A joint inspection by Ofsted and health watchdog the Care Quality Commission described the quality of education, health and care (EHC) plans as "unacceptable" and the standard of input by professionals to them as "shoddy".
A letter outlining the findings of the inspection said that the EHC process in Oldham is "fundamentally flawed", and "does not comply with the code of practice", adding that "there is possible illegal practice".
Inspectors found that the local area is "too quick to refuse to undertake assessments", with officers making decisions about whether an EHC needs assessment should be undertaken before they have gathered evidence required under the code of practice.
The quality of EHC plans that were produced was found to be "unacceptable".
"Outcomes for pupils are often meaningless and the level of input made by professionals can be shoddy and inaccurate," the letter states.
"Not all professionals routinely contribute to the plans."
During their visit in October, the joint inspection team also found a lack of accountability across all support services and poor-quality partnerships between education, health and social work.
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