Havering Council has announced plans to convert two residential properties in the borough into two new children’s homes.
The new homes will provide specialist accommodation and care for some of the borough’s most vulnerable young people while delivering significant long-term savings for local taxpayers.
The proposals will see one family home converted into a four-bed children’s home and a second into a two-bed home, creating six high-quality placements for children with complex social, emotional and mental health needs.
Cabinet approved the plans as part of an invest-to-save approach that will reduce reliance on expensive out-of-borough and private sector services.
Currently, many Havering children who require specialist residential care have to be placed outside the borough, often far away from their families, friends and schools.
These placements can cost the Council many thousands of pounds per week per child, placing significant pressure on Children’s Services budgets.
By investing in its own homes, the Council expects to make substantial savings.
For example, caring for four children in external placements can cost more than £3 million per year.
The new council-owned homes are expected to reduce these costs significantly, with estimated savings of around £1 million per year once the homes are fully operational.
Over time, this will help the Council manage rising demand for children’s residential care while protecting frontline services.
This will be the first time Havering has directly invested in council-owned children’s homes.
If successful, the approach could form the basis of a new model for the borough, enabling more children to be cared for locally, improving outcomes for young people and delivering further financial savings in the future.
As well as the financial benefits, keeping children closer to home has clear advantages for their wellbeing.
Local placements mean young people can remain nearer to family and friends, continue at their existing schools where appropriate, and maintain access to local health and mental health services.
This stability is particularly important for children recovering from periods of crisis or hospital care.
The project will cost a total of £2.1m, with half of the funding coming from a Department for Education grant with the remainder coming from the Council (£515,00) and North East London Integrated Care Board.
Councillor Oscar Ford, Cabinet Member for Children and Young People, said:
“These proposals are about doing the right thing for our children while also being responsible with public money.
"Too often, children with complex needs can only be placed outside of Havering, a long way from their family, and the scarcity of provision means that the cost to the Council budget is both very high and somewhat unpredictable.
“By investing in our own homes here in Havering, we can provide high-quality, specialist care closer to family, friends and schools, while making significant savings.
“If successful it could change how we deliver children’s residential care in the borough for years to come.”
The Council will continue to engage with local Councillors and communities as the project progresses to ensure the new homes are well integrated into their neighbourhoods.