Why more children are entering residential care and why foster carers are needed now more than ever
Date published
19 August 2025
19 August 2025
Across the UK, thousands of children and young people rely on the care system every year. The majority are placed with foster families, but an increasing number are moving into residential care settings such as children’s homes. While residential care can provide structure and support, it is widely recognised that growing up in a family environment offers children the best chance to thrive.
At Nexus Fostering, we believe every child deserves to feel safe, loved, and part of a family. That’s why we’re calling for more people to come forward and consider fostering.
Residential care means a child or young person lives in a children’s home, rather than with a foster family. These homes are staffed by professionals who provide care, supervision, and support.
Children’s homes can vary in size, some are smaller, with a handful of young people, while others are larger, more institutional settings. They are often designed to support children who have more complex needs, or when no suitable foster family is available.
While residential care can offer stability in some situations, it cannot always provide the sense of belonging, consistency, and family life that children need to grow and flourish. That’s why fostering is so vital, to give children the chance to be cared for in a loving home environment.
In England, there are currently over 83,000 children in care. Around 67% live with foster families, but a growing percentage are entering residential care homes.
Across the UK, around 10–16% of looked-after children are in residential settings. In some regions, this number is rising each year.
Local authorities often turn to residential care not because it’s the best option for the child, but because there are simply not enough foster families available when a placement is urgently needed.
Residential care is most often used for teenagers rather than younger children.
As of 2024, more than 70% of children living in children’s homes were aged 14 and over.
Fewer than 10% were under the age of 10, showing that residential settings are not commonly used for younger children.
This reflects the reality that it is harder to find foster carers for teenagers, even though they desperately need the love, stability, and encouragement a family home can bring.
Teenagers in residential care may have experienced multiple placement breakdowns or have more complex needs, but that does not mean they cannot thrive in a foster family with the right support.
Residential care is sometimes the right option, especially for children with very complex needs. But evidence shows that children generally do better in family-based care:
Emotional well-being: Living with a foster family provides children with a sense of belonging and stability that can be hard to replicate in a residential home.
Education: Children in foster care are more likely to attend and succeed in school compared to those in institutional settings.
Future outcomes: Care leavers from residential homes are statistically more likely to face challenges such as homelessness, unemployment, and poor mental health.
Family life offers something unique, day-to-day love, encouragement, and the experience of being part of a supportive household.
Care leavers, young people transitioning out of the UK’s residential care system, face significantly higher risks of homelessness, unemployment, and mental health challenges compared to their peers.
Homelessness: Approximately one-third of care leavers become homeless within two years of leaving care. Care-experienced individuals account for up to 25% of youth homelessness figures, despite being a smaller proportion of the population.
Employment & education: 39% of care leavers aged 19–21 are not in education, employment, or training, compared to 11.6% of all young people.
Mental health: Care leavers are approximately four times more likely to have a mental health disorder than children who grew up with their birth families. Nearly half of looked-after children meet the criteria for a psychiatric disorder, compared to 1 in 10 children generally. 24% of care leavers report having a disability or long-term health problem, compared to 14% in the general population.
These statistics underscore the urgent need for targeted support and interventions to improve the life outcomes of care leavers, particularly in housing, employment, and mental health services.
The rise in children entering residential care isn’t just about individual needs, it’s about demand outstripping supply.
More children are entering care each year, due to factors such as family breakdown, mental health challenges, and safeguarding concerns.
There aren’t enough foster carers, particularly those able to care for teenagers, sibling groups, and children with additional needs.
With fewer fostering options available, local authorities often have no choice but to place children in residential care.
This means more young people are missing out on the benefits of growing up in a family environment.
Every new foster carer helps reduce the pressure on the system and gives a child the chance to grow up in a family environment instead of an institution.
By fostering, you could:
Give a teenager stability at a critical stage of their life.
Keep siblings together when they need each other most.
Offer a safe, nurturing home where a child can begin to heal.
At Nexus Fostering, we provide 24/7 support, expert training, and a strong community so you’ll never feel alone on your fostering journey.
The rise in residential care is a warning sign: too many children, especially teenagers, are missing out on the chance to grow up in a family. With more foster carers, we can change that.
Every child deserves the warmth of a home, a place at the dinner table, and someone cheering them on. If you’ve ever thought about fostering, now is the time to act, contact us today.
News
19 August 2025
