Ofsted’s Latest Fostering Data: Supply, Demand and Retention

Fostering in England remains under intense pressure. The newest Ofsted annual release (covering 1 April 2023 to 31 March 2024) shows fewer fostering households for a third consecutive year, with approvals still not keeping pace with leavers. Meanwhile, demand for placements continues to rise and the wider care market is getting more expensive and more fragile. Here’s what the data says—and what it means for carers, applicants and agencies in 2025.

The picture in numbers

• Fostering households: England ended March 2024 with 42,615 fostering households, down from 45,370 in 2021. In 2023–24 there were 4,055 new approvals but 4,820 households stopped fostering—an annual net loss of 765. That’s the third year running with a net decline.
• Households by provider: Mainstream local authority (LA) households remain the largest group; independent fostering agencies (IFAs) also represent a substantial share, with the full split available in Ofsted’s underlying data tables.
• Children needing care: The Education Committee notes 83,630 looked-after children in 2024, up more than 20% since 2014—evidence that demand is not easing while the supply of carers has been shrinking.

Why retention is biting

The Fostering Network’s synthesis of Ofsted figures highlights the reasons carers leave: financial pressure, inconsistent support, and feeling that their professional role isn’t respected. Those themes mirror feedback from many services and appear to be persistent drivers of attrition.

At the macro level, this matters because stability depends on experienced carers who can support complex needs (teenagers, siblings, UASC, and children with disabilities or trauma). When experienced carers step back, local authorities face either poorer matching or higher-cost alternatives, which in turn increases system stress.

Demand and cost pressures

Two broader market signals frame Ofsted’s fostering data:

1. Residential costs have surged. The National Audit Office recently reported average spend for residential placements in England at ~£318,400 per child per year in 2023–24, up sharply from 2019–20, with warnings about a “dysfunctional market”. As costs rise, the incentive to expand fostering capacity (the most family-based option for many children) becomes even clearer.
2. Market concentration and IFA dynamics. Reporting this summer indicated that nearly a quarter of foster places are now provided by private-equity-backed IFAs, prompting debate about profits, pricing and resilience if a large provider were to fail. Whatever your view, these trends underline the need for robust local commissioning and healthy, well-supported in-house fostering to protect sufficiency.

Recruitment: where the funnel is leaking

Earlier Ofsted analyses showed very high initial enquiry volumes but significant drop-off before approval—followed by net losses when more households deregister than join. In the year to March 2023, for example, 125,195 enquiries produced 4,080 approvals while 5,125 left. The 2023–24 cycle improved approvals slightly (4,055) but still not enough to offset leavers (4,820). In short, the funnel is still net negative.

Common friction points include: timescales (assessment fatigue), uncertainty about allowances vs fees, worries about tax and benefits, contact with birth families, and the perceived intensity of the role—especially for teens. Tackling these barriers inside the process (clearer expectations, better applicant care, early training and peer support) improves completion rates.

What Ofsted’s 2024 data means for 2025 planning

1) Build for retention first.
Given the pattern of three consecutive net losses, the fastest way to stabilise capacity is to stop leakage. Services that reduce placement strain (e.g., respite on tap, trauma-informed training, Mockingbird-style peer constellations) typically report better retention and placement stability. Ofsted and sector bodies have flagged the value of consistent supervision, swift support with allegations, and practical help around education and CAMHS waits.

2) Support the people who can take complexity.
The biggest pressures are often teenagers, siblings and children with high support needs. Align recruitment messages, training and fees to these needs; be explicit about 24/7 support, de-escalation training and wrap-around services.

3) Make money matters transparent.
Confusion about allowances vs carer fees is a known dropout cause. Put your 2025/26 package in writing (allowance, fee/skill payment, birthday/holiday, retainer, mileage, respite, equipment). In a high-inflation context and with NAO-flagged costs rising elsewhere, competitive, transparent packages help prevent transfer or exit.

4) Shorten the assessment journey.
Time kills motivation. Services that invest in front-loaded training, buddying with experienced carers, and tight panel scheduling convert more enquirers to approvals—critical when Ofsted’s headline is a net loss again.

Are the new recruitment hubs helping?

There are green shoots. Over 60% of councils are now collaborating in regional recruitment and retention hubs (“Foster with Us”-style models), backed by DfE funding. Early practice points include unified marketing, shared applicant tracking, and peer networks that reach into the first year of caring—all of which target the two weak points in the system: conversion and retention.

What to watch next

• Next Ofsted dataset: Ofsted’s 2024–25 collection closed in June 2025; expect the compiled statistics and commentary later in the year. Keep an eye on the trendline for approvals vs leavers and any changes in the household mix (e.g., kinship/connected-persons growth).
• Parliamentary scrutiny: The Education Committee has been active on care market concerns and sufficiency; any policy shifts on commissioning or profit caps could reshape incentives and provider behaviour.
• Cost pressures: NAO and media coverage of escalating residential costs will keep the spotlight on sufficiency plans, making in-house fostering and retention core to local strategies.

What this means if you’re…

…a prospective carer:
The need is real, particularly for teens, siblings and high-needs placements. Look for services that spell out support, training, and out-of-hours cover, and that are transparent about allowance + fee. Ask to speak to current carers before you commit. The trend data shows your approval is genuinely impactful right now.

…an approved carer considering leaving:
Before you exit, explore transfer options or additional support. Many services can arrange respite, adjust matching criteria, or offer enhanced packages for complexity. Given the national shortage, your experience is highly valued; services are under pressure to keep you.

…a local authority or IFA lead:
Put retention KPIs on the same footing as recruitment KPIs; publish clear pay structures; invest in peer support models; and prune assessment delays. Use the hubs to share pipelines and marketing data; align incentives so that the “funnel” stops leaking between enquiry, Stage 1/2, and panel.

Bottom line: Ofsted’s latest fostering dataset confirms a continuing supply shortfall in the face of rising demand. Until retention improves and approvals consistently outnumber leavers, England will struggle to provide the right family for every child who needs one—and costs elsewhere in the system will keep climbing. The levers are well known: support, respect, pay clarity, speed—and community. The services that execute on those will bend the curve first.