The council has unveiled a £1.5m plan to buy and refurbish two properties to be used as children's homes.
The proposals, set out in a cabinet report, aims to reduce the local authority's reliance on "costly" private providers and meet demand due to challenges in recruiting foster carers.
The average cost of a privately run children’s residential placement in the north west has increased by 40 per cent in the last four years, up to £5,832 per week.
Bury withdrew from providing residential homes for children more than a decade ago and all children are placed in privately-run residential homes, some more than 20 miles from the borough.
The number of children entering into care has increased by 22 per cent in Bury since 2009, but this is still significantly less than the national average of 41 per cent in the same period.
The council says it has been a challenging time to recruit foster carers due to cost of living struggles and a decline in the availability of spare bedrooms with 14 newly recruited in 2023/24.
A report from deputy council leader and cabinet member for children and young people, Cllr Lucy Smith, said it is hoped the scheme could generate a saving of £400,000 a year and influence private providers to adjust their costs to “more realistic levels”.
Six places for children in a home-style environment would be created in the borough with additional live-in staff and on-site managerial support.
The location of the properties is yet to be decided but the council say that they will make a decision with "consideration of existing communities".
The council has also already identified a borough property to be used as one of 10 children's homes for the Greater Manchester shared children’s residential care service, but the further two properties under these plans would be exclusively for Bury children.
The local authority works with 23 private providers of children's residential care within Bury and across the north west.
The report recommends the cabinet to approve the plans at the meeting on Wednesday, November 6.
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