A proposal to create more residential and supported accommodation for children in care in Middlesbrough could save more than £1.9m over the next four years, the council says.

Middlesbrough Council signalled in February last year it wanted to increase the in-house estate for children’s care.

However, efforts to secure suitable properties have not been straightforward with one planned refurbishment of a property belonging to the council into a residential home described as “prohibitive” and not value for money.

Local authorities on Teesside have repeatedly highlighted the expensive and rising cost of caring for children with complex needs, with limited provision sometimes requiring placements to be sought outside of the area.

A revised plan, expected to be approved by Middlesbrough Council’s decision-making executive, aims to identify suitable properties with “minimal renovation required” and describes building partnerships with commissioned providers.

The council currently has four children’s homes, a four-bed facility offering “edge of care” services and supported accommodation consisting of ten flats and nine supported lodgings for those with higher needs.

A report described how their current occupancy was high – 90% in residential homes and 100% in supported accommodation – and as a result external organisations were being used to provide homes with such external residential placements costing an extra £2,300 a week.

The report said it was forecast that the current active 76 external residential placements for children from the town would cost £14.4m this financial year.

The council’s revised approach involves buying new build properties from home builders, or from the private market, to transform into children’s homes and also partnering up with commissioned providers to provide better value residential and supported accommodation placements, as opposed to the current “spot contracting” position.

Two six-bed children’s homes could be bought in 2024/25, one three-bed in 2025/26 and a further two six-bed homes in 2026/27 under the plans.

Capital investment signed off last year set aside £4.5m to develop internal residential provision.

All relevant planning considerations would be taken into account and the implications of potential formal objections, with change of use permission potentially required.

The report, meanwhile, acknowledged that recruitment of staff to manage and work in the residential homes and supported accommodation properties “may be challenging”.

Figures show the council had 528 children and young people in its care last month, of which 97 were in residential care.

The council said the benefits of its approach would include supervised family time being easier to manage and an increased potential for children to return home, while social workers could also have greater oversight on care and education plans for young people who were living in the Middlesbrough area.

Where there are safeguarding concerns meaning some children and young people have reasons for living outside of the area, these arrangements wouldn’t change.

The report said: “Middlesbrough Council’s ambition is to increase in-house placements homes for children and young people which is a more cost-effective solution and brings better outcomes for children at lower cost. 

“These placements would provide medium term placements for children and young people with emotional and behavioural needs, with a particular focus on those who would otherwise be placed in more costly external settings.”

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Cllr Zafar Uddin, executive member for children’s services, added: “Having Middlesbrough children looked after closer to home is extremely beneficial to their upbringing. 

“They’re likely to feel less isolated and are more part of our community.

“At the same time, it puts us in a position where our arrangements are more cost-effective which is vitally important as we look to make the council’s financial position more sustainable.”