In its response to the committee's report on progress in implementing children's services reforms it says "there are already substantial resources available to bridge the transition from firefighting to more effective prevention".
It comes as the Social Services Finance Report survey shows three quarters of local authorities are forecasting an overspend in children's services.
This overspend will form the bulk of a 1.5bn shortfall in council budgets.
The rising complexity of some children's needs are cited by councils as key reasons for the cost pressure, says the report.
John Coughlan, chair of the Association of Directors of Social Services, children and families committee, said the level of funding was continuing to limit preventative work. "It's clear councils are good at financial husbandry and managing money. The fact there is a continued struggle must be saying something about the level of funding."
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