ALMOST £2.4 million is set to be spent to deliver up to five additional children’s residential homes in the borough over the next 18 months.

A report on the issue will come before the council’s cabinet at its meeting on Wednesday.

It states that St Helens Council has a statutory duty under section 22 of The Children Act 1989 to ensure that, as far as reasonably practical, children are placed within the local authority’s area.

However, due to the levels of children in care in St Helens, around 473 children currently, the council has become "more reliant" on out-of-borough placements to meet demand.

According to the report, the council currently owns two children’s residential homes within the borough but has also been reliant on the external market to meet its needs through commissioning arrangements.

It adds: “The average cost of these external placements has increased by 28 per cent over the past three years, with no sign of this easing.

“Significant activity has been undertaken across the council to explore and consider the different options available in addressing these issues and to review best practice from across the country.

“The council proposes to identify, purchase and refurbish properties within the borough to create high quality placements, operated by the provider market.

“This will lead to improved quality of care and outcomes for children and young people as well as bringing about greater control, certainty and reduction of costs.

“Once the capital investment has been repaid by year five, the project is expected to achieve an annual revenue saving of £765k.”

The cabinet is recommended to approve the allocation of £2.379 million of capital investment to deliver up to five additional children’s residential homes in the borough over the next 18 months.

Members are also recommended to approve the proposal to procure and enter into contract with a children’s residential care provider, or providers, to manage the council-owned children’s homes, as well as to approve the establishment of a revenue budget to fund the operational costs associated with the management of additional children’s homes.