Councils have made progress on adoption and family placements, but levels of looked-after children being given final warnings or convicted of various offences are "flat-lining", revealed inspectorate chair Dame Denise Platt.
Speaking prior to the publication of local authority delivery and improvement statements, she said the educational attainment of looked-after children was also falling way short of national targets.
But she said child protection services were improving with more reviews "taking place at the right time" and progress being made towards all cases having an allocated social worker.
Platt was addressing an inter-agency conference on the Children Bill and went on to give a powerful critique of the Bill and the Government's strategy for integrating children's services.
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