The report, by Sir Roger Singleton, focuses on progress made since Lord Laming's recommendations on child protection one year ago.
It warns that simply making efficiencies in central and local government will not generate enough cash to fund changes in safeguarding practice.
Instead, government must independently assess the extra costs facing local agencies and Cafcass, to inform the basis for providing additional funding.
Singleton's report questions whether Ofsted's remit should be expanded to include more of an improvement support role.
He explained: "In such a sensitive and complex area as child protection the inspection agencies must play a critical role in ensuring that the lessons from inspections are learned and acted upon at the frontline, as well as being used to influence policy."
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