Financial naivety among councils is denying around 1,000 young people in care the chance to be adopted, according to a report published last week by think tank Policy Exchange.
The No Place Like Home report says many councils are failing to use voluntary adoption agencies based on "misconceptions" surrounding the costs involved.
They are balking at paying a one-off average fee of £24,080 to agencies, instead leaving children in care at an annual cost of £25,000.
Agencies told researchers that some councils are even delaying adoption proceedings until the start of a new financial year, so it doesn't impact on their annual budget.
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