The government-commissioned review, conducted by Sarah Thane, former chair of the Royal Television Society, is intended to bring 40-year-old legislation up to date. There were only three television channels and reality TV was not yet invented when the existing rules were written.
The review includes proposals to introduce greater professional status for the role of children's chaperones, to recognise the important part they play in safeguarding, and more guidance on working hours for child performers.
It also recommends freeing amateur dramatics organisations from licensing requirements, to give children more opportunity to perform in local productions, as well as advocating removing the ban on under-14s taking part in performances other than ballets or musicals.
Children's Secretary Ed Balls said Thane's recommendations would allow children to get the most out of performing, while making sure they receive a good education and are protected from exploitation.
"It is important we celebrate the talents of young people and continue to enjoy their inspiring performances in shows like Oliver and in programmes such as Britain's Got Talent," he said.
He added: "It is right that children are given the opportunity to develop their creativity, talent and confidence and young people should continue aspiring to perform. As a society we can also learn from careful and sensitive insight into children's lives given by films and documentaries, and children learn from programmes such as Blue Peter."
