Title

FINANCE

Charity in 'unsustainable' fostering warning

The fostering system in the UK is under ‘unsustainable strain,’ with ‘hard-won improvements’ at risk of being eroded, a report has warned today.

The fostering system in the UK is under ‘unsustainable strain,' with ‘hard-won improvements' at risk of being eroded, a report has warned today.

Charity The Fostering Network said the current system was undermining the terms, conditions and recruitment of foster carers.

It found only 42% of foster carers said their allowance covered the full cost of looking after fostered children, compared to 80% in 2014. 

Charity chief executive, Kevin Williams, said: ‘This report paints a picture of a fostering system which is under unsustainable strain and which is being held together by the goodwill and commitment of thousands of dedicated foster carers.

‘Our fear is, that with austerity biting, the cracks within the fostering system are only likely to get bigger, and – for the sake of the stability and outcomes of tens of thousands of children fostered each year – this cannot be allowed to happen,' Mr Williams added.

Council leaders warned that while the number of children on protection plans had risen by 60% since 2008, funding cuts will leave children's services with a shortfall of £1.9bn in the next three years.

Chair of the Local Government Association's children and young people's board, Cllr Richard Watts, said: ‘Shortfalls in funding from Whitehall have left significant deficits in already depleted budgets.

‘The actions of some independent fostering agencies, which can charge councils more than double the cost of in-house placements while making substantial payouts to shareholders, saw more than £40m diverted away from services for vulnerable children and into the profits of just eight independent agencies in 2014/15.'

FINANCE

Council finances at a crossroads

By Owen Mapley | 18 September 2025

Owen Mapley looks at the progress made with local government finances since Keir Starmer’s party came to power and the urgent reforms still required under a ...

FINANCE

Levelling the paying field

By Martin Ford | 17 September 2025

With a host of newly-minted unitaries set to spring up around England in the coming months and years, Martin Ford looks at the thorny issue of pay harmonisation

FINANCE

Caution urged on fair funding flexibilities

By Martin Ford | 16 September 2025

Experts have urged caution after Whitehall officials are understood to have privately mooted allowing councils to balance budgets over a longer period than a...

FINANCE

EXCLUSIVE: Judicial review threat for food waste laggards

By Dan Peters | 16 September 2025

English councils that fail to offer separate food waste collections to all homes from April could face judicial review, a Whitehall insider has warned.

Popular articles by Laura Sharman