The east London council has projected an overspend of 5.2m in the department.
Many of the savings will come through the more efficient placement of looked-after children and some reductions in services the authority is not statutorily obliged to provide.
Cutting excess financial help to young people leaving care is expected to save 150,000. A spokeswoman said this meant the cancellation of services that a young person not in care would not expect to receive - such as paying the rent on two flats at once, which has happened in Newham in cases where a young person is sent to a school far away.
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