Powys Council has described the report was 'thought-provoking'

It found "fundamental problems" including a very limited range of services and staff not always having appropriate skills and qualifications.

The social services inspectorate said the council had responded quickly but services were "at a crucial stage".

The council said it accepted the report and has earmarked �6.8m extra money over the next two years.

The report is part of a rolling programme of reviews by the Social Services Inspectorate for Wales and Auditor General for Wales.

It also found arrangements for families to access help, to assess children's needs and to make plans for them, all need to be improved.

ACTION AREAS: Council to develop better political management and leadership A strategy to improve children's services Services for adults that increase opportunities for living independently Services need to meet challenges of a dispersed population and workforce Source: SSIW/Auditor General for Wales

The review found the council had "inconsistent services" and that problems in children's services had "adversely affected the lives of vulnerable children and their families".

An interim report last summer found that 30% of staff posts were unfilled and employees were working 60 to 80 hours a week, leaving them dissatisfied and failing to carry out some file recording work properly.

'Anxious'

Powys council said it accepted the report, which was "thought provoking and challenging" and set "significant targets" for the coming years.

It said it had already agreed �6.8m in new money over the next two years, with a 20% increase in frontline staff dealing with child care.

Five new town centre bases would be set up to improve community involvement and management structures would be improved.

Councillor Rosemarie Harris, board member with responsibility for social care said: "We have accepted their findings and have drawn up a detailed action plan to make sure those necessary improvements are delivered.

"A great deal of work has already taken place. The council was anxious to take immediate action during the inspection process and not wait until a final report was published."

Chief inspector of social services Graham Williams added: "A new and purposeful approach appears to be emerging within the council. It has responded immediately to deal with the issues identified by the reviewers. We will be monitoring closely the way in which these changes are delivered".