The Nationwide Story Writing Competition for Looked-After Children is open to eight- to 18-year-olds and will open on 29 October.
The competition is looking for stories or poems that show positive experiences of children's time in care.
The three winners will receive £500 each. The contest is being organised by the Timeout Foundation, a charity formed by Timeout Children's Homes.
Jonathan Stanley, manager of the National Centre for Excellence in Residential Child Care, said: "This competition is a wonderful new addition for the sector. Supporting creativity has always been an essential task and a core value for residential work with children. I hope this is the start of many more ways of supporting positive images of looked-after children."
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