London: Children who go missing from care are being relentlessly exploited and groomed for sex by gangs of men, MPs warned last night.

They said appalling failings in the care system that allowed a group of Asian men to rape girls in a recent case in Rochdale were common across the country.

In a devastating report, the MPs branded the system of residential care as 'not fit for purpose' and called for an urgent inquiry.

It costs more than £1 billion (Dh5.7 billion) a year to provide 5,000 vulnerable youngsters with supposedly around-the-clock care but the report accuses police, council staff and officials responsible for protecting them of systematic failures that put them at risk.

It highlighted a series of shortcomings that mean youngsters are moved around the country to poorly run and unwelcoming homes where staff fail to safeguard them.

Labour MP Ann Coffey, who led the parliamentary inquiry, said the scandal went unnoticed until it was highlighted by the Rochdale case.

“What we have in place falls dramatically short of what is needed to protect some of society’s most vulnerable children,” she said. “Dangerous predators are exploiting large gaps in the system and targeting children.

“The system is far from fit for purpose and needs an urgent rethink to address these failings.”

MPs found professionals responsible for looking after some of the country’s most troubled children in private and local authority care homes are failing to keep them out of danger when they go missing.

Many people, including carers, often see them as “troublesome” and a “drain on resources” rather than potential victims.

In many cases children at risk of sexual abuse were labelled as “promiscuous”, even when sex was taking place with adults. Staff reported suspicions that children were involved in “prostitution” 631 times over the past five years.

The findings come just weeks after nine Asian men were jailed for a total of 77 years for grooming teenagers for sex in Rochdale.

The young white victims were incapacitated with drugs and alcohol before being raped. All had been known to social services. The parliamentary inquiry found children in care are three times more likely to run away than those who live at home.

Almost half of children in care are placed outside their local council boundary and some are sent hundreds of miles from home - a major factor causing them to run away.

The watchdog body Ofsted was criticised for refusing to tell police the names and locations of care homes, citing 'human rights' and 'data protection'.

The report said this meant officers were left in the dark and could miss vital opportunities to spot paedophiles targeting homes.

Ofsted was also criticised for labelling care homes as “good” or “outstanding” despite poor records.

MPs attacked the quality of care staff after hearing there was little training and many homes relied on unqualified agency workers.

Matthew Reed, of the Children’s Society, said the situation was “unacceptable”. “It is critical that all areas of the country have a safety net in place, so that every time a child goes missing from care they are protected,” he added.