The Treatment Foster Care programme enlists professionals including psychologists and psychiatrists to help foster carers who are specially trained to deal with troubled young people.
Reading Borough Council, Reading Primary Care Trust, child and adolescent mental health services and the local youth offending team will run the scheme, which will also help children who have a history of criminal and anti-social behaviour.
Pete Ruhemann, Reading's lead councillor for children's services, said the project could "make all the difference for some really damaged young people".
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