Independent Fostering Agencies in 2025: Costs, Outcomes and Regulation

What is an Independent Fostering Agency (IFA) – and why they matter in 2025

Independent Fostering Agencies (IFAs) are organisations—mostly charities or private providers—approved by Ofsted to recruit, train and support foster carers, then provide placements to local authorities. In practice, councils try to use their own “in-house” carers first; when they can’t (because the match isn’t right, needs are more complex, or there’s simply no capacity), they commission a placement from an IFA. Scale-wise, IFAs are a major part of the system rather than a niche: the Competition and Markets Authority (CMA) found that about 36% of foster placements in England are made via IFAs.

The 2025 money picture: what “costs” actually mean

When people ask “how much does an IFA placement cost?”, there are three different layers worth separating:

1) The child’s maintenance allowance (paid to carers)

England’s national minimum fostering allowance is set centrally and uprated each April. For 2025/26, the weekly minimum ranges from £170–£299, varying by the child’s age and by region (London, South East, Rest of England). Many fostering services (councils and IFAs) top this up, but nobody should be paying less than the minimum.

2) The carer’s fee/professional payment

In addition to the allowance (which covers the child’s day-to-day costs), most carers receive a fee recognising the skill and time involved. There’s no national fee framework yet, so rates vary by service, experience, training and placement complexity. Sector surveys have repeatedly called for clearer, more consistent fee structures to aid recruitment and retention.

3) The placement price charged to a council

This is the full weekly cost a local authority pays to an IFA for a placement, and it may include the child’s allowance/fee, agency support (supervising social workers, 24/7 on-call, therapy/training offers), recruitment costs and overheads. Prices vary significantly across England depending on needs (for example, solo or parent-and-child placements), geography and urgency. Comparing that figure with a council’s “in-house” cost isn’t straightforward—sector bodies have shown how like-for-like unit cost comparisons can be misleading if overheads and support packages are treated differently.

Wider financial context

Even though fostering is where the system wants more capacity, budget pressure is being driven hardest by residential care—with average costs in children’s homes now reported at over £318,000 per year per child. Those inflationary pressures influence commissioning choices and increase the urgency to recruit more foster carers (in-house and via IFAs) to avoid expensive residential step-ups where a family placement would do.

Outcomes: what “good” looks like—and who judges it

How Ofsted inspects IFAs

IFAs are inspected against Ofsted’s Social Care Common Inspection Framework (SCCIF) for independent fostering agencies. Inspectors look first at children’s experiences and progress—placement stability, safety, education, health and voice—then at how well the agency supports carers to achieve those results (supervision, training, matching, safeguarding and leadership). Ofsted does not inspect individual carers; it inspects the organisations that recruit and support them.

What the national data is telling us

Ofsted’s latest annual overview shows the fostering sector under strain for capacity but relatively stable in quality, with incremental growth in the provider base (IFAs counted 332 at March 2024). Across fostering, the share of filled places remains around the 60–62% mark (similar for councils and IFAs), underlining the persistent gap between approved capacity and real-world matching. The pinch points are experienced carers for teens, siblings and high-needs placements.

Do IFAs deliver “better” outcomes?

Some industry groups argue IFAs outperform council services on inspection results and stability; others point out that caseload mix and needs profiles differ, so simple comparisons can be unfair. What matters most for prospective carers is the package of support—24/7 help, consistent supervising social workers, respite, and access to specialists—that enables stable, child-centred care regardless of provider type. (This is exactly what Ofsted probes under SCCIF.)

Recruitment in 2025: hubs, campaigns and why this helps applicants

England is piloting Regional Fostering Recruitment & Support Hubs—often branded “Foster with Us”—so that prospective carers have a single front door into fostering across a region. The idea is simple: stop making applicants shop around 10+ council websites; give them one place for advice and triage, then pass them to the right council or partner for assessment. Government has backed hubs with ring-fenced grants and national comms, while regions stand them up with shared training and marketing.

Practically, that means an enquiry from, say, West London or Kent now lands with a regional team that can talk through options—local authority or IFA—before the applicant chooses where they’ll feel best supported. Early evidence from councils and partners suggests hubs are raising the volume and quality of enquiries, though the system still needs experienced carers most, not just volume.

