One in ten children’s home and dozens of fostering agencies have been condemned as “inadequate” by inspectors who say they are failing to protect hundreds of young people in their care from harm or neglect.

Ofsted, which now inspects the care system as well as schools, said there were serious problems with the calibre of managers and staff at numerous homes, many of whom lacked relevant experience and basic competence.

Health and safety regulations were routinely flouted and not enough effort was made to make sure children attend school and do their homework.

The choice of homes and foster carers for children was very limited for most of the 24,000 children who come into the system each year.

Many children, especially those from ethnic minorities, with special needs or in sibling groups, ended up many miles away from home where they had no friends or extended family.

Children in “most areas” endured frequent changes of social worker due to high staff turnover. The lack of continuity seriously effected their care plan.

The report was also highly critical of the quality of accommodation local authorities make available for care leavers. It said the council flats offered were inadequate in most areas.

Campaigners say the transition from care into adult life is particularly difficult for young people, not least because they are forced out at the age of 17. Too many children end up on their own in dingy flats in the middle of vast housing estates and are unable to cope.

The Safeguarding Children report, produced by Ofsted and seven other inspectorates including the Prisons Inspectorate, said there had been no progress since the children’s care system was looked at three years ago by the previous regulator, the Commission for Social Care Inspection. Ofsted is considered a tougher inspector and took over responsibility for the 1,995 care homes and 425 fostering agencies in April 2007.

Its inspections judged 61 per cent of the homes to be good or better, 29 per cent as only considered adequate and 10 per cent inadequate. Unlike failing schools, the names of failing homes are kept secret.

In extreme circumstances, failing children’s homes can be deregistered by Ofsted, although most are first issued with an improvement plan and undergo spot inspections first.

Ofsted found seven per cent of independent and 10 per cent of local authority foster agencies were inadequate in terms of keeping children safe and well cared for.

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