The Children's Society says the Government must urgently increase the amount of funds available for local authorities if they are to continue providing quality children's services.
In a new report, it warned that children's services were "at a breaking point" after years of cuts to funding despite growing demand.
Ahead of the Spending Review, it is calling upon the Government to increase core grant funding by at least £3.1 billion up until 2025.
Alongside an increase in funding, it said systemic change was needed in order for local authority-operated children's services to be sustainable in the long term.
However, it also said more work needed to be done to understand what was driving the rise in demand for children's services.
According to figures, between 2008 and 2018, the number of looked after children rose from 59,400 to 75,420.
Committee Chair, Clive Betts MP, said the current approach was not sustainable and that the Government needed to look at whether demand upon children's services could be reduced.
"Supporting vulnerable children is one of the most important duties that local authorities provide," he said.
"It is vital that we have the right support available in every part of the country, to ensure that vulnerable children get the support they need.
"Over the last decade we have seen a steady increase in the number of children needing support, whilst at the same time funding has failed to keep up."
It was the task of the Government, he continued, to "ensure that the funding formula actually allows local authorities to meet the obligations for supporting children that the Government places on them".
"We have reached a crisis point and action is needed now," he added.
