Instead, children's minister Margaret Hodge said the Department for Education and Skills would concentrate on providing greater "support and recognition" as it recruits an extra 6,000 foster carers.
But Felicity Collier, chief executive of the British Association for Adoption and Fostering, said that while the proposals could go some way towards increasing recruitment, it would have little effect on retention.
"We have got to have a radical review of how we remunerate foster carers," she said. "It is not a cheap option.
"It would be very helpful to have a much greater commitment to remunerating carers for the levels of skills and qualifications they have.
"Otherwise it will be very difficult to keep them."
She called for foster carers to be paid a retainer at times when not looking after children.
"Of course, we welcome anything that may help. But, for example, we know that the last national recruitment campaign wasn't successful.
Yes, foster carers need support, but we think they need financial support."
The education department's recruitment drive will comprise: a campaign publicity pack to be sent to councils to help them recruit more foster carers; plans to expand existing national helpline support and advice for foster carers; a new national award for foster carers; and a three-year grant to the Fostering Network to encourage people to consider fostering.
Hodge said: "Foster carers make a real difference to a child's life, whether they are providing a home for a child just for a night, a week, months or years.
"I want to make sure that they get the support they need and recognition for their valuable role. However, the work does not end here. We will continue to identify new ways to improve support to foster carers and highlight the vital work they undertake with around 40,000 children a year."
The Government and the Fostering Network have joined forces to produce a recruitment guide, Good practice guidelines on the recruitment of foster carers.
The network's project manager, Vicki Swain, said: "Although some local authorities already have good recruitment strategies in place, others are struggling.
"These guidelines bring together and share best practice from across England. They also touch on the equally important issue of retention."
The publicity packs will be tailored to suit local needs and will be made available to local authorities. Each pack consists of two posters, a selection of photographs on CD-Rom, three leaflets and advice on running campaigns. Local authorities can request additional posters, leaflets and packs.
