Sources:
http://www.mirror.co.uk/news/top-stories/2011/03/01/court-backs-fostering-ban-on-anti-gay-christian-couple-115875-22957343/http://www.telegraph.co.uk/news/newstopics/religion/8353512/Foster-parent-ban-extreme-distress-of-anti-gay-Christians-over-ruling.html Basically, the High Court in London ruled that a couples' religious views on homosexuality were trumped by legislation on equality - the two judges ruling that "British society was largely secular and that the law has no place for Christianity" (quote from Telegraph article)
Appears to me that since the couple would be effectively an agency acting on behalf of local government, they have to stick to the equality legislation. The couple were supposedly offered "re-education classes" but the couple declined.
The High Court decision is apparently going to be appealed.
Personally I feel the judges got this one right, and for the record yes I am Christian - hopefully an enlightened one who understands Jesus' message.
PS: for record, Faux Noise has this on their website and the comments below are "interesting".