Redundancies hit 520 workers at Sandwell Council costing £11.8million last year, it has emerged.

The under-fire children and families department, which received damning reports from Ofsted two years running, was worst hit with 126 losses, costing £2.006m.

A report adds there are a further 110 losses planned for the department in 2011/12, due to cost £2.254m in redundancy.

The second hardest hit department was Adult Services and Health, where 95 staff had contracts terminated, costing the council £1.775m.

The authority used money from last year’s funds to pay redundancies and lose staff to balance the books for this year. The bill covers all staff who left the council, or are known to be leaving the council, at March 31.

The job losses will remove the burden of wages the council cannot afford this year. It faces spending around £30 million less this year than £322 million in the last, saving £75m by 2015.

Councillor Steve Eling, the borough’s finance boss, said: “The Government cut its support to Sandwell by over £30 million. This led to over 500 job losses and redundancy pay outs of £11.8 million.”