The Children's Bill, published last week, only extends the duty to local authorities and Children Now understands that Hodge wanted it to apply to governors.
But school standards minister David Miliband argued vigorously against the proposals, saying they would place too great a burden on schools.
An alliance of charities and the Association of Directors of Social Services will lobby for an an amendment to the Bill, to bring in school governors.
Hodge told Children Now: "One of our objectives is to achieve better educational outcomes for looked-after children. We are still thinking about how to do that."
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