Can my fostering allowance change after a foster to foster transfer?

A fostering allowance may change after a foster-to-foster transfer because payments are set under the new agency’s financial arrangements and may be assessed against the placement, your approval and the level of care required. The transfer itself does not automatically preserve the payment package you received from your previous agency, so the proposed arrangements should be checked before you agree to move.

What may make up the payment package?

The term “fostering allowance” can refer to more than one payment. A new agency may separate or combine elements such as:

• a maintenance allowance intended to contribute towards the child’s everyday costs;
• a professional fee or payment for the foster carer’s time and skills;
• additional payments linked to the child’s assessed needs or the type of placement;
• agreed expenses, equipment or activities connected with the child’s care; and
• payments that apply only in particular circumstances, such as certain types of placement or approved specialist arrangements.

For that reason, comparing only one headline figure can give a misleading impression. A higher-looking allowance may include costs that another agency lists separately, while a lower figure may exclude payments that are available subject to specific conditions.

Which factors can affect the amount?

The new agency will usually consider the terms of its own payment scheme alongside the information transferred about the placement. Relevant factors may include the child’s age, day-to-day needs, level of supervision, health or educational requirements, contact arrangements, and whether additional support or resources are needed. Your approval category, experience and any specialist skills may also be relevant to the payment structure.

The agency should explain whether the proposed amount applies to the current child only or would also apply to future placements. It is also important to ask whether the amount is fixed, reviewed periodically, or dependent on the continuation of particular circumstances.

What should be confirmed before the transfer?

Ask the new agency for a written breakdown rather than relying on a verbal estimate. It should be clear:

• how much is intended for the child’s maintenance and how much is a carer fee;
• which additional payments or expenses may be available;
• what evidence or approval is needed to claim extra costs;
• when payments will begin under the new arrangement;
• how payments will be handled while the transfer is being completed;
• whether any amount will be reviewed after the placement moves across; and
• what happens if the child’s needs or placement circumstances change.

Request the relevant payment policy, schedule or written terms and compare it with your existing agreement. If wording is unclear, ask the supervising social worker or the agency’s finance team to explain it in practical terms. Keep copies of the documents and record any points agreed during meetings.

Could a change affect the child’s care?

A payment discussion should not be treated as a reason to change a child’s placement or reduce the support they need. If the proposed arrangement appears insufficient for the child’s assessed needs, raise this with the agency and the professionals involved in the transfer. The financial plan should take account of the actual demands of caring for the child, including agreed travel, activities, equipment and other necessary costs.

Where a transfer involves a child already living with you, ask who will authorise and reimburse costs during the transition. Do not assume that an expense previously accepted by one agency will automatically be paid in the same way by the next agency.

What if the new allowance is lower?

A lower proposed payment does not necessarily mean that the transfer cannot go ahead, but it should be addressed before you commit to the new arrangement. Ask the agency to explain the difference and whether the figures being compared cover the same items. You can also ask whether a child-specific payment, agreed expense arrangement or review is appropriate based on the placement’s needs.

If you cannot establish what you will receive, when it will be paid or which costs you may claim, seek clarification before signing transfer documents. Financial terms are only one part of the decision, but they are important for planning a sustainable household budget and meeting the child’s needs consistently.

Practical checklist

• Obtain the proposed payment information in writing.
• Separate maintenance, fee, additional payments and reimbursed expenses.
• Check whether the terms apply to the current placement and to future placements.
• Confirm the payment date and arrangements during the transfer period.
• Ask how reviews, changes in need and exceptional costs will be handled.
• Compare like-for-like figures with your current agreement.
• Raise unresolved concerns before agreeing to the transfer.

A clear written payment plan helps you understand the practical effect of changing agencies and gives everyone a shared reference point once the new fostering arrangement is in place.