Recent developments, such as passage of the Children Act 2004, subsequent implementation of "Every Child Matters: Change for Children" and increase in funding to councils for Child and Adolescent Mental Health Services (CAMHS), the Local Government Association (LGA) asked the NFER to examine the funding mechanisms and priorities in CAMHS. An appendix includes Local Authority Sample Characteristics. This report discusses the research carried out by the NFER and looks at: (1) the local authority CAMHS grant, the Primary Care Trust (PCT) core CAMHS grant and other sources of CAMHS funding; (2) commissioning arrangements for the grants; and (3) the impact and effective use of current funding mechanisms. The report also identifies main CAMHS priorities and gaps in provision and makes recommendations for local authorities. This research is important reading for all local authority staff, schools, Primary Care Trusts and other organisations involved in social care or the equivalent children's services. (Contains 3 tables.)