During a parliamentary debate Labour MP Ann Coffey said there has been an increase of more than 60 per cent in children being "farmed out" to children's homes outside of their local authority area compared with five years ago - from 2,250 in 2012 to 3,680 in March 2017.
The Stockport MP also accused private children's home providers of "catastrophically failing children" by pushing up the price they charge to local authorities to as much as £5,000 per week per child.
Coffey, who chairs the All-Party Parliamentary Group on Runaway and Missing Children and Adults, added that the number of children in out-of-area placements who go missing has doubled, putting more children at risk of exploitation by gangs and paedophiles.
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