Children's Minister Josh MacAlister has warned that private companies providing child social care in England will be forced out of the sector if they are found to be profiteering. Ministers are currently conducting an urgent review of these providers' financial stability and have signaled that a cap on profits could be introduced.

In response to a growing crisis, the government has launched an £88 million plan to recruit 10,000 new foster carers. MacAlister described the campaign as a "call to arms," comparing its urgency to the Homes for Ukraine initiative. The strategy includes £25 million to help prospective foster parents renovate or expand their homes, trial programs for part-time fosterers, and new regional hubs designed to widen the search for suitable candidates.

The scale of the challenge is significant. Currently, more than 80% of residential homes for children are run for profit. Taxpayer spending on this type of care hit £3.1 billion in 2023-24, with some individual placements costing more than £300,000 a year. Meanwhile, the number of approved foster carers has dropped by nearly 12% over the last ten years.