An Ofsted inspection into the Children and Family Court Advisory Support Service area that covers Herefordshire, Shropshire, Staffordshire, Stoke-on-Trent, Telford and Wrekin and Worcestershire, revealed that the overall effectiveness of service was hampered by inadequacies in safeguarding.
But the report also praised the leadership and direct work undertaken with children and young people.
Out of 15 categories, nine were rated satisfactory and six inadequate.
The report said: "Despite some clear strengths, the service area is inadequate in several important aspects and there are significant concerns about safeguarding practice in some cases."
Other concerns were raised about how assessments are not shared consistently with children and families, how complaints are handled and how Cafcass contributes to the promotion of improved outcomes for children and young people.
But inspectors praised the leadership, saying it was "clear and purposeful" and said the majority of reports to courts are "satisfactory or better".
The report said: "Direct work with children and young people is strong and in most cases there is evidence of effective advocacy for them in both public and private law cases."
Inspectors said services must immediately improve to ensure safeguarding practices fully comply with statutory guidance and that children awaiting the service have their cases allocated consistently.
The report also states that over the next three months processes must be implemented to ensure case plans are shared with children and families appropriately and that complaints are managed consistently.
Anthony Douglas, chief executive of Cafcass, said: "In three cases, we did not comply with our own safeguarding framework, which is unacceptable, but no child was placed at risk.
"Ofsted points out areas where we can do better, but sometimes underestimates the positive impact of our work on children in both public and private law cases. But where we need to change, we will continue to do so."
Christine Banim, operational director of Cafcass, added that improving service delivery is a goal for all staff. She said: "The positive comments in the report regarding our work on case recording, assessment and service responsiveness reflects the hard work of our staff over many months to manage rising demand as well as striving to improve our frontline practice."
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