The move follows Ofsted inspectors reporting that while there are signs of improvement at Worcestershire County Council, lingering problems remain within the "inadequate"-rated service.
In light of the findings the DfE has ordered the county to push ahead with plans to create a council-owned company to take over the operation of its children's social care service.
Under the DfE's latest directions, the council must establish the company by April 2019. The company, which will be called Worcestershire Children First, will then shadow the council's service before taking over the service in October 2019.
Ofsted's latest monitoring visit to Worcestershire found the council had "realistic understanding" of the improvements needed.
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