Sorry but I think this is just political waffle. It isn't true anyway that fostered children can't have sleepovers - this was dealt with some years ago by the Children's Minister at the time (think it was Maragret Hodge) and of course foster carers can get children's hair cut.
It was the last govt that produced the weighty "Minimum Standards in Foster Care Regulation" and it was against these standards (many of which were simply unachievable) that LAs were inspected by the then Social Care Commission, now been replaced by Ofsted.
I certainly would not disagree with supporting foster carers and belive that they are the "unsung heroes" of the child care system in this country. I spect 30 years of my working life championing the rights of foster carers as a sw and tm mgr in a fostering & adoption team. I am now retired and know that childrens services are in dire straits, some LAs (especially inner cities) running at 30 to 40% vacancy rates, and you can't run a service like that. Also thanks to Lord Laming, social workers now have to spend around 70% of their time in front of a computer screen instead of out visiting families and supporting foster carers.
However it seems the National Standards are going to be diluted - that's fine until there is a child tragedy in a foster home (and yes sadly they do happen, not often thank god, but when they do, it is usually very serious, often fatal for a child) and then there will be a hoo haa about the foster care regs and they will be beeefed back up again and there will be condemnation of the dilution in standards that is now being taken by Loughton.