Care costs for disabled children have been been cut by £262,000 – thanks to re-structuring and investing in residential services within Bradford’s boundaries, says a new report.

The Council’s aim of saving £200,000 from its respite care bill has been topped by transforming a centre on Brunswick Road into residential care and by returning children from expensive placements outside the district.

In January such external placements were costing Children’s Specialist Services £602,000 a year – whereas the new measures have brought the bill down to £340,000 for 2012.

Councillor Ralph Berry , the executive member for children and young people, said it was a tremendous result for a policy of investing in order to save money.

He said: “Sometimes I think the Council doesn’t get enough credit for financial efficiency, but this is a good example of that and a good story.

“There has been some very creative work involving parents and carers and we have developed these better facilities so that things are closer to home.

“And that means there will be less disturbance for those who really matter – the children.”

And the price of care could fall by another £113,000 if expected savings take place as more disabled children return to the district or move into adult care.

Meanwhile, the building of the new Lister Lane Children’s Home is on schedule for completion in the spring and improvements to the Clockhouse Respite Unit have been finished on time.

The new Wedgewood Respite Unit is serving the needs of 30 children with significant needs and the decision to convert a unit at Brunswick Road rather than close it completely has also helped prevent children being sent to costly sites outside the district.

The Council’s Children’s Services Overview and Scrutiny Committee will discuss the report when it meets on Tuesday.