An increase in children being taken into care has led to a predicted £9 million overspend in the county council department which is responsible.
The Government has changed the criteria for putting young people into council care and each child costs Devon £50,000.
Now the council has set up a working group of senior councillors to rein in spending by the department in charge of child protection and vulnerable adults.
The leader of the council John Hart is confident that they'll get it under control.