Thousands of children are languishing in residential homes or being forced to travel miles to temporary placements due to a severe shortage of foster carers.

Local authorities say that they urgently need at least 5,250 foster carers to come forward this year to look after children who cannot live with their own parents because of abuse or neglect. The shortage is most acute in Manchester and the North West of England, where 760 carers are needed by the end of the year.

There are also severe problems in London, the South East and East Anglia, according to research by the Fostering Network charity. Although there have previously been reports of a shortage of foster carers, this is the first time that the exact shortfall has been calculated.

The Fostering Network contacted hundreds of local authorities and asked them how many new foster carers they need to recruit this year to meet the needs of the growing number of children coming into the care system. Over the next fortnight the charity will urge people to think about fostering.

Other research by the Fostering Network found that one in five children in care had been forced to change school twice or more as a result of placements, with one in 20 moving schools at least four times.

The shortage of carers often results in brothers and sisters being forced to live apart if the carers available can take only one or two children. It also results in unsuitable placements, such as teenagers living with carers who specialise in looking after babies.

Robert Tapsfield, chief executive of the Fostering Network, said that many people had the qualities to be great foster carers but did not realise it. “Without these much-needed new foster carers, too many children will continue to be denied stability in their home and school life, which is key to success later on,” he said. “While almost anyone can apply, foster carers need special qualities and some people will be more suited. This year's campaign identifies the qualities needed - like being optimistic, having good listening skills, being able to see things from a child's point of view and having a sense of humour.”

Foster carers are the backbone of the care system for children and 68 per cent of “looked after” children are cared for by foster families. On any one day, more than 50,000 children are living with 43,000 foster families. Placements vary from a few months to several years.

The Government has shied away from agreeing to pay foster carers for their work. There is an allowance of £105 to £155 per week per child, depending on ages, but that is to cover costs.Some local authorities pay fees in some circumstances, but the Network described the system as random. It believes that the increased demands now placed on foster carers, such as specialist training, report writing and attending court hearings with the children, means they should be paid like residential care workers on £17,000 a year.

The fostering system has been criticised recently after the local authority in Somerset rejected the application of a Taunton couple who admitted smacking their nine-year-old as a last resort. Critics said that the authority had overreacted, given that it was willing to consider people with a criminal record.

Times recommends

• The Joy of Sex: why you need help in bed
• Don't move - improve
• Adoption: finding my birth mother