West Berkshire Council was given the lowest rating in May 2015 due to a range of problems that inspectors said left children at risk of harm.
But a recent monitoring visit found that efforts to address issues are having an impact.
"Based on the evidence and cases seen by inspectors during this monitoring visit, the local authority has made positive improvements to services for children," a letter outlining the findings of the visit, which took place on 5 and 6 December last year, states.
"Further work is needed to ensure these improvements result in consistent practice across the service."
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