The report, Counting Lives: Responding to Children that are Criminally Exploited, finds that while teenagers are most at risk of exploitation, targeting of children of primary school age is increasing.
Examples include a youth worker reporting that an eight-year-old was earning money from drugs for his mother, and in another case a seven-year-old was receiving support from local services.
Many police forces and councils are not recording data about children who are exploited and nearly two-thirds of councils do not have a strategy in place for tackling child criminal exploitation, according to the research.
Some professionals cited a lack of understanding of the National Referral Mechanism, describing it as a "form-filling exercise" rather than a gateway to support, the report finds.
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