Lewisham Council is set to open its own children's home in Sydenham, a move expected to save £700,000 annually and provide greater control over residential care for children in the borough.
The project will accommodate five children and has secured £800,000 in grant funding from the Department for Education, along with an additional £400,000 from the sale of an existing asset.
Leemya McHugh, Director for Family Health and Care, and Steven Chaplin, Head of Service Care Resources, presented the update, highlighting national challenges such as a dwindling number of foster carers and the increasing cost of external placements. They explained that the council's sufficiency strategy aims to ensure children in care receive the right support to meet their needs, enabling them to remain in Lewisham and maintain relationships with their families and communities.
Chaplin noted that currently, 54 children are living in residential children's home placements, with only 14 of those placed within Lewisham. He added that the council's spend on residential children's homes has risen by 69% over five years, reflecting national trends of rising costs and a market that is not working well.
The new children's home is projected to provide a cost avoidance of around £700,000 annually compared to current private market costs. The council will be supported by neighbouring boroughs and the London Councils Group in this initiative.
