Redbridge Borough Council received the glowing report from inspectors who gave the department its highest rating of "outstanding" overall, following a previously "good" judgment three years ago.
The only category that remained good was the experience of children in care and care leavers which, despite investment, remains "variable", largely due to staff changes at an external provider.
Hampshire and Lincolnshire county councils were also rated among the top providers in the country, having progressed from "good" to "outstanding" since they were last inspected nearly five years ago.
Inspectors, who visited between April and May, said strong leadership was a key factor that had contributed to all three councils' improved ratings.
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