Using outside fostering agencies can cost up to five times as much as carers on Dundee City Council’s own list, it has emerged.
Social work director Jennifer Tocher has told councillors that the average cost of an in-house foster carer is around £300 per week, while external placements can cost between £660 and £1,500.
There are 80 children relying on agencies for a home, resulting in “significant pressures” on the social work budget. Ms Tocher said this situation is not sustainable given the current financial climate.
She is hoping a new action plan will help to reduce the “mismatch” between the number of children needing to be looked after and the number of people willing to be foster parents.
“This gap has been filled, to some extent, by independent fostering providers.
“Not only are there significant financial implications, but there are also hidden costs when children are moved away from their local communities, schools and friends to access care placements,” she said.
The social work department wants to take on at least five new carers every year for the next decade.
It may advertise on television, if it can find other councils willing to help pay for it.