Radical plans to raise the age of care and rebuild Child, Youth and Family from the ground up, have been welcomed as "visionary", by the national children's watchdog.

The Government has revealed its plan to overhaul the embattled state carer, releasing the final review of a high-powered panel, appointed by Social Development Minister Anne Tolley.

The law will be changed to allow vulnerable children to remain in care until they are at least 18, with the option to remain fully in care until they are 21.

CAMERON BURNELL / FAIRFAX NZ Children's Commissioner Dr Russell Wills has described the changes laid out by a high-powered panel to overhaul CYF, as "visionary".

CYF children will also be able to choose whether they keep support services until they are 25. Currently they lose all support they day they turn 17.

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Tolley said Cabinet would investigate whether to increase the Youth Justice age from 17 to 18, to match.

CYF itself would undergo a complete revamp. There would be just one point of entry for a child into the system, so CYF could track the entire path for that child from the beginning.

In response to criticisms CYF did not have children at its centre, the new model would have five core services: prevention, intensive intervention, care support (or support for foster families), youth justice and transition support.

The panel recommended splitting CYF out into its own ministry separate to the Ministry of Social Development, but Tolley said the Government had made no decisions around that yet.

The Government had confirmed however, that there would be more financial support and services for foster carers as well as a National Standards system, to measure the level of care they were providing.

Tolley acknowledged it had been a "constant battle" for some foster carers to fight for resources and support for their children, which was sometimes undermined by the parents from which the children had been removed.

That made it difficult to attract enough quality foster families, and was partly responsible for shocking levels of re-abuse of children placed back with people who had abused them already.

A recent study found 64 per cent of the 61,000 children notified to CYF in 2014 had a previous notification.

Tolley convened a panel of young people who had been through state care, to advise on the inquiry. She had been "left in tears" in her office, when they described their experiences. A permanent panel would be appointed so children could be heard on future issues.

Children's Commissioner Russell Wills said the recommendations from the review were significant.

"The panel has given us a vision and challenge, and they've delivered on their promise," Wills said.

The age of care to provide support to 25-year-olds was recognition that that's how most families worked.

"That's the same as our kids. And there's never been a good reason for children in state care to get support that's different.

"In fact their needs for support are greater than other children's. It's only the right and proper thing to do."

The big risk around the plan was "implementation failure". Wills said the Government had to follow through on the recommendations at the budget.

The panel recommended $500 million of investment would be required in new initiatives, by the 2017 budget.

"These changes are radical, they are challenging and they will require some major investment and commitment. That commitment needs to extend to other agencies with a role to play in the lives of children and to the Cabinet table.

"I trust the Minister will receive full support from her Cabinet colleagues on such promising recommendations," Wills said.

Labour children's spokeswoman Jacinda Ardern welcomed the raising of the age of care, but said it should have gone "hand in hand with raising the age of juvenile court jurisdiction".

"The devil, as always, will be in the detail and in whether the funding and resourcing goes to where it's most needed – early intervention. The last estimate of the cost of child abuse and neglect in New Zealand came in at $2 billion per annum. That is surely evidence of the need to invest early."

Green Party co-leader Metiria Turei said the changes looked "promising", but there was an immediate "funding crisis" within CYF.

"There are children who need the urgent support of CYF today, and they matter.

"There aren't enough social workers, they don't have enough time, the carers need support, and families are waiting."

THE MAIN CHANGES:

CYF itself, will be overhauled and built around five core services: prevention, intensive intervention, care support, youth justice and supported transitions in adulthood.

The age of care will rise from 17 to 18. CYF kids will have the option of remaining in full care until 21, and keep support to 25.

A new independent youth advocacy service to be set up, in partnership with certain independent charities and organisations.

Stronger partnerships with iwi to specifically target Maori children who make up 60 per cent of all kids in care.

Foster carers will be given more financial assistance, but it's not yet clear how much. They will also have greater access to support services, but will be monitored much more closely, with national standards applied.

Direct purchasing will mean CYF can arrange for specialist services for children, as soon as they're needed - similar to the ACC model.

WHAT IS THE CYF MODERNISATION PROJECT?

Tolley announced an overhaul of CYF in April last year, appointing a high-powered panel to lead the restructure.

Lead by senior public servant Paula Rebstock, the panel was given a wide-ranging brief to consider all aspects of CYF operations.

The panel also included Police Commissioner Mike Bush, chief science adviser to the Ministry of Social Development Richie Poulton, former Maori Party chief of staff Helen Leahy and Duncan Dunlop, chief executive of Who Cares? Scotland, an independent advocacy charity for young people.

It released its first high-level "interim report" into the systems used by the state carer in September, calling for a complete overhaul of the way CYF operates.

The final report released on Thursday laid out the technical recommendations and plan to make changes.

Vulnerable children in the care of the state will be looked after until their 18th birthday, with a right to remain in care until they turn 25.

Social Development Minister Anne Tolley has laid out a plan for a complete rebuild of Child, Youth and Family in front of a conference attended by about 80 child care sector representatives.

Among other major changes to the embattled state carer, is the establishment of a new "child-centred operating model".

A HISTORY OF FAILING OUR CHILDREN:

Since its inception, Child, Youth and Family has been under review "almost continuously" and has been restructured at least 14 times. But, despite the massive changes, it has remained "ineffective" when it comes to caring for our children.