FGCs involve family and friends in the planning of support for children at risk of being taken into care and can involve extra help being provided or identifying kinship carers who can step in.
A randomised control trial involving 2,500 children carried out across 21 council areas found that children referred for an FGC before care proceedings were 8.6 per cent less likely to go into care compared to those who were not.
This could mean more than 2,000 children a year could avoid going into care, according to the study, saving an estimated £150m within two years.
The trial was carried out by the charity Coram and has been published by what works centre Foundations.
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