A snapshot survey of 20 directors of children's services found the "Southwark judgment" is stretching council resources and reducing wider provision for care leavers in some areas.
Since the landmark House of Lords ruling against Southwark Council in May 2009, local authorities have been required to offer all homeless 16- and 17-year-olds care services under Section 20 of the Children Act 1989.
The previous government maintained that the ruling did not represent a "new burden" on local authorities, but merely clarified existing law, so councils were never given extra cash to respond to the judgment.
But according to 14 out of 20 directors questioned, the judgment has led to a rise in the care population and young people receiving housing support in their area. The estimated annual cost attached to this ranged from an additional £100,000 in the least affected authorities to £500,000 in the hardest hit.
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