Nandy told CYP Now that an investigation was needed because increasing numbers of councils were coming forward to confirm plans to introduce charges.
“We need to understand the scale of the problem and how many councils are looking at doing this and why,” she said.
“It is impossible to ignore the huge cuts to council budgets but, having said that, any good council would recognise they have a unique responsibility to children who are in care and in trouble.
“That goes beyond being a legal responsibility - it is a moral responsibility as well.”
Nandy also called for Prime Minister David Cameron and Education Secretary Michael Gove to explain how Conservative-controlled Worcestershire County Council would charge children from the age of 16, and potentially pursue them through the courts if they do not pay.
Under the Worcestershire proposals, parents could be forced to pay hundreds of pounds a month if their children are taken into care in “non-crisis” situations.
A child may also be asked to contribute to the cost of their own care if they are over 16 and are deemed to have enough money.
Nandy's comments came as Wakefield Council today confirmed that it intends to charge families £72.90 a week – the equivalent of £3,800-a-year – if they ask for their children to be taken into care, as part of wider changes to the way it charges for services.
However, the Labour-controlled Yorkshire council declined to say whether the proposals would include charging children once they reach 16.
Jackie Wilson, Wakefield’s service director for safeguarding and family support, said: “In the context of a council-wide fees and charges consultation, consideration is being given to some very limited means-tested charging for some children’s care admissions.
“The consultation has now closed and the responses are being analysed. A report will be presented to elected members in the autumn.”
The Association of Directors of Children’s Services (ADCS) tried to play down the significance of councils trying to charge parents for care costs by saying such policies are nothing new.
ADCS president Andrew Webb said: “For several decades, it has been legally permissible for local authorities to recover contributions from parents who request that the local authority looks after their child (i.e. the child is accommodated by voluntary agreement).
“Current regulations include a raft of exemptions to prevent charging families in receipt of state benefits.
“Few local authorities have active policies to charge in this way, and those that do have additional, locally agreed exemptions and discretions, and a scheme of means testing, which means that in practice it is rare for a local authority to make the charge.”
