The government has announced plans to create 10,000 additional foster care placements in England by relaxing fostering rules and reducing bureaucracy. Ministers say the changes are needed to address a critical shortage of foster carers, which has led to more vulnerable children being placed in residential children’s homes rather than family settings.

Under the proposals, it will become easier for people who work full time to foster, and outdated eligibility criteria used by some councils will be reviewed. Clearer guidance is also expected to encourage people from a wider range of backgrounds, including those from ethnic minority communities, to come forward. An additional £88m has been pledged to support reforms to the fostering system.

Official figures show the number of foster carers in England fell by 12% between 2021 and March 2025, with 1,140 fewer foster placements available over the past year alone. During the same period, the number of children placed in residential care rose by 9%. Spending on children’s homes has almost doubled in five years, reaching £3.1bn in 2023–24, according to the National Audit Office.

Children and families minister Josh MacAlister said reversing the decline in foster placements was an “urgent priority”. Although around 150,000 people expressed interest in fostering last year, just over 7,000 were approved. The government believes modernising the system could significantly increase capacity before the end of the current parliament.