Regulation and system reform beyond 2025

Ofsted and statutory guidance

For IFAs, Ofsted registration and inspection remain the core regulatory pillars, with the SCCIF last updated in 2024 to reflect changes elsewhere in children’s social care. Providers must evidence safe recruitment, robust safeguarding, appropriate matching, carer training and supervision, as well as good leadership and governance.

Regional Care Co-operatives (RCCs) and commissioning

Alongside hubs for recruitment, government is trialling Regional Care Co-operatives (RCCs) to plan and commission placements (fostering, homes and secure) at regional scale, aiming to tackle shortages and reduce price spikes by pooling demand and building provision closer to home. Pathfinder areas were confirmed in late 2024, and outcomes will be watched closely by both councils and IFAs.

The supply crunch: where IFAs fit

The latest Ofsted fostering statistics show filled places at roughly 60–62%, a vacancy level that masks how hard it can be to find the right match for a child on any given day. The system loses more fostering households each year than it gains, due to retirement, burnout, cost-of-living pressures and the emotional load of complex care. IFAs play a crucial role here by broadening the pool—bringing in carers from outside council borders, specialising in complex needs, and standing up rapid placements when emergencies arise. The strategic aim in 2025 is not “IFAs versus councils”, but sufficient, local, stable fostering whichever route a carer takes.

Pricing and value: what councils buy from IFAs

Councils purchase a package, not just a bedspace. Typical IFA offers include 24/7 on-call, high-frequency supervision, therapeutic support, enhanced training (PACE/trauma-informed), and respite—costs that sit behind the scenes but often determine whether a placement stays stable. The CMA’s market study (spanning fostering and homes) highlighted concerns about provider finances and leverage in parts of the sector, prompting ongoing scrutiny of commissioning and margins—especially in residential care, where costs have escalated fastest. For fostering, the emphasis in 2025 remains on transparent pricing tied to measurable outcomes like stability, school attendance, health and voice of the child.

What to check if you’re choosing between an IFA and a council

Support and supervision

Ask who your supervising social worker will be, their caseload, how often they visit, and how quickly you get help out of hours. Consistent supervision is the bedrock of safe, confident care—and it’s exactly what Ofsted probes.

Training and specialisms

Look for pre-approval training (“Skills to Foster”), then ongoing CPD in therapeutic approaches (PACE, NVR, de-escalation), safeguarding, digital safety and education advocacy. If you’re interested in a specialism—parent-and-child, therapeutic, UASC, sibling groups—see which providers truly invest in those pathways.

Placement matching and stability

Ask how referrals are shared with you, what information arrives up front, and how a provider avoids rushed matches. High-quality agencies (LA or IFA) will encourage you to say no if the match isn’t safe—and they’ll have a plan to make “yes” placements succeed.

Fees, allowances and expenses

Confirm the split between allowance (child’s costs), fee (your professional payment), and extras (mileage, birthdays, holidays, equipment). Cross-check that the allowance meets or exceeds the national minimum for 2025/26, and that fees increase with skills and qualifications over time.

2025–26: what’s likely to change next

• Recruitment Support Hubs should mature, with more consistent branding (“Foster with Us”), shared training and regional marketing. Expect clearer hand-offs to assessment teams and better tracking from enquiry to approval.
• Commissioning at scale via RCCs could shift how placements are bought, with a stronger focus on sufficiency plans and building provision closer to children’s communities.
• Allowances will continue to update every April—publish a short “rates update” each spring to secure search demand and keep carers informed.
• Inspection focus will stay trained on lived experience and progress, with SCCIF remaining the touchstone for quality.

Bottom line

Independent fostering agencies are a core channel for children to live in family homes when councils can’t find the right in-house carer. In 2025, the debate is less about “public vs private” and more about capacity, stability and transparency: can we recruit and keep enough well-supported carers, buy the right support at a fair price, and keep children close to their communities? The answer will depend on how well hubs improve recruitment, how RCCs reshape commissioning—and how consistently providers (councils and IFAs) demonstrate the outcomes Ofsted is already inspecting for.