The draft guidance, drawn up by Nice alongside the Social Care Institute for Excellence, aims to improve the quality of life for children in the care system.
It also calls for more training on looked-after children for professionals, primary carers and social workers as well as moves to ensure carers and their families receive high-quality ongoing support.
Other measures include continuing to support students throughout their time at university or higher education colleges, helping to promote a child's personal identity and providing a choice of culturally appropriate placements for children from minority backgrounds.
The draft guidance is open to public consultation until 14 April with the final guidance due to be published in September 2010.
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