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The Parliamentary Under-Secretary of State for Education (Josh MacAlister)
It is a pleasure to serve under your chairmanship, Sir Jeremy. I thank both the hon. Member for South West Devon (Rebecca Smith) for securing the debate and other Members for their interventions. This is my first opportunity to talk about the fostering action plan in Parliament, so I thank the hon. Lady for allowing me to set out some of the details and to respond to the points she rightly raised.
Since my appointment last September, I have made renewing our fostering system my No. 1 priority as the Minister for Children and Families. Through extensive engagement and discussion, we have pulled together a bold plan, recognising the urgency of the problem that faces us. Earlier this month, we published our action plan, six-week consultation and call for evidence to renew fostering and create 10,000 additional foster care places by the end of this Parliament. We have done this 100 years on from the Adoption of Children Act 1926—the centenary of adoption and fostering as we know it—which created much of the framework that we now work within.
Now is the time to renew our fostering system. Foster care numbers are in decline: the total number has dropped by 12% since 2019, and we face a major demographic challenge because around one third of current carers are over 60, which will compound the problem in the years ahead. There are currently appalling conversion rates and unacceptable delays in approving carers. The 150,000 inquiries made last year only saw 7,300 newly approved foster carers, and 59% of fostering assessments in local authorities take more than six months.
All that is driving pressure on residential care, resulting in children living in residential care settings when they could—and should—be living in family-based homes. There was a 24% increase in children living in residential care between 2020 and 2025, with the number now at over 18,000 children. Yet research looking at children’s needs shows that 45% of children in residential care have the same level of need as those in foster care. The result of that pressure on many foster carers is poor matches, a lack of support and an outdated rulebook that signals a lack of trust and respect. The total impact of all that on our children is that too many are forced to live away from their school, friends and family. There are too many matches that mean they do not get the connections they need, and too many are in residential care when it is not the right fit for them.
The status quo and fostering decline run at complete odds with our wider reforms to children’s social care. It means that we are breaking rather than making lifelong, loving relationships and driving the cost escalator towards ever-expanding residential care, and there is evidence of profiteering. Between 2020 and 2025, spending on residential care doubled to £3.7 billion. Our wider reforms will keep more families safely together and mean greater support for kinship options. They are backed by a major reform programme and £2.4 billion of additional spending. Even with all that, renewing our fostering system demands real focus, national leadership and ambition. I will set out the actions we are taking to give thousands more children in care the choices they need to have the enduring relationships that must become the obsession of the care system.
First, to make sure that the whole of the English system is galvanised by the target that we have set of 10,000 care places, we are renewing local authority fostering teams and expanding fostering hubs that have made meaningful progress to take on the full end-to-end process. We are pushing fostering hubs to take on the whole process rather than just the initial inquiry stage. According to our plans, the majority of local authorities in England this year will recruit and train foster carers in end-to-end hubs. Those hubs will be held to account for rolling out the most effective features of existing hubs, so that we can get the conversion rates up. We will also launch new hubs in the coming weeks.
Further to that, we will create the second wave of regional care co-operatives with greater clarity: they will not simply be commissioning bodies but directly create provision and be tied to fostering hubs. To respond to the points raised around IFAs by the hon. Member for South West Devon, the RCC’s role is in many respects to strike a better relationship with the not-for-profit and profit-making sectors in both fostering and residential care. Throughout the whole process of building the plans I have engaged with independent fostering organisations and will continue to do that. They have value to add into the process and can bring innovation into it. But I want to add a word of caution: there is evidence from Competition and Markets Authority studies that profit-making independent fostering bodies cost more on average than local authority fostering, and it is being done for profit.
With the direction of travel that we have seen the residential care system going in, we are now at a point where about 90% of all residential care is run on a for-profit basis and where the largest companies demonstrate behaviour that amounts to profiteering. I do not want to see that replicated in the fostering system, so we need to grip it before that happens. Market failure will be the result of inaction from the Government in this field, and I will not tolerate that.
All other local authorities that are not in an RCC or a fostering hub will be set stretching targets to approve, and we will set new standards on the process overall. Ofsted will update its inspection framework to hold those local authorities to account. We are also consulting on whether the role of fostering panels for approvals should be changed, and whether that adds value to the process commensurate with the time and cost involved in those fostering panels. We will launch a digital platform to speed up the process. All of that should speed up conversion rates and get more approved carers as soon as possible.
