Among a raft of concerns raised during the visit to the London Borough of Havering was the council's lack of progress to improve support for this vulnerable group of young people.
The council's children's services received an overall "requires improvement" rating, but was given the lowest grade of "inadequate" for the individual judgment area for its work with care leavers.
The inspection team said the council had still not made improvements on recommendations made five years ago by the watchdog.
Pathway planning, which was flagged as an area of concern in 2011, continues to be of "poor quality", Ofsted found.
"It is not compliant with statutory guidance or effective. Plans lack detail, many sections are not completed or reviewed regularly, and young people spoken to by inspectors were not aware of plans to meet their needs or were sufficiently involved in developing them," the inspection report states.
The report adds that "targets and actions, when they do exist, lack clarity and urgency".
Further concerns include poor record-keeping and support relating to care leavers' healthcare needs.
In too many cases, care leavers are simply advised to "make sure they are registered with a GP and a dentist", the report states.
A lack of a structured programme for developing care leavers' independent living skills and confidence also makes the inspectors' list of problems at the council.
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