Complex sentence: Children transitioning out of care may need significant support to transition into the community as their life skills may well be limited, failure to prepare them can lead to a significant number returning to institutions in later life or ending up in crime or prostitution.
Split into simpler sentences: Children transitioning out of care and into the community may need significant support as their life skills may be limited. Failure to prepare them can cause a significant number of them to return to institutions in later life or end up in crime or prostitution.