Four local authorities have joined forces to launch a judicial review against the government, claiming that new powers forcing councils to bear the full cost of child-care cases are unlawful, the Gazette can reveal.

Hillingdon Borough Council in London, Leeds City Council, Liverpool City Council and Norfolk County Council jointly lodged proceedings against the Lord Chancellor, Jack Straw, and the Secretary of State for Communities and Local Government, Hazel Blears, last Friday.

Since May, local authorities have been obliged to foot the bill for child-care proceedings as part of a government drive to make the courts entirely self-funding through court fees. Ministers also said the change would deter councils from launching care proceedings unnecessarily or prematurely.

The controversial move has resulted in increases of up 2,500% in court fees, with child-care proceedings rising from £150 to £4,825, in some cases retrospectively. Previously, the Courts Service had received around £40m annually to subsidise such cases.

However, while the government has reallocated the money to authorities directly, some ­officials claim it is not enough and the formula does not take into account individual councils’ caseloads.

The judicial review application argues that the government failed to consult on the fee changes properly, that the ‘full cost recovery’ principle should not be extended to child-care cases, and that the reallocated cash is insufficient.

Suzanne Bond, chairwoman of Solicitors in Local Government, said: ‘The rise in costs will have a major effect on local authorities’ ability to fulfil their statutory obligations from ever-decreasing budgets without other services suffering.’

Stephen Boorman, head of social care legal at Leeds City Council, said: ‘The retrospective part of the new fees will cost Leeds an estimated £206,000 alone. It means there is less money available to undertake family support work to keep cases out of court, and undermines the government’s own Every Child Matters agenda.’

A Ministry of Justice spokesman said children would not be put at risk by the new fees structure. ‘This is not just our view but the view of a wide range of experts in the field of child care, including the Local Government Association, [and] the Association of Directors of Children’s Services,’ he said.