Peterborough Council has agreed to transfer all its fostering and adoption services to a charitable organisation.
The council’s new Permanency service – thought to be the first of its kind in the country – will be run by the Adolescent and Children's Trust (TACT) from April 2017.
The council hopes the move will reduce reliance on higher cost independent fostering and residential placements, and improve outcomes for children in care.
Cllr Sam Smith, the council’s cabinet member for children’s services, said: ‘We believe that this new partnership will enable us to recruit and retain more local foster carers through an improved support network that TACT will deliver. This will lead to more local longer-term foster placements for Peterborough children and young people.
‘As we reduce our spend on placements for children in care we will be able to invest in additional services for our most vulnerable young people.’
The partnership with TACT is expected to deliver savings of £1m a year once it is fully established. Council staff working in fostering and adoption services will transfer to TACT.