Haringey Council is set to pay a consultancy firm £2 million for the “transformation" of a department that is overspending by the same amount.

The council's children's services department is currently projected to overspend by £2 million this year.

But by working with consulting firm iMPOWER the council estimates it will save more than £5 million on Children’s Services between January 2014 and March 2015.

A council spokesman said the £2 million projected overspend in children’s services does not result from the “investment” in iMPOWER Consulting.

In the tender document for the deal with iMPOWER, the council makes clear its plans to increase focus on “effective early help” over the course of the year.

Liberal Democrat opposition group leader Cllr Sarah Elliott expressed concern that the transformation was not going as planned, and questioned the amount spent on consultants.

She said: “The Labour-run council has spent a lot of money on the plans and on consultants to find ways of saving money while protecting children. But it seems that those plans are not being delivered.

"It is questionable whether the savings to children's services can be made in the way that has been suggested.”

A council spokesman said: “Haringey Council’s strategic partnership with iMPOWER forms part of a three-year programme designed to improve life chances and outcomes for Haringey children, whilst also making the efficiency savings required of local government in the current climate.”

He added: “The council is committed to working with experts who enable us to deliver the best possible services to Haringey’s residents at a cost which is both financially sustainable and offers good value for money.”