The council says the improvements are ongoing
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Significant improvements have been made to social services in Cumbria, after officials were given a zero rating two years in a row.
Government inspectors say major progress has been made in improving children's services in the county.
The Commission for Social Care Inspection (CSCI) had criticised Cumbria County Council for failing the area's vulnerable children.
But the CSCI says there is now more investment and better planning.
In 2004 Cumbria County Council was named as one of just eight authorities to have been given a zero rating.
But on Tuesday, Robert Lindsey, lead inspector for the CSCI, told council chiefs they had "significantly improved" services.
His report says substantial investment has been made in children's services, most notably services for children with a disability.
It also highlights improvements to management, better reporting systems and recruitment procedures.
The council reacted to poor ratings by bringing in a new head of social services and launching a major review.
Responding to the new report, John Mallinson, cabinet spokesman for care and social services, said: "The highest priority of all members of this council is to have safe and robust systems in place to protect children in our care.
"We have given strong support to our social services department, including an improvement performance plan and increasing the budget significantly over the last few years."
Child protection
County council leader Tim Stoddard added: "Although many improvements have been made we recognise that much more work is still to be done.
"Because the next overall star rating for social services in Cumbria will not be published by the inspectors until November, sadly social services still has a zero star rating.
"However, the success achieved so far should undoubtedly move us from a zero to a one star rating."
The latest inspection concentrated on the provision of services and safeguarding of children in need, children on the child protection register and services for children with a disability.
It covers the year up to November 2004