Thousands of young children are at risk of neglect or abuse because the system set up to protect them in the wake of the death of Victoria Climbié is failing.

Figures for this year show 1,330 children registered as living with distant relatives or friends in what are known as “private fostering” arrangements — a fraction of the estimated 10,000 to 20,000.

The notification scheme was set up to try to protect children who are often living thousands of miles away from their parents. Under the scheme anyone other than a close blood relative, such as a grandparent or aunt, who is caring for a child must inform their local authority.

However, the figures show that families are not coming forward, so privately fostered children remain invisible and outside the child protection system.

Private fostering was called “a honeypot for abusers” in the 1997 Utting report into child safety. The notification system was set up in the 2004 Children Act and has been in place since 2005. There were considerable doubts expressed at the time of its inception by children's charities, which wanted a more rigorous compulsory registration to cover private fostering arrangements.

To placate its critics, the Government inserted a clause in the Bill, saying that it would give the notification system three years to see if it worked and bring in compulsory registration if it did not.

Yet, despite the lack of success, ministers have decided to persevere and intend to extend the trial period until 2011, using the Children and Young Persons Bill which is currently going through Parliament.

The figures are also of concern because they are thought not to capture particularly vulnerable groups of privately fostered children. Thousands are believed to be very young and, like Victoria Climbié, of West African origin.

Of the 1,330 children known to local authorities, the majority are between 10 and 15 years old and only 6 per cent were born in Africa. The overwhelming majority are British-born.

Research conducted by the British Association of Adoption and Fostering found that only 18 per cent of people working directly with children understood private fostering. So concerned was the BAAF over its findings that it is planning a campaign aimed at those working in the childcare and adoption sectors.

“We really have to explain what we mean by private fostering. People are confusing it with fostering in the care system,” said David Holmes, chief executive of BAAF. He supports sticking with the notification system for the time being.

A spokesman for the Department for Children, Schools and Families also defended the Government's decision to stick with the current system.

“The latest figures show an almost threefold increase in notifications of private fostering arrangements since 2004. There are sound arguments for and against voluntary notification but the evidence base for a decision is still inadequate,” the spokesperson said.

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