Darlington, Leicester, South Gloucestershire and Telford & Wrekin councils have been short-listed for Beacon status for looked-after children.
The Improvement and Development Agency, which manages the scheme designed to identify and spread best practice in local government, said the four authorities had been nominated under the new Care Matters theme, selected by ministers. This refers to the government's white paper on children in care, which it will introduce legislation on this year.
Beacon status will be awarded to authorities who put in place the key proposals in Care Matters, provide effective services for children on the threshold of care and their families and have sound corporate parenting arrangements, among other criteria.
The government will decide which authorities will receive Beacon status, and this will be announced next March.
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