A quarter of the 1,600 children held in young offenders' institutions (YOIs) in England and Wales have been in care, a report by prison inspectors has found.
Chief inspector Nick Hardwick said the figures were of "real concern" and showed a lack of progress over care.
His report also found that of 10 random detainees interviewed on their release, seven reoffended within three months.
The Ministry of Justice said the government would outline its youth justice reform plans shortly.
The report found many youngsters were being released with inadequate support and, in some cases, without an address to go to.
Three of the 10 detainees interviewed as part of the inspectors' research were back in custody within a month, the report added.
'Abuse and neglect'
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"Accommodation was often not confirmed until close to the young person's release or, occasionally, even the day of release," Mr Hardwick said.
"This affected young people's opportunity for early release and meant that some ended up in unsuitable accommodation.
"The most common reasons for children going into care are abuse, neglect or family dysfunction. It is perhaps unsurprising that in our survey, those who said they had spent time in care reported more vulnerability and greater need than those who had not.
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