Birmingham Council launched a children's trust in April in a bid to improve standards within children's services, which have been rated "inadequate" since 2009.
In its first monitoring visit since it was launched, the inspectorate focused on assessing support for care leavers, finding that they are all allocated a personal adviser.
Inspectors also welcomed the Birmingham Children's Trust setting up of a specialist leaving care team to support unaccompanied asylum-seeking young people.
Staying Put arrangements, whereby looked-after children can stay with their foster carer until they are 21, were also found to be well used.
In addition, care leavers in need of mental health support benefit from a newly created therapeutic support service.
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