How are allowances handled during foster care respite?

The financial arrangements for respite should be set out before the child moves, including who receives payment, what period it covers and which expenses are included. Respite is usually treated as a temporary care arrangement, so the payment process may differ from the arrangements used for the child’s main foster placement.

What the respite allowance is intended to cover

An allowance is generally intended to help meet the everyday costs of caring for the child. Depending on the arrangement, this may include food, heating, transport connected with the placement, activities, personal items and other reasonable costs arising from the child’s stay. It is important to understand whether the amount offered is a standard fostering allowance, a separately agreed respite payment, or a combination of payment and reimbursement for specific expenses.

The amount may be influenced by factors such as the length of the stay, the child’s individual needs, agreed travel arrangements and the fostering provider’s payment policy. A short planned stay may be calculated differently from a longer period of respite. There is no single arrangement that applies to every fostering service.

Who receives the payment?

In most arrangements, the respite carer’s payment is processed through the fostering provider or local authority responsible for arranging the care. The main foster carer may need to confirm the dates and authorise the arrangement, while the respite carer may need to complete the relevant payment or expenses forms.

Whether the child’s usual foster carer continues to receive any element of their normal fostering payment during respite depends on the provider’s rules and the terms of the placement. The respite carer should not assume that payment will be made automatically or that the usual foster carer’s full payment will continue unchanged. Both carers should receive a clear explanation of the arrangement before care begins.

What should be agreed in writing?

A written agreement helps prevent misunderstandings. It should normally identify:

• the start and end dates, including the expected collection and return times;
• the person or organisation responsible for processing the payment;
• the rate or method used to calculate the respite allowance;
• how partial days, extensions or changes to the planned dates will be handled;
• which ordinary costs are included;
• how additional expenses, such as agreed travel or activities, should be approved and claimed;
• what records or receipts are required; and
• what happens if the respite arrangement is cancelled or ends earlier than planned.

The placement plan should also make clear who is responsible for day-to-day decisions and communication. Financial arrangements should support the care plan rather than replace it: the child’s needs, routines and safeguarding arrangements remain the priority.

Additional expenses and changing circumstances

Some costs cannot be predicted in advance. For example, the child may need particular equipment, travel to an activity, or an agreed appointment during the respite period. The respite carer should ask for approval before committing to unusual or substantial expenditure, unless there is an immediate need. Keeping a simple record of dates, journeys and receipts can make any later claim easier to check.

If the stay is extended, shortened or changed at short notice, the payment should be reviewed rather than assumed. The carers and the supervising team should confirm the revised dates and any effect on the allowance. This is particularly important where care crosses a payment period or where responsibilities transfer between carers.

Tax and record keeping

Fostering payments can have specific tax treatment, but the position depends on the individual’s circumstances and the rules applying at the time. A respite carer should ask the fostering provider for current guidance and obtain independent advice from HM Revenue and Customs or a qualified adviser if they are unsure how to report payments. Keeping payment statements, agreements and expense records is sensible even where the carer believes no tax is due.

Questions to ask before accepting respite

• What exact payment will apply to this period of care?
• Is the amount calculated by day, night, placement period or another method?
• Who will pay it and what paperwork must be completed?
• Are meals, travel, activities and other costs included or claimed separately?
• How will payment change if the child stays longer or returns early?
• Will the usual foster carer’s payment be affected, and who will explain this?
• Who should be contacted if an unexpected expense arises?

These points should be settled with the fostering provider before the arrangement starts. If the proposed payment or expenses process is unclear, ask for clarification in writing rather than relying on an informal conversation. This gives both foster families a shared understanding and allows the respite carer to plan appropriately for the child’s stay.