Private Equity in Fostering: Who Really Owns the Agencies?

Fostering is a vital part of the UK social care system, giving children a stable home while their families work towards reunification or permanent placement. In recent years, private equity firms have stepped into the sector, acquiring or investing in independent fostering agencies. This article explains how ownership models work, what they mean for foster carers and children, and how to navigate fostering in Manchester and its surrounding areas.

What Is Private Equity in the Context of Fostering?

Private equity refers to investment by private firms that buy shares or acquire whole organisations, aiming to improve performance and eventually sell for a profit. In fostering, private equity typically purchases independent agencies that operate outside local authority control. The agencies continue to deliver placements, but they are now accountable to shareholders rather than a council.

According to official UK fostering guidance, independent agencies must meet the same statutory standards as local authorities. However, the drive to maximise returns can influence how resources are allocated, how staff are paid, and how quickly new placements are approved.

How Does Ownership Affect Foster Carers and Children?

For foster carers, the primary concern is the quality of support and training. Private equity owners may streamline processes to reduce costs, but they also have access to larger capital pools that can fund new training programmes or technology upgrades. Children benefit from increased funding for specialist services, but they may also experience less flexibility in placement decisions if the agency prioritises cost‑efficiency.

Local authorities still retain the ultimate responsibility for safeguarding children. They can refuse to work with an agency that fails to meet standards, ensuring that private ownership does not compromise child safety.

The Role of Local Authorities and Independent Agencies

Local authorities run fostering services directly, employing carers, providing training, and managing placements. Independent agencies are private companies that operate alongside the council, often filling gaps where the council cannot meet demand. The choice between a council run or an independent agency is a personal one, and each model has distinct advantages.

For example, the Local Authority vs Independent Fostering Agency guide explains that independent agencies can offer quicker placement times and more flexible working patterns, while local authorities often provide more comprehensive support services and a clearer career path for carers.

Benefits of Independent Agency Ownership

• Potential for faster placement decisions due to less bureaucracy.
• Possibility of more innovative training programmes funded by private capital.
• Greater emphasis on specialist placements, such as therapeutic or sibling group fostering.

Benefits of Council‑Run Services

• Direct accountability to the public sector, with transparent funding.
• Integrated support networks, including health, education and social care services.
• Longer‑term career progression for carers within the public sector.

Support and Training: Are Standards Maintained?

Independent agencies are required to follow the same national training curriculum as local authorities. This includes the mandatory Form F assessment, which evaluates a prospective carer’s suitability and readiness. Training covers safeguarding, health, education, and child development.

Private equity owners often invest in digital platforms that streamline the training process. For instance, some agencies now offer online modules that carers can complete at their own pace, reducing the time required to meet initial training requirements.

However, the intensity of support can vary. Some carers report that the focus on cost control leads to shorter in‑person training sessions, while others note that the investment in technology makes it easier to access resources.

Ongoing Supervision and Support

Regular supervision is a statutory requirement. Independent agencies must ensure that carers receive at least one face‑to‑face supervision session per month, supplemented by phone or video check‑ins. The frequency and depth of supervision are governed by the Fostering Allowances 2025/26 Explained guidance, which outlines the expected standards for all agencies.

Carers are also entitled to access specialist support for children with complex needs, such as therapeutic fostering or care for unaccompanied asylum‑seeking children. The agency’s capacity to provide these services is directly linked to its investment strategy.

Payment and Allowances: What Changes with Private Ownership?

Payments to foster carers are structured around the child’s needs, the length of the placement, and the type of service (short‑term, long‑term, emergency or respite). According to official UK fostering guidance and local authority policies, all agencies must pay carers in line with the national payment scale.

Private equity ownership can influence the speed of payment processing. Some agencies have adopted automated payroll systems that reduce delays. Others, in pursuit of efficiency, may consolidate payments into monthly or quarterly cycles. Carers should always confirm the payment schedule with their agency and keep records of any correspondence.

In addition to the core payment, carers may receive additional allowances for travel, equipment, and holiday. These are also governed by national standards, but the method of claiming can differ between agencies.

How Are Allowances Calculated?

Allowances are calculated on a per‑child basis and reflect the child’s needs assessment. The calculation takes into account factors such as age, health requirements, and any special support needed. The agency’s finance team processes these calculations and issues payments through the agreed channel.

