Rochdale Council acknowledged its shortcomings after local government ombudsman Patricia Thomas found its social services for children guilty of "maladministration causing injustice".
Mr Elliott, not his real name, said the council failed to advise him of the implications of caring for the baby, who was not related to him but was the half-brother of his own children.
The ombudsman found the council had not made "even the most cursory of checks" on Elliott's ability to be able to care for the child.
Steve Titcombe, head of child care at Rochdale Council, said: "We have learned from these mistakes and policies and procedures within the childcare service have been improved to ensure there is no repeat."
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