How are private fostering fees calculated?

Private fostering fees are calculated through an individual agreement between the child’s parent or person with parental responsibility and the private foster carer. There is no single national fee or automatic allowance for every private fostering arrangement. The amount should reflect the practical cost of caring for the child, the responsibilities being undertaken and the terms agreed by everyone involved.

The main factors considered are:

• Everyday living costs: food, clothing, toiletries, household bills and other routine costs linked to the child living in the home.
• Accommodation: the space, furnishings and facilities the child needs, including any additional household costs arising from the placement.
• Education and activities: school-related items, transport, clubs, hobbies and activities that form part of the child’s normal routine.
• Transport and appointments: travel to school, health appointments, contact arrangements and other regular commitments.
• Additional care requirements: medication, specialist equipment, dietary needs, personal care or extra supervision where these are relevant to the child.
• Time and responsibility: the extent to which the carer is providing day-to-day supervision, attending meetings, communicating with professionals and supporting contact with the child’s family.

The calculation should begin with a realistic estimate of the child’s regular weekly or monthly costs. The adults can then agree which costs are included in the main payment and which will be paid separately. For example, a regular amount might cover food and household costs, while school uniform, travel or an unexpected medical expense could be dealt with separately. This avoids confusion about whether the agreed fee is intended to cover all costs or only the carer’s ordinary day-to-day expenditure.

Fees may be paid weekly, fortnightly or monthly, depending on what is practical for the arrangement. The agreement should specify the payment date, the person responsible for making the payment, the method of payment and what happens if a payment is late or a cost changes. Keeping a written record of payments and significant expenses can help both the parent and carer understand what has been provided.

It is also important to separate the carer’s fee from money intended directly for the child. A child may have their own spending money, clothing budget, travel costs or payments connected with education and activities. These should be identified clearly rather than assumed to form part of the carer’s personal payment.

The agreed amount should be reviewed if the circumstances change. Relevant changes could include the child moving to a different school, developing additional needs, requiring more supervision, spending more or less time in the placement, or incurring new travel and activity costs. A review does not automatically mean the fee will increase; it means the arrangement can be checked against the child’s current needs and the actual costs being met.

Private fostering is different from being approved as a foster carer through a fostering service. A private foster carer does not automatically receive the standard fostering allowance or payment used by a fostering agency or local authority. The financial arrangements instead depend on the private agreement, although the local authority still has safeguarding responsibilities once it is notified of the arrangement.

Before the child moves in, the parent and proposed private foster carer should discuss:

• the regular amount and how often it will be paid;
• which ordinary costs the amount covers;
• which expenses need prior agreement or will be paid separately;
• who will pay for school items, travel, activities, appointments and specialist requirements;
• how changes in the child’s needs or circumstances will be reviewed; and
• how the arrangement will end and any outstanding payments or expenses will be settled.

Any private fostering arrangement must also be notified to the relevant local authority. Financial discussions should not delay that notification or replace the assessment of the child’s welfare and living arrangements. If the adults cannot agree a fair or workable payment, they should seek advice from the local authority or an appropriate professional before the placement begins.