With support from the University and College Union the inquiry will examine how the system can be changed to improve their educational outcomes for looked-after children.
Nandy, MP for Wigan and education select committee member, and Timpson, MP for Crewe and Nantwich and a former family lawyer, are leading the inquiry.
The inquiry has already issued a call for written evidence and the first oral evidence session is set to take place today (2 November).
Nandy said: "Figures released this year show that 28 per cent of 19-year-olds leaving care are not in employment, education or training, while only seven per cent go on to higher education.
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