Can foster carers qualify for Council Tax Reduction?

Foster carers can qualify for Council Tax Reduction (CTR), but fostering does not create an automatic entitlement. CTR is a means-tested scheme for households on a low income or receiving certain benefits. The council responsible for your council tax assesses your circumstances under its own local scheme, so the outcome can differ between households and councils.

The assessment may consider:

• your household income, including earnings, benefits, pensions and other regular income;
• the income and circumstances of other adults in the property;
• your savings and capital, where the scheme takes these into account;
• the number of people in your household and whether anyone is a child, a student, disabled or otherwise given special consideration;
• your council tax liability and the property in which you live; and
• the rules and income thresholds set by your local authority.

How fostering payments are treated

Fostering allowances and other payments connected with caring for a child are not necessarily treated in the same way as ordinary employment income. The treatment can depend on the type of payment, the applicable council scheme and the information requested during the assessment. Do not assume that fostering payments will either automatically disqualify you or automatically be ignored. Give the council complete details and ask how it will treat each payment when assessing your claim.

A foster child’s presence may also affect the household information used by the council, but this does not itself guarantee CTR. The council may need to establish who normally lives at the address, who is liable for council tax and whether any household member is disregarded under council tax rules. These issues are separate from the means test and should be checked as part of the same enquiry.

Applying for support

Apply through the council that issues your council tax bill. You will normally need to complete an online or paper application and provide information such as:

• your council tax account or bill details;
• identity and National Insurance information, where requested;
• proof of income and benefits;
• bank or savings information, if required by the local scheme;
• details of other adults living in the property; and
• evidence of your fostering arrangements or payments, if the council asks for it.

Apply as soon as you think you may qualify. Some councils can consider a claim from an earlier date, but backdating is governed by local rules and may require a separate request with a reason for the delay. A claim is not complete until the council has received the information it needs, so keep copies of your application and supporting documents.

What happens after applying

The council should issue a written decision explaining whether you qualify, the period covered and how your council tax bill has been calculated. If CTR is awarded, it is usually shown as a reduction on the council tax account rather than as a separate payment. You remain responsible for paying any balance shown on the bill by the due dates.

Check the decision carefully, particularly how the council has treated fostering allowances, other household income, savings and the people included in the assessment. If information is missing or incorrect, contact the council and provide clarification. If you disagree with the decision, you can ask the council to reconsider it and, where applicable, use the formal appeal route set out in the decision notice. Keep records of correspondence and submit any appeal within the stated time limit.

Your award can change if your income, benefits, savings, household or fostering circumstances change. Tell the council promptly about relevant changes, including a new placement, a placement ending, a change in fostering payments or someone moving into or out of the property. This helps prevent an underpayment or overpayment that the council may later recover.

Fostering applicants and approved foster carers can also ask their supervising social worker or fostering service for help understanding which documents may explain their fostering payments. However, only the council can decide entitlement to Council Tax Reduction, so the final application and any challenge should be directed to the council handling your bill.