed with her for between three and five years each.

One has a disability, the others have learning difficulties.

"It should not be the question that we are expensive, or the other one is so cheap. But you can see the quality that we provide," she said.

"All the children have a right to have the good things, because they don't have a choice [about being in care]."

Rachel cares for five Indigenous girls in her home. ( ABC News: Jane Bardon )

She's been providing placements since 2005, and said most children came to her traumatised and behind in school.

All around her home are shelves of books, educational toys and games, along with the children's sports trophies and school awards.

"All my children love to go to school, no-one wants to stay home. They do netball, basketball, swimming, and they have maths and English tutors," Rachel said.

"And my time for them is 24/7. Everything that a mother does for her own children. I cannot fix all of the children's problems, but loving is something that I can provide immediately."

Rachel said over time she had gained the trust of parents who take their children out for access visits once a week, fortnight or month.

NT Government trying to reduce emergency placement use

The Territory Government is trying to reduce its reliance on emergency placements.

"We're certainly looking at our placement system. We know that if we can get kids in permanent care, that is long term, earlier, rather than using the emergency placement system," the Territory's Families Minister Dale Wakefield said.

"We believe very strongly that kids do better in long term, stable, home-like environments. That includes kinship care."

The Territory Families Department said it was focussing on attracting, training and retaining more foster and kinship carers in every Territory community.

Longer term it plans to invest in more family support services to help prevent children going into care.

But Ms Havens from Territory Child Care Group expects the demand for her service will continue to grow in the short term, "and that's due to housing, domestic violence, alcohol, all of those social problems".