Local Authority vs Independent Fostering Agency (IFA): Which Is Right for You?

Thinking about fostering and confused by the choice between your local authority (LA) and an independent fostering agency (IFA)? You’re not alone. Both routes approve foster carers to look after children in care, both are regulated by Ofsted, and both can offer excellent support. But the way they’re organised, how placements are matched, and what day-to-day support looks like can differ. This guide breaks down the key differences so you can decide what fits your life, skills and goals.

What’s the real difference?

Local authority (LA)

Local authorities are the statutory bodies responsible for children in care in their area. They assess, approve and support foster carers directly and place their own children with those carers first wherever possible. Because the LA holds the legal responsibility for the child, decision-making sits in-house, and their fostering team is part of the wider children’s services department (social workers, Virtual School, leaving-care teams).

Independent fostering agency (IFA)

IFAs are organisations registered with Ofsted to recruit, train and support foster carers. They don’t have legal responsibility for children; rather, local authorities commission (purchase) placements from them when an LA doesn’t have a suitable in-house carer available (e.g., specialist therapeutic care, sibling groups, out-of-area matching, or a tight time window). IFAs must meet the same regulations and standards as LA services.

How placements are matched and commissioned

The placement “market” in practice

When a child needs a foster home, the LA looks first to its own carers. If no match is available quickly, a referral goes out to IFAs, who propose carers meeting the child’s needs. This is why some IFA carers report receiving more varied or urgent referrals, and sometimes more complex ones, while LA carers may be approached earlier in the process for children from their area. None of this is absolute—availability, geography and the child’s needs drive decisions. Ofsted’s national data shows both sectors are significant: in 2023/24 there were 57,065 approved mainstream carers nationally, with new approvals split across LAs and IFAs (around 45% LA and 55% IFA of new approvals that year).

Regional “recruitment hubs”

England is rolling out regional Recruitment Support Hubs to make the front door into fostering simpler for applicants. These hubs aim to inform and triage enquiries, then route you to an appropriate local authority or partner agency. You may hear this branded locally (“Foster with Us”) as regions launch their own hubs and campaigns.

Allowances, fees and your household budget

The national minimum allowance (England)

Every foster carer receives a weekly allowance for the cost of caring for a child (food, clothing, utilities, transport, etc.). In England, the national minimum fostering allowance is set by the Department for Education and updated each April; it varies by the child’s age and by region (London, South East, Rest of England). For 2025/26, the published minimums range roughly from £170 to £299 per week depending on age and region. Local authorities at least meet these minima and may add local top-ups.

Fees (the carer’s “skill payment”)

Many fostering services, especially IFAs and some LAs, pay an additional fee on top of the allowance to recognise your skills, training and the complexity of placements. Because IFAs operate via commissioned placements, their total packages (allowance + fee + extras like mileage/training) can often be higher than an LA’s baseline—though this is not universal and varies by area, experience and placement type. Compare written offers carefully and ask for examples for the age range you’re likely to foster.

Don’t forget tax

Foster carers benefit from Qualifying Care Relief, which provides a generous tax-free threshold plus a weekly amount per child; most carers pay little or no tax on fostering income. (You’ll still complete self-assessment.) Factor this into any pay comparison. (For rates and worked examples, check HMRC’s current guidance.)

Support, training and supervision

Your supervising social worker

Both LAs and IFAs allocate you a supervising social worker (SSW) who visits regularly, supports you at reviews and helps with training and safer caring. IFAs often emphasise wrap-around support—some run out-of-hours teams, therapy access, education advisers and peer-support groups. Many LAs offer similar supports via their children’s services and may have strong local networks (Virtual School, in-house clinical teams). The quality here is about the specific team, not just the label “LA” or “IFA”—read Ofsted inspection reports for the service you’re considering.

Training pathways

Expect mandatory pre-approval training (e.g., Skills to Foster) and ongoing CPD. IFAs sometimes package specialist courses (therapeutic parenting, PACE, de-escalation) because of the referrals they receive; many LAs offer equivalent programmes. Ask for an annual training calendar and how many hours are funded each year.

What kinds of placements might you see?

Babies, teens and specialist care

Patterns aren’t rules, but many carers find LAs are more likely to offer younger children from their own area first, while IFAs often receive older children and more urgent or specialist referrals when in-house options are full. If you’re open to teenagers, siblings, or therapeutic placements, both sectors will value you—but IFAs may bring a wider geographic spread of referrals. Your approval range and your home’s location are the biggest determinants.

