The watchdog has also judged safeguarding in eight councils to be inadequate, double the number from last year, in its 2008 Annual Performance Assessments (APAs) for local authorities.
Last year no councils were rated as inadequate for children's services, while four were graded as inadequate for the ‘staying safe' Every Child Matters outcome last year.
Despite this, 99 councils were judged to deliver good children's services and nine were rated as outstanding.
Ofsted chief inspector, Christine Gilbert urged local authorities to use their APA reports to drive good frontline practice.
She said: "For those judged to be good or even outstanding, whilst this reflects that overall services are working well, it does not mean that things are perfect. One of the features of outstanding provision is the drive for greater improvement. I would call on all local authorities, whatever their grade, to use their APA reports to drive up standards."
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