What financial support is available to foster carers?

Financial support for foster carers is usually made up of a regular fostering allowance, with other payments or help considered where a child’s needs, the type of placement or the responsibilities involved require it. The allowance is intended to contribute towards the costs of caring for a child, rather than being a conventional salary.

The precise arrangements depend on the fostering service and the individual placement. Before you apply, you should ask for a clear explanation of the current payment structure, including what is included in the allowance, which costs can be claimed separately and when payments are made.

What does the fostering allowance cover?

The allowance is generally designed to help meet the everyday costs of looking after a child or young person. This can include food, clothing, personal items, household costs, travel connected with the placement and activities. It may also need to contribute towards birthdays, celebrations, school-related expenses and the cost of maintaining a suitable bedroom and home.

Not every expense is treated in the same way. Some fostering services expect ordinary costs to be covered by the allowance, while others provide separate payments or agree additional reimbursement for particular items. Keep receipts and records where requested, and check the policy before committing to a significant expense.

Can additional payments be available?

Additional financial support may be considered for circumstances such as:

• placements involving more complex needs or a higher level of supervision;
• specialist training or skills needed to care for a particular child;
• travel to contact meetings, appointments, school or other activities;
• equipment, adaptations or items required to meet a child’s needs;
• holidays, activities or events that involve extra agreed costs; and
• planned short breaks or other arrangements with specific financial terms.

These payments are not automatic and may differ according to the child’s care plan, the placement agreement and the fostering service’s policies. Ask which costs need prior approval so that you understand what can be claimed before spending money.

Does the type of fostering affect financial support?

It can. The financial arrangements for short-term, long-term, emergency, respite or specialist placements may not be identical. A placement involving siblings, frequent appointments, supervised contact or additional support may also have different agreed arrangements. The assessment and matching process should give you an opportunity to discuss the practical and financial implications of the placements you are considering.

Payments may also be affected by changes during a placement. For example, a child’s needs may change, a placement may move from short-term to longer-term care, or agreed responsibilities may increase. Any change should be discussed with your supervising social worker or fostering service so that the payment arrangements remain clear.

What about tax?

Foster carers may be able to use foster care-specific tax arrangements, including qualifying care relief, but the tax position depends on the circumstances of the household and the fostering income received. Tax rules can change, and not every payment is necessarily treated in the same way. Obtain current guidance from HM Revenue and Customs, an accountant or another suitably qualified adviser rather than relying on a general online explanation.

It is sensible to keep accurate records of fostering payments, agreed expenses and relevant dates. Good records can help you understand your income, complete any required tax return and answer questions about individual payments.

Could fostering affect benefits or other support?

Fostering payments may be treated differently from ordinary employment income for some benefits and means-tested support, but the effect depends on the benefit, your household circumstances and the rules in force at the time. Becoming a foster carer can also affect decisions about work, childcare and household budgeting. Check with the relevant benefits service before making assumptions, particularly if you already receive support.

Are there costs before a placement begins?

There may be practical costs associated with preparing to foster, such as making room for a child, arranging equipment or travelling to meetings and training. The fostering service should explain which preparation costs it covers, which items it provides and which expenses you would normally meet yourself. Do not assume that every purchase will be reimbursed; ask for confirmation in advance where possible.

Financial support is one part of the decision to foster. You should also consider the time involved, the space available in your home, the impact on work and family life, and the support and training provided. During the application process, ask for the current allowance information in writing and discuss examples that reflect the types of placements you may be considered for. This will help you build a realistic household budget before making a decision.