Rotherham Council has set aside £1.65 million to adapt the homes of foster carers and adopters in the town.
The funding is aimed at allowing children to stay with families whose homes may not be suitable.
A similar scheme has seen £1.12 million spent on 19 house extensions.
The investment in carers’ homes means the high cost of independent fostering agency placements is avoided.
It is estimated that the £1.65 million investment will avoid over £2.3 million being spent on independent fostering placements.
Priority will be given to homes where siblings wishing to stay together rather than being placed in separate homes could be placed.
Councillor Gordon Watson, Lead Member for Children’s and Young People’s Services at Rotherham Council said: “Carers who are able and willing to give a loving and stable home should be given as much support as possible to make this happen.
“This money will not only keep existing fostered and adopted siblings together but will see more places being offered for some of our most vulnerable children and young people.”