A report from the Local Government and Social Care Ombudsman details how council officers told the children the reason that their foster carers had not collected them from school as normal was that they had gone on holiday.
The way in which East Riding of Yorkshire Council had acted to remove the children had caused a "significant loss" to the couple who had been their foster carers for two years, the report states.
The couple brought a complaint against the council on the grounds that had they known the council were going to take the children away, they would have launched a legal challenge against their removal.
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