At a cabinet meeting councillors decided to explore creating one or more, three- to four-bedroom children’s homes in the town.
Two business cases are to be investigated; one for Hartlepool Borough Council to develop and manage one or two homes itself, and the other for another council to be commissioned to run homes in Hartlepool.
The council will also consider selling one of the beds in any new home to another council to subsidise its running costs.
Sally Robinson, the council’s assistant director of prevention, safeguarding and specialist services, said: "This is not about reducing the proportion of children that go into fostering it is about giving the service greater flexibility. For some children they find it difficult to adjust to family life and residential care is appropriate.
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