The think-tank, Policy Exchange, has called for radical reform of fostering services in England and Wales. A report published by the organisation has shown that in some instances severely disadvantaged children are waiting for over a year for a foster placement and that the life chances for many children in the system are appalling.

The report reveals a 16% increase in the number of children in a foster placement during 2006-2011 and that the needs of children in foster care are becoming more varied and more challenging. Combined with a shortage of carers, this has led to a situation where there are limited foster homes available.

Based on interviews with children in care and foster carers, information from freedom of information requests and analysis of existing research, the report found concerns over the inconsistent level of financial support available to the carer and the lack of contact between the carer and social worker.

Despite the frequent breakdowns of inappropriate placements, local authorities can still be reticent to turn to private and third sector providers. Acting as both purchaser and supplier of fostering services, many local authorities display a bias towards in-house provision. This is even true when non-local authority providers might deliver better outcomes for the child in question.

These problems mean that some 48,530 children are now in a care system that is letting many of them down and is in radical need of reform. While the UK currently spends £1.2billion a year on fostering services, the failures of the system will cost the taxpayer a lot more in the long term.

Around half of children in care have been diagnosed with a mental disorder. Educational outcomes are appalling with only around a third of children in care achieving the expected level in English and Maths at Key Stage 2. Over a quarter of all adults serving prison sentences previously spent time in care and almost half of all under 21 year olds in contact with the criminal justice system have spent time in care.