Could the Minister say a little more about how foster carers from within families will be handled in this process? That is really important. Also, how will the reunification process work, so that we can reunite a child with their birth family?
Josh MacAlister
My hon. Friend is at risk of taking me off down two very important subjects that I would love to spend an entire Westminster Hall debate talking about. Briefly, I want to see the fostering approval system change so that it is sensitive to the differences between approving, for example, a known person to that child who will only ever foster that child, and approving foster carers who are doing it through the more conventional route. The problem at the moment, as I have heard from many kinship carers, is that they are held to standards that are just not appropriate. Grandparents are being given a hard time because they vape, or because they have only one spare room and they are wanting to look after two grandchildren. I want all that swept away so that we can have a common-sense system that gets behind the people who are already in that child’s life and love them, so that that becomes the central focus of how we structure the care system.
Similarly for reunification practice, it is important that people recognise more widely that the route from living with parents to living in care often involves going back and forth many times, and it should not. We need to build a care system that can wrap around families and parents who might be struggling. The option of part-time foster care or family fostering can offer real value. I did a radio call-in this morning on that very point and spoke to a young care-experienced person called Mary who had that experience of moving in and out of care. I think she said her mum was bipolar. Mary’s mum loves her and can offer some care and support to her, so it would be great if the care system could bolster Mary’s family rather than replace Mary’s family, if it is safe to do so. That is what we should try to do at every step with the care system.
Secondly, we will scale and support innovation to get new carers and look after the ones who are already caring, because retention is as important as recruitment. We will double down on Mockingbird, the programme of support for existing foster carers, funding another 100 constellations. We will also set new standards of support for all carers so that they can benefit from the features that make Mockingbird such a success. We will take Room Makers, first started in Greater Manchester—a programme that sounds very similar to the one mentioned by the hon. Member for South West Devon—to national roll-out. At least £25 million will fund extensions or renovations so that children can stay connected for longer, or grow up with their brothers and sisters in the same house. We will launch a fostering innovation programme to bring forward even more new thinking, with a focus on new and flexible models of care, like weekenders, step down, and specialist care and support for retention.
Specifically, I have been delighted to work with colleagues in the Ministry of Justice to set up a new programme to scale up remand fostering so that children do not unnecessarily enter young offender institutions. Through all of that, we will encourage partnerships between fostering hubs and independent fostering associations, as the hon. Member for South West Devon has highlighted. Renewing fostering means opening up to new models of care and new families. The Government welcome that innovation.
Thirdly, we will rewrite the rulebook around fostering, prioritising making foster care feel human, loving and normal for children, and respected and supported for carers. We have launched a rapid consultation on changes to the allegations process, which has been a source of complaint for many years. We are doing that so that it is fairer for carers and does not unduly rock existing strong relationships.
We have launched a call for evidence on a range of issues, including a foster care national register and consistency of allowances. We will be setting out a process of analysing the variation of allowances across the country in order to highlight the point that hon. Members have raised. We will make some changes around the distinctive role of kinship and connected carers in fostering, and the training and support that they need. That will lead to a rewriting of national minimum standards and other statutory guidance for fostering at the earliest opportunity. We will take immediate steps to clarify that foster carers must be respected in conversations about their child among professionals. We are also immediately taking action to clarify that the day-to-day decisions about children, such as permissions to get haircuts and overnight stays, should be made by foster carers by default, not exception.
We are rewriting the rulebook to put long-lasting relationships first, and that will be part of wider action to take on myths about who can and cannot care. Our vision is a fostering system built on relationships that last. By recruiting and retaining more carers, acting regionally, innovating, supporting families and simplifying the rules, we will create thousands more foster families across England that are closer to children’s communities and schools. We know we can do that because the appetite is there in the country; we are just failing to convert it. We have done it in recent history: the Homes for Ukraine scheme showed what we can do when confronted with a problem. Civic society and Government can be mobilised in harmony towards a shared goal.
This is a decisive moment for fostering in England; together we will ensure that every child who could thrive in foster care has the option of a home to grow up in, with the love, stability and opportunity that they deserve.
Question put and agreed to.