This award follows a competitive bidding process led by the Department for Education, inviting local authorities to submit plans for specialist children's homes.
Councillor Oscar Ford, cabinet member for children and young people, said: ‘Ensuring that our most vulnerable children have the care and support they need, close to home and within their own community, is absolutely vital.
‘This investment will allow us to provide up to six high-quality, specialist places in local homes within Havering, so children can remain near their families and support networks while receiving the help they need to thrive.
‘Havering Council is grateful for the opportunity to participate in this transformative initiative and looks forward to the successful delivery of this important project.'
The funding, secured jointly with NHS North East London ICB, is part of the national initiative to develop up to 200 additional children's home places across England.
The initiative is designed to address the critical national shortage of suitable provision, which has often resulted in children being placed at a distance from their local communities in costly accommodation.