THE cost of looking after child asylum seekers has left Oxfordshire taxpayers £1m out of pocket, acording to Oxfordshire County Council.

The Government is supposed to reimburse local authorities for schooling, foster care, counselling, interpreting and other services for unaccompanied asylum-seeking children.

But Louise Chapman, the council's cabinet member for children, young people and families, said funding settlements over the past two years had left the county with a shortfall of £997,810 - adding to pressure to increase council tax.

She spoke out after the council produced a joint statement with eight other local authorities expressing "major concerns" about the particular pressures they faced.

The councils said they spent £100m looking after more than 3,000 young asylum seekers in 2006-7 and 2007-8 but faced a shortfall of £35m.

The unaccompanied under-18s represented about 10 per cent of all children in care. Many had left their homes in violent and traumatic circumstances and were in poor health.

The report called for full reimbursement of cash, and clearer legislation to establish who was responsible for paying for what.

Ms Chapman said: "People want to come to Oxfordshire because of the opportunities and we have got a duty of care for some of the most vulnerable people you can think about.

"But we are trying to make sure Government funds the costs."