Teenagers in Bradford Social Services care are living in guest houses because of a critical shortage of foster parents.
The revelation comes as Health Secretary Frank Dobson prepares to announce on Monday that local authorities will be given tough new targets next year to improve the lot of children in care.
Eight teenagers - some as young as 15 - are staying in bed and breakfast accommodation in what one councillor admitted was "a tragic shame".
They are given the telephone number of a social worker and in some cases are left to fend for themselves over a weekend.
And during the week visits are at the discretion of social workers, said Coun John Godward, chairman of the services to children committee.
But today the situation was described as "appalling" by groups which look after young people.
Rachel Johnson, support service team leader at the City Centre Project in Bradford, said: "This is really bad. It's bad for 16 and 17-year-olds to be in bed and breakfasts, never mind 15-year-olds. They should not be put in a situation where they are vulnerable to crime and drug misuse - it isn't giving them a good start in life."
Tarzan Almas, of Barnardo's at Shipley, said: "It's an appalling thing that young people are having to go into bed and breakfast accommodation.
"The Council could buy a place in a foster home from the independent sector for £150 to £200 per week, but a B&B probably costs half that.
"A social worker is not enough for a 15 or 16-year-old, they need a family. I can imagine a bed and breakfast would be almost the pits."
Joy Atherton of the charity Nightstop, which arranges emergency accommodation for homeless young people, said: "These young people are being failed by the system."
The disclosures by social services chiefs come as they grapple with a £1 million overspend in children's services. A total of £2.15 million has been set aside for this year, but Council bosses expect the true total to be £3.42 million by March.
Extra cash is being sought from the Government, but cutbacks will have to be made across social services to balance the books.
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