The charity accused councils of not fulfilling their statutory duty in Chaos, neglect and abuse, a report published last week.
The report recommends introducing financial incentives for local authorities and courts to reduce the number of children placed in custody, and calls for all professionals working with young people to receive training on children's rights and local authority duties.
The Children Act 1989 imposes a duty on local authorities to safeguard the welfare of children in need, but the Howard League says UK councils are flouting the legislation.
Chris Callender, assistant director at the penal reform charity, said: "These children have a right to be cared for properly, but if they are not they will wreak havoc in their communities."
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