Councils will be able to bid for a portion of the money, which is the third tranche of a fund to support treatment foster care programmes.
The grant gives councils the chance to develop a valuable local programme that will increase the options available for placing children appropriately rather than relying on expensive out-of-area placements.
Only bids that demonstrate that local health commissioners, education departments, youth offending teams and carers have been consulted on the scope for developing and sustaining the programmes will be considered.
And there must also be the capacity to continue the programme beyond the pump-priming stage. The programme will support 10 placements.
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