The warning from Amerdeep Somal has been made after she investigated three complaints about the way Derby City Council handled such applications.
She found that the council failed to consider specific family needs when offering a travel allowance when young people met its criteria for support.
The money offered did not cover the cost of transport but Derby still expected this to be used to get teenagers to school without considering affordability issues faced by families, Somal found.
In one case the allowance offered to cover taxi costs was £4,240, which left the young person facing a shortfall of £11,800 a year as she had to share a taxi with another family at a cost of £144 a day.
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