Experts estimate the system is already short of around 8,000 foster carers, a gap that has been growing year on year.

Even sector leaders who welcome the government’s focus say it does not go far enough. Sarah Thomas, chief executive of The Fostering Network, says the cost-of-living crisis is forcing carers out.

She said: “Foster carers tell us that due to the cost of living crisis, they do not have the funds in order to enable them to continue fostering.

“It is why people are leaving and we really call on the government to ensure they put more investment into the finance and remuneration of fostering in the UK.”

In England alone, the number of approved foster carers has fallen by almost 12% over the past decade. The drop accelerated after the COVID-19 pandemic, just as the number of children entering care continued to rise.

With too few foster homes available, more children are placed far from their communities or moved into residential care – settings that are often more disruptive, more expensive, and in some cases open children up to exploitation and abuse, said Ms Thomas.

Residential care is also far more expensive.

Local authorities spent £4.7bn on residential placements in 2022, according to the Local Government Association – money councils say is increasingly hard to find.

Minister for Children and Families, Josh MacAlister, said: “Reversing the decline in the number of available foster places is an urgent priority for me because fostering is so vital to our wider mission to give vulnerable children the best possible start in life.

“We’re bringing fostering into the 21st century, removing outdated rules and unnecessary barriers to become foster carers as part of our overhaul of the care system.

“Foster carers give children the stable, loving relationships they need to recover from trauma and thrive. If you’ve ever considered fostering, I would urge you to look into this incredible vocation that can transform a child’s life.”