
Some 43,475 households were approved for fostering in 2017/18, down 460 from the previous year, according to the Fostering in England report.
Despite a rise in the number children being placed, foster carer levels are insufficient to meet accelerating demand.
Last year, the number of children and young people going into foster care rose by around 1,000, compared with 2016/17.
However, the report states: "Filled places increased more than approved places increased, leading to a 5 per cent decrease in vacant places."
Support service The Fostering Network, claimed that retention of carers could be the problem.
The network's chief executive Kevin Williams, said: "While recruitment has remained steady, the number of foster carers leaving the profession has risen.
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