Following a focused visit last month to check on the London Borough of Newham's child in need and child protection services, Ofsted found that the move to small teams had resulted in significant improvements.
Managers have more time to effectively support frontline social workers and oversee casework, inspectors found.
In addition, the inspection team found that the move is helping social workers work more closely with other agencies in supporting vulnerable children.
"The recent restructure to smaller teams with increased managerial capacity is facilitating the implementation of the local authority's chosen social work model," a letter to Newham Council's director of children's services, Grainne Siggins, outlining the findings of the visit states.
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