A report based on "deep dive" assessments of the quality of multi-agency work into tackling CSE in six local authorities found evidence of improvement in the way services are operating.
Inspectors found that vulnerable children benefit from building a relationship with one trusted individual, such as a social worker, and being actively involved in decisions about their lives.
However, Ofsted said police services in particular need to improve their response by making sure children talk to one person of sufficient skill and experience to know how to help.
Meanwhile, current risk assessments by the police were deemed to be "inconsistent", with their effectiveness for some children being "limited".
There was also found to be a variation in police practice between and within areas, with some children having to wait too long to get the help and support they need.
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