What financial support is available to foster carers?

Financial support for foster carers is designed to contribute towards the everyday costs of caring for a child and, where applicable, recognise the additional skills, time or responsibility involved in a placement. It commonly consists of a regular fostering allowance, with other payments or reimbursements depending on the fostering service, the child’s needs and the type of placement.

The allowance is intended to help with costs such as:

• food, toiletries and other everyday essentials;
• clothing, shoes and personal items;
• activities, hobbies and social opportunities;
• travel connected with the child’s care;
• household costs associated with having an additional child or young person at home; and
• pocket money, where this is appropriate for the child’s age and agreed care plan.

The amount is not necessarily the same for every placement. It may be affected by the child’s age, the type of fostering arrangement, the level of care required and whether the placement involves specific additional responsibilities. Your fostering team should explain how the allowance is calculated, when it is paid and which costs it is expected to cover.

Some fostering services also provide a professional fee or skills payment. This is separate from money intended to meet the child’s daily expenses and may depend on the carer’s experience, training, approval level or the complexity of the placement. It is not automatically available in every fostering arrangement, so ask for a clear explanation of the payment structure before applying or accepting a placement.

Additional financial support may be available for particular circumstances. Examples can include:

• payments linked to children with complex or additional needs;
• funding for specialist equipment, adaptations or essential items;
• contributions towards agreed travel or contact arrangements;
• one-off payments for items needed when a child arrives;
• support for activities, education or other costs identified in the child’s care plan; and
• payments associated with respite, emergency or other specialist placements.

These payments normally require discussion and approval rather than being assumed as part of the standard allowance. Keep receipts where requested, obtain agreement before committing to substantial expenditure and check whether a cost should be paid directly by the fostering service instead.

Financial support can also involve practical help rather than a payment into your bank account. A fostering service may provide essential equipment, contribute towards training-related costs or explain how to access suitable resources. The arrangements should be recorded in the relevant agreements and care plans, particularly where a child has medical, developmental or behavioural needs that create extra costs.

Fostering payments are not usually treated in the same way as a conventional salary. However, the tax position can depend on the type of fostering, the payments received and the carer’s wider circumstances. Special tax rules and allowances may apply to foster carers, but these rules can change. Ask the fostering team what information they provide and obtain current advice from HMRC or a suitably qualified tax adviser before making financial decisions. You should also check how fostering income could interact with any benefits or other household income you receive.

Before approval, prepare a realistic household budget. Include regular costs such as food, transport, clothing and activities, as well as less predictable expenses including replacement furniture, damage, additional heating or travel for meetings and family contact. An allowance is intended to support the child’s needs; it should not be viewed as guaranteed disposable income or as a substitute for planning for variable household costs.

Ask your fostering team these questions:

• What is the current allowance for the types of placements I may be approved for?
• Is there a separate professional fee or skills payment?
• Which expenses are included, and which can be claimed separately?
• Are there different arrangements for emergency, respite, sibling or specialist placements?
• How are costs for equipment, travel, activities and contact agreed?
• What happens to payments when a placement ends or a child moves to a different type of care?
• Where can I find the latest payment policy and tax information?

The most reliable figures and conditions will come from the local fostering team because payment schemes vary and are reviewed. At Become a Foster Family, our teams can explain how the financial arrangements work alongside the training, assessment and ongoing support involved in fostering, so you can consider the responsibilities with a clear understanding of the likely costs and payments.