The critical report states that "some parents and carers choose to electively home educate their children" with special educational needs and disabilities (SEND) "because they feel that schools cannot meet their needs".
The report also refers to a high proportion of children and young people known to the youth offending team, having unidentified needs relating to their speech, language and communication.
It also highlights "significant variation" in the ability of schools to identify need - resulting in many children arriving at pupil referral units with "unmet needs that have caused a deterioration in their behaviour".
The report - published last week following a joint inspection by Ofsted and the Care Quality Commission in March - also describes a "significant increase in the number of children and young people who are permanently excluded from school.
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