The Children’s Commissioner is welcoming government moves to turn CYF around.

A scathing review of Child, Youth and Family recommends a new advocacy service for children in state care - run by the philanthropic sector.

Social Development Minister Anne Tolley said 47 percent of current CYF caregivers are on a benefit.

She said that means we're putting at-risk children into families already stretched and with problems of their own.

Ms Tolley wants New Zealanders to step up with the same compassion they showed over they three year old Syrian refugee who drowned.

"I want that same outpouring for these kids - they are damaged. There were people saying 'I'll take one into my home' well okay - we might not get them a Syrian, but we've got some kids who need them."

Ms Tolley has announced the service is in for a shake up, aimed at focusing less on administrative procedures and more on the children in its care.

That includes raising the age at which children are cut loose from the system, which is currently 17.

The moves are closely aligned to what Commissioner Dr Russell Wills has called for.

He said while a report on the state of the agency makes sad reading, it does set out a promising platform for the next stage of reform with children at the centre.

His colleague and fellow Green MP Jan Logie used Parliament's Question Time to ask if the promised overhaul would include privatisation and a role for Mt Eden prison operator Serco in CYF, as the two organisations already have a working relationship by transferring youth offenders to prisons. 

Ms Tolley outright rejected the notion saying: "the member needs to take her tin hat off.. stop looking for secret agendas".