For foster children, relatives can make all the difference https://www.economist.com/united-states/2022/06/09/for-foste...
"Research shows that children who have been removed from their parents but brought up by relatives do better in myriad other ways. They are less likely to have a criminal record or become homeless (as more than a quarter of those who have been in foster care or institutions do). Research also suggests why that might be so. Relatives are less likely than foster parents to request that poorly behaved children be removed. And they are more likely to take in groups of siblings, who are routinely separated in the care system."
It also discusses some of the institutional structures that make this difficult (i.e. requiring that relatives become certified foster care participants before they can receive any of the support regular foster care participants receive).