What costs are not covered by a fostering allowance?

A fostering allowance does not automatically cover every cost connected with caring for a child. It is generally intended to contribute towards the child’s day-to-day living expenses, while other costs may be dealt with through additional payments, agreed budgets, reimbursements or support from the fostering service.

There is no single list of excluded expenses that applies to every fostering arrangement. What is included depends on the fostering service’s policy, the child’s age and needs, the type of placement and the arrangements agreed before the placement begins. Ask for the current allowance policy and obtain confirmation before committing to a significant expense.

Costs that may not be included automatically include:

• Major household changes: structural alterations, substantial repairs, room conversions and other improvements to the property are not usually treated as ordinary child-care costs. If a child needs adaptations for mobility, health or safety, there may be a separate assessment or funding route.
• High-value equipment: specialist beds, safety items, therapeutic equipment, computers or other costly items may need prior approval. Do not assume that buying an item yourself will lead to reimbursement.
• Exceptional transport: regular journeys may be considered within the fostering budget, but unusually long journeys, frequent contact travel, taxis or transport connected with specialist appointments may be funded differently. The arrangement should be clarified in advance.
• Education-related extras: schools may request payment for trips, uniforms, instruments, devices, tuition or other activities. Some costs may be met through the allowance, while others may require an education budget, agreement with the social worker or another contribution.
• Clubs, hobbies and celebrations: ordinary participation in activities may be affordable from the allowance, but expensive clubs, equipment, events, holidays and one-off celebrations may fall outside the standard payment or need an agreed limit.
• Damage and unusual wear: ordinary household running costs and routine replacement are not necessarily paid separately. Where damage or exceptional wear is connected with a child’s needs, there may be a separate process, but payment should not be assumed.
• Costs unrelated to the placement: a car bought for general use, existing household debts, mortgage or rent commitments, personal purchases and improvements that benefit the whole household are not normally covered as fostering expenses.

Costs before approval need separate clarification. People considering fostering may incur expenses while preparing their home, attending appointments or completing training. Some assessment-related costs may be arranged by the fostering service, but policies differ. Ask who pays for any required checks, travel, medical appointments, training-related purchases or documents before paying for them yourself.

Placement agreements are particularly important. Before a child moves in, discuss expected costs with the supervising social worker and the child’s social worker. This should include clothing, school requirements, contact arrangements, transport, activities, technology, medication-related needs and any particular equipment. Agree who will purchase each item, whether approval is required and what evidence must be kept. A written record prevents uncertainty if the expense later needs to be reviewed.

Do not treat the allowance as a fixed reimbursement of every receipt. It is normally a contribution towards caring for the child rather than a promise to repay every household expense. It may also be separate from any fostering fee or payment for the carer’s role. The financial arrangements should explain which part relates to the child’s costs and which, if any, relates to the carer’s time and responsibilities.

When an unexpected cost arises, avoid making a substantial purchase until you know whether it is eligible and who has authority to approve it. Keep receipts, invoices, mileage details and written decisions, and record the reason the expense was necessary. For regular expenses, a simple monthly budget can show whether the allowance is being used for food, clothing, personal items, transport and activities, while leaving a clear record of one-off costs.

If a child’s needs change, the existing arrangement may need to be reviewed. A new health, education, contact or behavioural need can create expenses that were not foreseeable at the start of the placement. Raise the change with the fostering service rather than absorbing the cost indefinitely or assuming that the standard allowance will increase automatically.

The most reliable approach is to ask for three things: the current allowance guidance, the approval process for exceptional expenses and the name of the person who authorises additional support. This gives you a clearer budget and helps ensure that necessary costs are considered before they become a financial difficulty.