Government promises ‘urgent action’ to reverse foster carer decline

Latest figures published by Ofsted show that the number of fostering households fell to 33,435 at the end of March 2025 – a 10% drop since 2021 – intensifying pressure on local authorities already struggling with placement sufficiency.

The Department for Education confirmed that a consultation will launch in early 2026 on a package of fostering reforms, backed by new children’s social care funding announced at the Spending Review. Ministers say the changes are intended to expand the pool of people able to foster, improve support for carers and reduce reliance on residential placements.

Children’s minister Josh MacAlister said the reforms would form part of the government’s wider attempt to reset a system he has repeatedly described as “in crisis”.

“Fostering changes lives – not just for children who need safety, stability and love, but for the families who open their homes to them,” MacAlister said. “We know the number of foster carers has been falling, and that is why this government will be taking decisive action.”

The announcement follows warnings MacAlister issued earlier this month to directors of children’s services that the sector faces a “once-in-a-generation” opportunity to reform children’s social care – but only if it moves at pace. Speaking at the NCASC conference, he said falling foster carer numbers were driving children into residential care, where outcomes are poorer and costs significantly higher.

A shortage of foster placements has been linked to rising use of residential provision and unregistered accommodation, particularly for older children and those with complex needs. The Casey Audit highlighted how this trend can leave children more exposed to exploitation, instability and poor long-term outcomes.

According to the Department for Education, the forthcoming reforms will focus on:
• widening eligibility to foster by removing “unnecessary barriers”, including for people with full-time jobs or existing families;
• better support to help carers balance fostering with work and family life; and
• developing new, flexible models of fostering shaped by carers and frontline practitioners.

Ministers argue that increasing placement stability is central to improving children’s outcomes and reducing late-stage crisis intervention – a theme MacAlister has repeatedly emphasised since taking office.

In his NCASC speech, he described the care system as being trapped in a “doom loop of ever-increasing late-stage crisis costs”, with fostering shortages contributing to a “failed market model” in residential care. He confirmed at the time that plans to expand the foster carer workforce were imminent.
Children’s Commissioner Dame Rachel de Souza welcomed the commitment but warned that shortages were already having severe consequences for children.

“Too often [children in care] are denied loving relationships and a safe home because of a shortage of safe, caring homes,” she said. “No child should be considered too complex for foster care, yet many are instead placed in unregistered or semi-independent accommodation with little scrutiny.”

She said she looked forward to working with the minister to set “ambitious targets” for increasing foster carer numbers, so more children can grow up in family environments close to their communities.

The government has also used the Christmas period to highlight the experiences of foster carers and care-experienced people. Amy Burns, founder of Messy Fostering, who entered care at 14, said fostering “saved my life”.

“I suddenly found myself surrounded by adults who not only taught me how to advocate for myself, but were there to catch me when things weren’t going quite right,” she said.

While the reforms are being framed as part of a longer-term transformation of children’s social care – alongside Families First, regional care cooperatives and the Children’s Wellbeing and Schools Bill – sector leaders are likely to scrutinise whether the measures go far enough to address workload pressures, financial strain and the emotional toll on foster carers.

Further details of the proposals are expected in the new year, with the government saying it will work closely with local authorities, fostering agencies and carers to ensure the changes lead to a “sustainable, high-quality fostering system”.

For many in the sector, the test will be whether this latest commitment marks a genuine turning point – or another promise made against a backdrop of deepening need and shrinking capacity.