What costs are not covered by a fostering allowance?

Costs outside a fostering allowance are usually those that relate to the carer’s existing household, personal finances or spending that has not been agreed as part of the child’s care. The exact position depends on the fostering service, the child’s needs and the terms of the placement, so prospective foster carers should ask for a written explanation of what is included and what can be claimed separately.

Existing household commitments

A fostering allowance is not normally intended to pay for costs that the household already had before fostering. These may include:

• rent or mortgage payments;
• council tax and household insurance;
• utility bills, broadband and other general household services;
• personal loans, credit commitments and other debts;
• food and personal spending for adults in the household; and
• repairs, improvements or purchases that benefit the whole property rather than being required for the child’s care.

These commitments are considered as part of your wider household budget when you apply. You should not assume that fostering payments will replace your existing income or meet unrelated financial commitments.

Costs that are not agreed in advance

Some spending may be connected to a foster child but still fall outside the regular allowance if it has not been authorised. For example, a service may require prior agreement before paying for an unusually expensive activity, specialist equipment, a large item of furniture, additional travel or a particular service. Buying something first and asking for reimbursement afterwards may mean that the cost is not accepted.

Before committing to a significant expense, check:

• whether it is included in the standard allowance;
• whether the fostering service has a separate payment or reimbursement process;
• whether approval is needed before the purchase or booking;
• what evidence is required, such as receipts or mileage records; and
• whether there are limits, exclusions or local arrangements that apply.

Placement-specific and exceptional expenses

Children and young people can have different needs. A regular allowance may not automatically cover every cost arising from a child’s circumstances, particularly where there are health, education, disability, behavioural, communication or transport needs. Examples could include specialist clothing or equipment, additional journeys, activities recommended as part of the child’s care, or arrangements needed to support contact with family members.

This does not necessarily mean that the foster carer must pay for these items personally. The fostering service may assess the need and agree additional help, either through a separate payment, direct provision or another arrangement. The important point is that exceptional costs should be discussed with the supervising social worker or fostering team rather than treated as automatically covered by the standard allowance.

Damage, loss and replacement costs

Normal wear and tear on belongings or the home is a household cost, while damage or loss connected with a placement may be handled under the fostering service’s policies. Policies can differ, and reimbursement may depend on the circumstances, the item involved and whether the cost was reported promptly. Keep records of significant damage, replacement purchases and discussions with the service. Do not assume that an insurance policy or fostering allowance will cover the full amount.

Travel and activities

Routine travel arrangements may be treated differently from journeys for contact, appointments, education or placement-related meetings. Similarly, ordinary activities may be included within the allowance, while higher-cost activities or trips may need separate approval. Ask how mileage, public transport, parking, admission fees and overnight travel are dealt with before making arrangements. This is particularly important when a child has frequent appointments or contact commitments.

Costs between placements

Some household costs continue when a foster child is not living with you, such as rent, mortgage payments, insurance and utilities. Whether any fostering-related payment is available between placements depends on the fostering service and your agreement with it. Do not base your budget on an assumption that the regular allowance will continue unchanged when no child is placed with you.

How to plan accurately

During the assessment and training process, ask for the current allowance information, payment terms and expenses policy. A useful budget should separate:

• your normal household bills and financial commitments;
• regular costs of caring for a child;
• possible placement-specific expenses; and
• emergency or one-off spending that may need prior approval.

Keep receipts and written records for agreed expenses, and raise any uncertainty before spending. This gives you a clearer picture of what you may need to fund yourself and what support could be available through the fostering service. For advice based on your circumstances, discuss your household budget and likely placement needs with the fostering team before applying.