David Cameron is facing renewed pressure for the UK to take in 3,000 unaccompanied child refugees in Europe amid claims he is failing to deal with the "humanitarian crisis of our generation".
The Home Office should look to the European Union for extra funds to help local authorities support youngsters seeking sanctuary, the Liberal Democrats said.
Ministers should also speed up the time it takes to find foster carers for young refugees and do more to help re-unite them with their families, according to the party.
The Prime Minister has insisted that Britain should concentrate on re-settling orphans from the camps in the region rather than those who had made the crossing to Europe.
But Lib Dem leader Tim Farron warned that taking in 3,000 unaccompanied children who face risk of exploitation is the "least" the UK can do.
He said: "Even conservative estimates suggest there are 30,000 unaccompanied children in Europe. They face risks from smugglers and others who would exploit them, and at least 10,000 children disappeared after arriving in Europe. Hoping this problem will just go away is not enough.
"Britain has a proud history in stepping up and playing our part in confronting crises. This is the humanitarian crisis of our generation and David Cameron and his Government are failing to live up to our proud tradition.
"This report sets out how the UK can play our part by offering a home and a future to 3,000 unaccompanied child refugees. This is the least we can do. It is a first step, but it is an important one. The Government should now act and move to offer sanctuary to these children as soon as possible."