MORE than £100m could be saved every year by helping young people in the care system more effectively, a North-East company has said.

Young Foundations, an independent children’s home provider based in Darlington, said targeting youngsters in care more efficiently could help them find jobs or education more easily when they leave care.

In the North-East and North Yorkshire, there were approximately 4,120 children in care last year. These included youngsters in foster placements, adoption, secure units and residential schools.

Young Foundations is part of the Children Service’s Services Development Group, which commissioned the report – In It Together II.

It found that if authorities concentrate on early intervention, appropriate provision, avoiding placement breakdowns and providing a transition from care to adulthood, they can make huge savings.

The report estimates that by diverting ten per cent of care leavers who end up in prison away from the justice system savings of £87,178,500 can be made every year.

Additionally, better care interventions to ensure that youngsters leaving care get a job or better education can save nearly £20m a year.

The report suggests that authorities could be paid by their results, so that if young people successfully make the transition to adulthood, children’s services departments would get more funding.

Young Foundations runs six children’s homes, including three in County Durham Managing director Brian Durham said: “Local authorities are facing 28 per cent budget cuts in real terms for social care, so money is getting tighter. They make a good job of placing most children in stable foster placements, but there is a smaller minority with deeply complex needs, and those children need decisive early intervention.”