In its report into the school admissions process, the Education and Skills Select Committee found that admissions authorities "set aside" guidance that the admission of children in public care should be given priority in over-subscribed schools.
The MPs said this highlighted the weakness in arrangements "for protecting the interests of vulnerable children".
Their report said: "The fact that the Government's intention to prioritise children in public care in the school admission process is expressed as guidance rather than duty is a matter of grave concern.
"It bodes ill for the realisation of other aspects of the Every Child Matters agenda. The welfare of children in public care, many of whom suffer multiple layers of disadvantage, must be an absolute priority."
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