Private equity owners often bring in external auditors to review financial processes, which can improve transparency and reduce the risk of payment disputes.

Applying for Fostering in Manchester: Steps and Considerations

Manchester’s fostering landscape is diverse, with a mix of local authority services and independent agencies. If you are considering fostering, the first step is to register with the local authority or an independent agency that operates in the city.

Below is a step‑by‑step guide, adapted from the How to Become a Foster Carer in England Step By Step Guide:

1. Complete an online application form.
2. Undergo a background check, including DBS checks and a health assessment.
3. Attend a mandatory training programme covering safeguarding, health and education.
4. Complete a Form F assessment, which evaluates your suitability.
5. Attend an interview with the agency’s senior manager.
6. Once approved, you will receive a contract and be eligible for payments.

Manchester’s local authority offers additional resources for carers, such as support groups and financial advice. Independent agencies may provide more flexible working arrangements, which can be attractive for those who wish to maintain employment or study while fostering.

Choosing Between Council and Agency

When deciding whether to foster through Manchester City Council or an independent agency, consider the following:

• Support Level: Council services often provide a more integrated support network.
• Flexibility: Independent agencies may allow for part‑time placements.
• Specialist Placements: Some agencies specialise in therapeutic or sibling group fostering.

Consult the Local Authority vs Independent Fostering Agency guide for a deeper comparison.

The Manchester Fostering Landscape: Key Agencies and Nearby Areas

Manchester hosts a range of fostering agencies, many of which serve the wider region including Salford, Bolton and Stockport. Here are a few notable agencies:

• Manchester Foster Care Services (MFCS) – a council‑run agency offering comprehensive support.
• North West Fostering Partners – an independent agency with a focus on therapeutic fostering.
• Salford Independent Care – an agency that specialises in sibling group placements.

Each agency has its own application process, but all must meet national safeguarding standards. The presence of multiple agencies in the Manchester area means that prospective carers have several pathways to enter the system.

Impact of Private Equity on Local Agencies

In recent years, several independent agencies in the North West have attracted investment from private equity firms. While this can bring additional resources, it also raises questions about how decisions are made. Carers should inquire about:

• The agency’s governance structure.
• How training budgets are allocated.
• What support is available for carers in crisis.

Transparency in these areas is critical for maintaining trust between carers, children and agencies.

Common Challenges and Realistic Expectations

Fostering is a rewarding but demanding role. Common challenges include:

• Time Management: Balancing caring responsibilities with work or study.
• Emotional Resilience: Managing the emotional needs of children who may have experienced trauma.
• Financial Planning: Navigating payment schedules and additional costs.

Expect the application process to take several months, and anticipate that the first placement may involve a child with complex needs. Carers should seek peer support groups, such as Mockingbird Constellations, to share experiences and advice.

Preparing for the Unexpected

Every placement comes with its own set of challenges. Agencies must provide clear protocols for dealing with emergencies, medical issues and safeguarding concerns. Carers should review these protocols regularly and keep contact details for local health services and the social worker assigned to their placement.

Frequently Asked Questions

1. How does private equity ownership affect the quality of foster care?

Private equity ownership can bring additional funding for training and technology, but it may also introduce cost‑saving measures. All agencies must still meet national safeguarding standards, and local authorities retain the right to refuse placements if an agency fails to comply.

2. Are payments to foster carers faster with independent agencies?

Some independent agencies use automated payroll systems that can speed up payment processing. However, payment schedules are still governed by national guidelines, so the overall timing should remain consistent across agencies.

3. Can I foster while working full‑time in Manchester?

Yes, many agencies offer part‑time or flexible fostering arrangements. Carers should discuss their work commitments during the application process to ensure that placement schedules are compatible.

4. What support is available for carers of children with complex needs?

Both council and independent agencies provide specialist support for children with medical, educational or emotional needs. This includes access to therapeutic fostering, specialist training for carers and additional allowances for equipment and travel.

5. How do I find out if an agency is owned by a private equity firm?

Agency ownership can often be found on their website or in their annual reports. Carers can also ask the agency directly during the application process or review press releases and news articles that report on acquisitions.