Torbay Council is facing higher than anticipated costs in providing homes for children who can no longer stay in their own homes.
The escalating cost of children's 'social care placements' is a key factor contributing to a significant overspend in the council's budget.
Cabinet members will be informed that the council is projected to exceed its budget by £785,000, set earlier this year.
Although the council will save half a million pounds through underspending on its financial services budget, this will be more than offset by overspends in areas such as social care placements and legal services, totalling nearly £1m.
A lack of suitable placements for children is pushing up costs, with the council recently having to arrange costly residential provisions.
Increased demand for day services and placements is also expected to result in an overspend of £99,000 in the budget for disabilities.
Challenges in matching salaries offered by the private sector are exacerbating issues for the council's legal services budget, which is on track for an overspend of £543,000.
Vacancies and absences have necessitated the use of expensive agency staff.
In other areas of the budget report to the cabinet, Torre Abbey is also likely to cost around £100,000 more than expected due to declining income from weddings and the abbey's cafe.
A report presented to the council's cabinet said: "Robust financial management and control continues to be required from all services across the council in order to mitigate current and emerging spending pressures to ultimately achieve a break-even position by the year end."
