The report called Every Budget Matters has surveyed staff at 100 care homes and residential care providers and found that too often decisions surrounding children are "financially led and not in their best interests".
Half of those surveyed said they did not trust commissioners to make decisions in the best interest of the child.
The report says: "Many had examples where children and young people had been moved out of stable placements where they were happy and doing well against their will and outside of the remit of their care plan. Such moves were blatantly financially led, or in response to local changes in placement strategy or services."
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