Alerts over vulnerable children in Merton have more than doubled in the aftermath of the Baby P scandal.
On Monday Merton Council said public concern meant referrals linked to vulnerable youngsters had risen from about 200 to 500 a month in the wake of the scandal.
Councillor Debbie Shears said although the authority was coping with the rise, tackling it would contribute to a budget overspend of at least £2.5m by her department.
Coun Shears said experts had predicted the figure would rise sharply when Baby P dominated the news, and then fall.
But instead the number has stayed relatively constant since the story made headlines last year, although it is now dropping slightly.
The cabinet member for children, schools and families, said: “We have got extra staff in and we are confident the service is sound.
"I think protecting the vulnerable is probably the single most important function of this council.”
This week a council cabinet report said children’s social care staffing and placement costs had risen “significantly” in the wake of the scandal.
The report reveals more work is being done to help children in care and those with a child protection plan, and extra social workers have been drafted in to cope with the demand.
It adds: “Court proceedings are taking longer and there are increased expectations regarding packages of care. For example, courts are insisting on the prolonged care of mother and baby residential accommodation.”
A year’s care for one child taken into secure accommodation two months ago is expected to cost the council £138,000.
Coun Shears said rising unemployment and poverty among Merton families, caused by the recession, has led to increasing drug and alcohol abuse and mental health problems - which has “implications” for child protection.
High child protection costs, as well as more spending on transport for pupils with special educational needs and the boroughwide sixth form building programme, have sparked the department’s predicted overspend of £2.5m to £3.5m this year - although Coun Shears said this figure was falling every month.
The report was released as part of a cabinet investigation into the impact of the recession on Merton, presented at a cabinet meeting on Monday evening.
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