In 1930, the Boards of Guardians, who had administered the poor relief system in England and Wales since 1834, were abolished and their responsibilities were taken over by county and county borough councils. Each council set up a Public Assistance Committee to oversee its new duties, which included the operation of the various children's establishments previously run by the poor law unions in each area. The cottage homes at Shotley Bridge, formerly run by the Gateshead Union, were taken over by Durham County Council.

In around 1943, the Gateshead council established a residential nursery at Briermede, Earls Drive, Low Fell, Gateshead. By 1947, the Oakfield receiving home had been opened at Oakfield, Chowdene Bank, Low Fell.

Following the passing of the 1948 Children Act, councils were required to provide care services for all needy children in their area, especially those who lacked a normal family home. In common with other local authorities, the council established a new Children's Committee, whose responsibilities had previously been spread across separate Health, Education and Public Assistance Committees. The Committee took over responsibility for the Briermede and Oakfield homes.

By 1950, a new home had been opened 17 Saltwell View. In 1951, a twelve=bed hostel for working girls, aged 15 to 18 years, was established at 4 Cambridge Terrace. At around the same time, a second residential nursery known as Earlswood, was opened at Earls Drive, Low Fell.

The 1948 Act had recommended that where children needed to be in residential care, they should be in 'family group' homes, which ideally accommodated no more than eight children, or twelve at most. By 1954, the council made its first step in this direction with a mixed 'family group' home on a new housing estate at 11 Marsden Grove, Wrekenton.

By 1959, the Saltwell View home had become a hostel for working boys and the Oakfield nursery was closing.

By 1967, the Lyndhurst family group home had been opened at 42 Eskdale Gardens, Gateshead. The following year it was joined by a home at 1A Fennel, Harebell Road, on Gateshead's on the Beacon Lough estate. By 1972, there was a reception and assessment centre at 50 Malton Green, Gateshead. Chowdene was now a day nursery.

As part of the local government reorganisation that took place in 1974, Gateshead absorbed the neighbouring districts of Felling, Blaydon, Ryton and part of Chester-le-Street Rural District. As a result, Gateshead took over a number of homes previously run by Durham County Council. These comprised the family group homes at 6 Blake Avenue, Whickham; 53A Edendale Estate, Crawcrook, Ryton; 37 Hallgarth, Felling; and 30 Linden Road, Blaydon.

In the late 1970s, a large community home was established on Mount Road, Birtley.