According to the government, up to 75% of looked after children have no qualifications when they leave care and face a life of unemployment or low-paid jobs.

The National Literacy Association and the Who Cares? Trust believe that encouraging reading is one way of improving their chances.

They say children in care homes or foster homes who are often moved from placement to placement throughout their young lives do not get the same attention as those with stable families.

The Who Cares? Trust says many suffer from low self-esteem and low expectations.

"Parents often read to their children at home and children in care do not have these advantages," said a spokeswoman.

"It is a question of equal opportunities. We believe literacy is the key to improving a child's life chances."

Charlie Griffiths, project director of the National Literacy Association, said: "Looked after children are just like any other children, a mixture of strengths and weaknesses, the same range of abilities, skills and talents."

Practical advice

The two charities are launching a report, Breaking Their Fall - Meeting the Literacy Needs of Looked After Children, on Tuesday which gives practical advice on how care workers can help children to read.

For example, it says that children in care must be allowed access to books and to choose and keep their own books.

It also points out that care workers should both read to children in care and ask them what they enjoy reading to encourage their interest.

The charities believe care workers and foster carers should be specially trained in literacy skills, that children in care should be given access to information technology and that those with reading difficulties should be immediately assessed for dyslexia.

The report will be issued to social workers, residential care home staff and foster carers in all areas of the UK.

Last week, the government published guidelines on how local authorities can improve their work with looked after children.

One of the key areas was education.

Jenny Robson, programme director of the Who Cares? Trust, welcomed the guidelines.

The trust has done a number of studies in the area of education and literacy, for example, it gave book vouchers to 100 children in care and asked carers to help them read the books.

A spokeswoman said there was "a noticeable leap in literacy rates" as a result.