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Foster Care on the Market: Swedish Independent Foster Care Agencies in an International Context

Author

Listed:
  • Evelina Fridell Lif

    (Department of Social Work, Stockholm University, Sweden)

  • Tommy Lundström

    (Department of Social Work, Stockholm University, Sweden)

  • David Pålsson

    (Department of Social Work, Stockholm University, Sweden)

  • Marie Sallnäs

    (Department of Social Work, Stockholm University, Sweden)

  • Emelie Shanks

    (Department of Social Work, Stockholm University, Sweden)

Abstract

In recent decades, a new type of organisation—independent foster care agencies (IFAs)—has emerged in Sweden and other countries. These organisations operate outside the public sector, marking a significant shift in how foster care is provided. The presence of IFAs signifies the establishment of a foster care market, where responsibilities once managed by child welfare authorities are now outsourced. In this article, the position of IFAs in the Swedish foster care market is analysed. IFAs are viewed as intermediaries facilitating the provision of foster homes and often providing support to foster families. As IFAs primarily operate as for‐profit entities, they are analysed within the context of market dynamics and financial considerations in child welfare. The study is based on data from the state inspectorate, including a register of IFAs, framework agreements outlining the requirements for IFAs, and a national survey on IFAs, which includes social workers’ assessments of quality and costs. In Sweden, there were around 400 IFAs in 2024, ranging from large care corporations to small companies, frequently used by child welfare services. As for the services provided by IFAs, professionals hold mixed views, with some questioning their value for money. IFAs are an international phenomenon, and they have faced criticism for generating large profits from foster care services. The entrance of IFAs represents a form of radicalisation of the “love or money” dichotomy that has been a recurring theme in the foster care field.

Suggested Citation

  • Evelina Fridell Lif & Tommy Lundström & David Pålsson & Marie Sallnäs & Emelie Shanks, 2025. "Foster Care on the Market: Swedish Independent Foster Care Agencies in an International Context," Social Inclusion, Cogitatio Press, vol. 13.
    • Handle: RePEc:cog:socinc:v13:y:2025:a:10368
    DOI: 10.17645/si.10368
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    References listed on IDEAS

    as
    1. Lindqvist, Erik, 2008. "Privatization of Credence Goods: Theory and an Application to Residential Youth Care," Working Paper Series 750, Research Institute of Industrial Economics, revised 23 Sep 2008.
    2. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
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