Care budgets in the West Midlands have soared by millions of pounds in the aftermath of the Baby Peter tragedy, it was revealed today.

The recession has also been blamed for putting strain on relationships, causing family breakdowns.

In Walsall, the council’s children’s services department is expected to run £2.6 million over budget in 2009-10 after having to take in 25 children more than expected, while Dudley will overspend by £800,000. Wolverhampton is investing an extra £440,000 while Cannock has boosted the care budget by half a million pounds since Baby Peter died in Haringey, north London.

At the end of September, Walsall Council had 475 children in care – 25 more than expected.

Its children’s services department is predicted to run £2.6 million into the red by next April

The council’s chief finance officer James Walsh outlined the situation in a report.

He said: “As financial pressures impact on family relationships there are an increasing number of relationships breaking down leading to a rise in the number of children looked after.

“This position is further exacerbated by the effect of the Baby P case.”

In Dudley the council’s children’s services department is expected to run £800,000 over budget in 2009/10. Referrals have jumped by 95 per cent since 2007/08.

Cabinet member for children’s services Councillor Liz Walker said: “There is a national increase in referrals since the Baby Peter case and we are larger than some.

“You can’t ignore these problems – the consequences of people ignoring them were what happened to Baby Peter.”

An extra £440,000 is being poured into social care services in Wolverhampton. The department is to recruit an extra eight social workers by January in a move to beef up the service and manage the workload.

Around £87,000 of the extra cash will be allocated to the current financial year to allow the authority to recruit staff for January, while the rest of the money will be available to spend in 2010-11.

And town hall chiefs in Cannock have pumped an extra £500,000 into the care budget following a 30 per cent jump in referrals.