Probation leaders have called on the Government to reverse a decision which has seen paedophiles moved into the community with "inadequate supervision".
The call came after an official report exposed potential dangers to children which were caused by a ruling introduced two years ago in the wake of a tabloid newspaper campaign.
Chief Inspector of Probation Andrew Bridges said the decision by former home secretary John Reid to bar paedophiles from probation hostels near schools had a "profound effect" on the number of places available.
Some areas of England and Wales had seen paedophiles moved out of hostels and into other accommodation where they were less well supervised.
Reacting to the findings, assistant general secretary of probation union Napo, Harry Fletcher, said: "Mr Reid's ill-thought through decision must be reversed without delay.
"The introduction of this ruling in 2006 was an unnecessary knee-jerk reaction to a tabloid newspaper campaign.
"It has disrupted treatment projects and undermined public protection - and the consequences are still with us.
"Hostels are the safest and best option for keeping paedophiles under control."
The chief inspector's report found 14 out of 100 mainstream hostels were prohibited from housing offenders convicted of sexual offences against children aged under 16 years.
"This pronouncement had originally been made by the Home Office in June 2006...in response to a national newspaper campaign about child sex offenders," it said.
