Felicity Collier, chief executive of BAAF Adoption & Fostering, said ringfencing would ensure that every local authority could increase its investment in fostering. She believed most councils would support a "clear benchmark below which allowances cannot fall".
Tony Hunter, president of the Association of Directors of Social Services, agreed in principle with the proposals but said they contained "many devils and details".
He said work was needed to determine the costs of looking after children, whether different ages of children should be taken into account, and what allowances should be expected to cover.
Robert Tapsfield, executive director of the Fostering Network, said his organisation's recommended minimum allowances would provide the Government with an "indicator of required rates".
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