What should private foster carers budget for?

Private foster carers should budget for the child’s regular living costs, occasional purchases, changes in household spending and a contingency for needs that cannot be predicted at the start of the arrangement. Because private fostering is arranged between the child’s parent and the carer, there is no single national payment rate. The financial arrangements should be discussed clearly and recorded before the placement begins.

Start with the agreed contribution. Establish whether the child’s parent will make a regular payment, meet particular bills directly, or use a combination of both. Clarify the payment date, method, amount, review arrangements and what happens if the child’s needs change. A payment intended to cover general care is different from reimbursement for a specific purchase, so avoid treating these as interchangeable.

The written agreement should also identify who is responsible for larger or unusual costs. These might include replacing damaged belongings, paying for specialist equipment, covering an activity with a significant charge or funding travel connected with family contact. Agreeing this in advance reduces the risk that the carer has to meet an unexpected cost personally or that the child’s needs are delayed while adults decide who should pay.

Separate predictable and occasional spending. A useful budget has at least three parts:

• Regular costs: the amounts likely to arise every week or month and which can be included in the normal household budget.
• Occasional costs: less frequent purchases, replacements, seasonal needs and events that may not appear in a monthly estimate.
• Contingency money: an amount set aside for changes in circumstances, urgent purchases or costs that were not known when the arrangement was agreed.

This approach is more reliable than relying only on an average monthly figure. Keep a simple record of spending during the first part of the placement, then compare actual costs with the original plan. If the agreed contribution no longer reflects the child’s needs, discuss a revision with the parent and involve the relevant professionals where appropriate.

Allow for the effect on the wider household. A child joining the household may alter existing routines and create additional use of shared resources. Consider how this could affect household bills, storage, communication, supervision arrangements and family plans. These costs may be difficult to allocate precisely to one child, but they should still be considered when deciding whether the proposed contribution is realistic.

Keep records and receipts. A basic record can show the date, item, amount, whether it was a routine cost or an exceptional expense, and who agreed to pay it. This is helpful when reviewing the arrangement with the child’s parent and when discussing concerns with the local authority. It also makes it easier to identify a recurring cost that was initially treated as a one-off.

Do not assume that the child’s parent will automatically cover every expense, or that a private fostering arrangement carries the same financial terms as a local-authority placement. The basis of the arrangement depends on what the adults agree, the child’s circumstances and any professional assessment. Ask for clarification before committing to substantial expenditure.

It is also sensible to check how any payments or reimbursements could affect your own tax position, benefits or household financial assessment. The treatment can depend on the nature of the payment and your circumstances, so obtain current advice rather than relying on a general assumption.

If a parent stops contributing, a cost becomes unaffordable or the child’s needs change significantly, raise the issue promptly rather than allowing unpaid costs to accumulate. Private fostering arrangements must be notified to the local authority, which has responsibilities for safeguarding and assessing the arrangement. The local authority can explain what support or professional involvement is appropriate, although it does not create a standard private fostering payment.

A realistic budget should therefore answer four questions before approval or the child’s arrival: what will be paid regularly, which costs will be handled separately, who will authorise unusual spending, and how will the arrangement be reviewed if circumstances change?