A 16-year-old boy, who has been looked after by Essex County Council since he was 11, complained after he was moved from his accommodation and school to Kent.
The ombudsman decided Essex was at fault for moving the teenager when there was no suitable education available. Kent County Council was criticised for failing to provide appropriate education while he was living there.
In a statement, Essex County Council said it regretted its failure to provide suitable education and had made changes to procedures as a result of the case.
Conservative councillor Paul Carter, the leader of Kent County Council, said: "We accept that we were slow to provide home tuition in this particular case but the underlying problem of children being placed in Kent is not of our making and puts an unfair burden on this county."
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