The north-east London council has increased the forecast overspend for 2003/04 by 150,000 to 637,000.
Chief officer Mimi Konigsberg told the council's cabinet that the situation was under control and that staff aimed to reorganise the budget as part of their medium-term strategy.
Her report said: "While there has been some improvement in the position regarding child placement costs, care package commitments and staffing costs in assessment services, this has been offset by higher projections of staffing costs in family support teams and expenditure on voluntary organisations in providing more preventative services."
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