The finding comes from research by Grandparents Plus and Family Lives, the charities calling for more recognition and support for the vital role played by family members and friends who step in to take care of children, known as kinship carers.
More than 200,000 children in the UK are looked after by grandparents and others because their parents are unable to take care of them.
The analysis found that if every child looked after by kinship carers were fostered instead, local authorities would face an average additional cost of £14.8million each.
Local authorities are not currently required to provide any financial assistance to kinship carers, even if they live below the poverty line.
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