Stability and matching

Stability hinges on matching quality, not sector. Look at a service’s placement-stability data and how they handle introductions, risk assessments, and post-placement support. National narratives often debate commissioning and costs—some reports criticise high IFA fees and the role of private equity in parts of the market, while others stress the need for choice and capacity to secure the right home first time. Understand the debate, then choose based on the specific team’s practice and your experience at enquiry.

Practicalities that matter day to day

Mileage, contact and equipment

Ask how school transport, family time (contact), clubs and holidays are funded. The allowance is meant to cover ordinary costs; mileage, equipment and extras are often reimbursed separately. Policies vary—request them in writing so there are no surprises later.

Who attends which meetings?

With an LA, your child’s social worker and your SSW are from the same organisation, which can speed up decisions. With an IFA, your SSW is from the agency and the child’s social worker is from the LA—good teamwork is essential, but you might benefit from two professional voices championing your needs.

Transferring later: how easy is it?

Foster carers can move from one service to another using nationally recognised transfer protocols. The key principles are cooperation between services, safeguarding the child’s welfare, and avoiding gaps in support. If you have a child in placement, the process focuses first on what’s best for that child and may involve joint meetings and agreed timelines. Always check the notice period in your current agreement.

Who might prefer a local authority?

You want closer ties to your local services

If you like the idea of your supervising team being in the same organisation as the child’s social worker, school improvement services and leaving-care support, the LA model can feel joined-up. It may also suit you if you want to focus on children from your immediate area (shorter journeys to school and contact).

You’re aiming for early calls on local referrals

Because LAs place with their own carers first, you may hear about matches earlier—useful if you’re open to a narrow age range or particular school locations.

Who might prefer an IFA?

You want breadth of referrals and specialist support

IFAs cover multiple councils, so you might see more varied referrals, including therapeutic, emergency and sibling groups. Many IFAs package enhanced support, small caseloads for SSWs and 24/7 help—valuable if you’re fostering teens or complex needs.

You’re comparing financial packages

While allowances are anchored to the national minimum, IFA fee structures can make overall payments higher in some areas—especially for experience or specialist approvals. Get figures for the exact age range and needs you’ll take, and weigh those against travel and time commitments.

Ten questions to ask any service at enquiry

1) What do your last two Ofsted reports say?

Read the inspection narrative, not just the grade. Look for comments on support, stability and safeguarding.

2) What placements are you short of right now?

You want a realistic picture of demand for your home (age range, siblings, disabilities, UASC).

3) How many carers does each SSW support?

Lower caseloads often mean more responsive support—ask how out-of-hours works.

4) How are allowances, fees and extras structured?

Request written rates by age band and examples of extras (mileage, birthdays, holidays, equipment). Check when payments start and how often they’re made.

5) What’s your training offer in year one and year two?

Look for therapeutic parenting, de-escalation, safer caring, and recording/report writing refreshers.

6) How do you approach matching?

Who reads referrals? What questions do they encourage you to ask before saying yes?

7) What happens if an allegation is made?

You need a transparent policy, access to independent support and clarity on timescales.

8) How will you support my own children?

Good services think about birth-child preparation and check-ins.

9) Can I speak to two current carers?

Peer conversations are gold—ask for carers with similar household profiles.

10) If I ever transfer, what’s the process?

A professional answer that references national transfer protocols is a good sign.

Balancing the public debate about costs and capacity

There’s lively debate about costs, profits and commissioning—particularly the share of placements provided by private-equity-backed IFAs and the impact this has on local budgets. Policymakers have signalled plans to increase regional recruitment and strengthen rules to curb excessive profits while protecting stability. For applicants, the takeaway is this: capacity, quality, and stability matter most to children, and excellent practice exists in both sectors. Let the team you meet, the support you feel, and the fit for your family be your deciding factors—alongside being an informed citizen who follows policy updates.

Bottom line: how to choose

Match the route to your situation

If you want hyper-local placements, joint decision-making under one roof, and you’re settled within one council area, your local authority could be ideal. If you want wider referral flow across councils, potentially enhanced fees and specialist support—particularly for teens, siblings or therapeutic care—an IFA may suit you better. Either way, read Ofsted reports, compare written packages, ask the questions above, and speak to real carers.

Act now—demand is high

England continues to face a shortage of foster carers while the number of children in care rises. Both LAs and IFAs are actively recruiting, and the government-backed hubs are designed to help you start well. If you’re ready to explore fostering, make your initial enquiry today and use this article as your checklist for choosing the right route for you—and the children you’ll welcome home.