Are private fostering payments agreed before approval?

Private fostering payments are usually discussed before the child moves in, but there is no standard approval process or national payment rate for private fostering. The arrangement is made between the child’s parent or someone with parental responsibility and the private foster carer. The people involved should agree what will be paid, who will pay it and what the payment is intended to cover before the placement starts.

Private fostering is different from becoming an approved foster carer through a fostering service. It generally applies when a child under 16, or under 18 if they are disabled, is cared for by someone who is not their parent or another person with parental responsibility for 28 days or more. The arrangement is made privately rather than by a local authority or fostering agency.

Because there is no standard private fostering allowance, the amount may depend on the child’s circumstances and the responsibilities being taken on. Discussions may include:

• the child’s everyday food, clothing and personal care costs;
• travel to school, family contact, appointments and activities;
• school-related expenses and equipment;
• the amount of supervision and care the child needs;
• any additional costs linked to health, disability, education or emotional support; and
• how exceptional or one-off expenses will be handled.

A payment agreement should be clear enough to prevent misunderstandings. It is sensible to record the agreed amount, payment dates, the person responsible for paying, the costs included and the process for dealing with expenses that were not anticipated. The agreement should also explain when it will be reviewed, particularly if the placement is expected to continue for a significant period.

The local authority does not normally set the payment or approve a private foster carer in the same way that a fostering service approves foster carers. However, a private fostering arrangement must be notified to the relevant local authority. The local authority will consider the child’s welfare and safeguarding needs, speak with the child and the adults involved, and assess whether the arrangements are suitable. This assessment may lead to recommendations about the child’s care, including practical matters that affect the cost of the arrangement.

Payment discussions should not be treated as a substitute for safeguarding checks or a proper care plan. Before the arrangement begins, the adults should also clarify who has parental responsibility, what decisions the private foster carer can make, how the child will maintain contact with their family and what should happen if the placement becomes unsuitable. The child’s views should be considered in an age-appropriate way.

If the child’s needs change, the original payment may no longer reflect the care required. For example, a change in education, health, contact arrangements or the expected length of the placement may create additional costs. The parent and private foster carer should review the agreement rather than allowing an informal arrangement to continue without discussion. Any significant change should also be shared with the local authority.

Before accepting a private fostering arrangement, ask for the proposed payment and responsibilities in writing. You should understand whether the payment is intended to cover all ordinary costs or whether particular expenses will be reimbursed separately. Keep records of agreed payments and significant costs, and raise concerns promptly if payments stop or the child’s needs cannot be met.

If you are comparing private fostering with becoming an approved foster carer, the financial arrangements are structured differently. Approved foster carers usually receive allowances and may receive other payments under the terms of their fostering service, whereas private fostering payments are negotiated for the individual arrangement. Our team can help you understand this distinction and the wider steps involved in exploring fostering.