Newham Council has approved a £3.7 million plan to develop two new children's homes locally, aiming to provide crucial support for vulnerable young people with complex mental health needs.
The decision, made by Laura Eden, Corporate Director of Children and Young People's Services, on Tuesday, September 22, 2026, will see two council-owned properties refurbished to create residential spaces. This initiative is designed to address a critical shortage of local provision for children at risk of deprivation of liberty orders and those with complex mental health challenges.
The homes will be equipped to support children with a range of complex mental health needs, including those at risk of self-harm, mental health difficulties, and those at risk of deprivation of liberty orders. They will also cater to children who present with behaviours that challenge, ranging from physical aggression towards peers and care givers to damage to property.
Each of the two new children's homes will provide four bedrooms, accommodating a total of eight young people across both facilities. The grant funding is specifically allocated to deliver a minimum of eight residential units within two registered children's homes.
The refurbishment of Property 1
and Property 2
is estimated to cost £3.712 million. The project will be part-funded by a £1.680 million grant from the Department for Education, with the council contributing the remaining £2.032 million from its existing capital allocation for children's services.
Property 1
, a single-storey building with five bedrooms, was previously used as supported accommodation. Property 2
, a two-storey building, was formerly a day centre for older people.
The new homes are intended to offer therapeutic care, with joint health and social care support. The service will be designed to deliver a strength-based model through the operation of Newham Council's systemic practice and positive behaviour approaches for children with complex needs, thereby making it easier to match children with more complex needs with other children. This in-house provision aims to give the council greater control over children's care journeys, ensuring smoother transitions and improved stability.
Measures to ensure the safety and well-being of young people and staff will include registration with Ofsted in accordance with the Care Standards Act 2000 and the Children's Homes (England) Regulation 2015. The service will offer innovative practice underpinned by the Newham Circles of Support Practice Model Framework, providing bespoke high-quality residential care with local wrap-around support. The Council will collaborate with child mental health services to support children through the development of the Intensive Community Support Service (ICSS), which will offer specific mental health support and treatment.
Works for Property 1
are anticipated to commence in January 2027, with completion expected by June 2027 and an operational date by June 2028. For Property 2
, works are slated to begin in February 2027, with completion by October 2027 and an operational date by October 2028. The homes will be registered with Ofsted.
Recruitment of registered managers for the children's homes will begin 12 months before the homes are due to open, as they are required to be in post for the Ofsted registration process. The cost of these posts has been factored into the financial modelling.
The project aligns with the Newham Living strategy and the Newham Children in Care Sufficiency Strategy, aiming to increase the number of residential children's homes within the borough and reduce the need for young people to be placed outside their local area. This move is expected to reduce costs associated with expensive spot purchasing of external placements and provide more tailored care for children with complex needs. Financial modelling indicates a positive net present value, with a breakeven position projected for 2029/30. The revenue budget for operating the children's homes will be funded by a reduction in commissioned placements, allowing the Council to decrease the significant costs currently incurred through spot purchasing, particularly for placements requiring intensive staffing ratios.
For more details on the decision, see the Agenda frontsheet and the Public reports pack.