A senior official at Haringey council has also resigned. David Derbyshire, assistant director of social services, had been at the council since 2001.
Last week, council chief executive David Warwick surprised councillors when he announced that the social services department would be restructured as a result of a changing focus in its workload.
"There was an overspend of 8m in the social services directorate overall in 2003/04," said Warwick. "This was, in part, the result of an increase in the number of looked-after children in 2003/04. This situation has now begun to stabilise.
"Child protection is our most important priority and difficult decisions have to be made. It can be difficult to predict, year-on-year, the number of children who will require our care."
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