The Officer Key Decision meeting scheduled for Thursday 23 April 2026 was set to discuss the acceptance of a grant from the Department for Education (DfE) to support children with complex mental health needs. This grant is intended to fund capital investment for the development of children's homes.

Support for Children with Complex Mental Health Needs - Acceptance of Department for Education Grant

The meeting was scheduled to consider the acceptance of a £1.680m grant from the Department for Education (DfE) as 50/50 matching funding for capital investment. This funding is earmarked for the development of provision for children with complex mental health needs and challenging behaviour. The primary objective is to meet a mandatory signing deadline of 29th May 2026 to secure the grant.

The report pack indicated that the grant would contribute to the acquisition and refurbishment of properties to create children's homes. The Council would be responsible for the remaining costs, which would be funded from the existing capital allocation to Children's Services for capital projects for Children in Care and Care Leavers. A more detailed report outlining the specific properties, refurbishment costs, and the Council's financial contribution was scheduled to be presented to the Cabinet in June 2026.

The acceptance of this grant and its use to develop accommodation for children in care was noted as reflecting the Council's recognition of care experience as a protected characteristic under the Equality Act 2010¹.

The report pack recommended that the Corporate Director of Children and Young People's Services agree to accept the DfE grant of £1.680m and enter into all associated grant documentation. It was also noted that a subsequent detailed report would be submitted to the Cabinet for formal approval of the specific proposals for the grant's use.

The background information provided stated that Newham Council had applied to the DfE in February 2025 for capital funding to develop two children's homes, aiming to deliver a minimum of eight residential units for children with complex needs. The grant conditions require the homes to be council-owned and for the DFE grant to be match-funded, spent, and claimed on or before 31st March 2029.

The report pack outlined that formally accepting the grant offer would ring-fence the funding for the Council while detailed delivery and financial models were finalised. It was highlighted that the demand for residential provision for children with complex needs is likely to increase due to a growing number of children in the care system with complex needs and those subject to deprivation of liberty orders. The DfE grant is intended to create children's homes that provide support for children with the most complex needs, with the properties needing to be owned by the local authority. Developing two children's homes would enable the Council to meet local needs and benefit from DFE funding. The grant also requires the children's homes to operate for a minimum of five years from the first child's admission.

The report pack suggested that the alternative to accepting the grant would be for the Council to continue relying on expensive spot purchasing, which often places children far from Newham and their support networks.

The financial implications detailed in the report pack indicated that accepting the grant would secure the funding and would draw from an existing capital budget allocation of £4m for the development of children's homes. This project would not require a new financial commitment, and funding for the future operation of the homes would be provided from the revenue budget through a reduction in commissioned placements. The report also noted a financial risk that the grant might not be received if the deadline for signing the grant documentation was not met.

Legally, the report pack stated that the Council has the general power of competence under the Localism Act 2011² and the Local Government Act 1972³ to facilitate its functions. The recommendations were considered to be in accordance with these powers and duties.

The report pack also addressed the Public Sector Equality Duty (PSED) under section 149 of the Equality Act 2010⁴, requiring due regard to the need to eliminate discrimination, advance equality of opportunity, and foster good relations between those with and without protected characteristics. It noted that 'care experience' has been recognised as a protected characteristic by the Council since May 2024.