It is unlawful for any local authority to discriminate against gay people as adopters or fosterers. I work for several local authorities who are proactive in seeking gay and lesbian couples and individuals to adopt and especially foster. You don't want to believe everything you read in the papers!
I don't believe in paid surrogacy no. I simply don't understand how paying someone (usually desperate and in a third world country) to rent their womb is regarded with any less abhhorence than we would regard, for example. taking their kidney for payment (as opposed to willingly and freely for a friend or loved one donated).
Imho that is a whole new discussion and is irrelevant in this one.