How much do private foster carers get paid?

Private foster carers are not paid a nationally fixed allowance or salary. The amount, if any, is normally agreed between the child’s parents or anyone with parental responsibility and the person providing the care. It may be a regular contribution towards the child’s living costs, reimbursement of particular expenses, or a combination of both.

This is different from fostering through a local authority or fostering agency, where the provider usually sets allowances and payment arrangements. In a private fostering arrangement, there is no single UK tariff that applies to every child or carer.

What can affect the amount paid?

The agreed contribution should reflect the practical cost of caring for the child and the responsibilities involved. Discussions may take account of:

• the child’s age and day-to-day needs;
• food, clothing, toiletries and other household costs;
• school-related expenses, travel and activities;
• health, communication or support needs;
• the size and suitability of the accommodation required;
• how long the arrangement is expected to last; and
• the level of supervision and care the private foster carer is providing.

The parents’ financial circumstances may also affect what they can reasonably contribute. A private foster carer should avoid assuming that every cost will be covered automatically. The proposed payment and any limits on expenses should be discussed clearly before the child moves in.

How should payment arrangements be agreed?

It is sensible to record the agreement in writing, even where the arrangement is between people who know each other well. The written terms can set out the regular amount, when it will be paid, which costs are included, how exceptional expenses will be handled and what happens if the child’s needs change.

The agreement should also identify who will pay for larger or less frequent costs, such as clothing, school items, medical appointments, transport or activities. Keeping receipts and a simple record of payments can prevent misunderstandings and make it easier to review the arrangement.

Payment arrangements may need to be reviewed if the child remains in placement longer than expected, requires additional support or moves to a different school or accommodation. Any change should be discussed with the parents or person with parental responsibility and recorded rather than left to an informal assumption.

What if the parents cannot pay?

If the child’s parents cannot meet the agreed costs, the carer should raise the issue promptly with the relevant local authority. Private fostering arrangements must be notified to the local authority, which has responsibilities relating to the child’s welfare and the suitability of the arrangements. The local authority can consider whether the child or household needs further support, although this does not create a standard private fostering wage.

A carer should not treat the payment as a guaranteed income. Before agreeing to care for a child, work out the likely household costs, confirm what the parents can contribute and consider whether the arrangement is financially sustainable. If the proposed contribution does not cover essential costs, that should be addressed before the placement begins.

Does the payment count as taxable income?

The tax treatment can depend on the nature of the arrangement, the amounts received and the carer’s wider circumstances. A contribution towards a child’s costs is not automatically treated in the same way as a fostering allowance, so private foster carers should keep clear records and obtain advice from HM Revenue and Customs or a suitably qualified tax adviser where necessary.

In short, private fostering payments are individually agreed rather than set by a national allowance. The safest approach is to establish a realistic written arrangement in advance, review it when circumstances change and involve the local authority where there are concerns about the child’s needs, the care arrangement or the affordability of the placement.