Does fostering change your council tax band?

Council tax banding is a valuation classification attached to a property, rather than to the people who live there or the purpose for which a room is used. Becoming an approved foster carer, taking a foster child into your home or receiving fostering payments does not, by itself, create a new council tax band.

In England and Wales, the Valuation Office Agency (VOA) is responsible for council tax bands. It assesses factors such as the property’s size, layout, type and location. Your local council uses the band to calculate the standard charge, but it does not normally decide which band the property belongs to.

Fostering should not affect the band simply because:

• an additional child or young person lives in the property;
• a bedroom is allocated to a foster child;
• you are approved to foster but have no placement at present;
• you receive fostering allowances or other fostering-related payments; or
• your household changes from one year to the next.

A band may need to be reviewed if the property itself changes. Examples can include an extension, conversion, structural alteration, subdivision into separate dwellings or the combination of properties. A reassessment may also follow changes to the property recorded by the valuation authority. In England, an increase resulting from certain physical alterations may not take effect until the property is sold or transferred, although the precise position depends on the circumstances.

If you make adaptations to support fostering, the adaptation does not automatically mean the property should move into a higher band. The relevant issue is the nature and effect of the physical work, not the fact that it is connected with fostering. Planning permission, building regulations and council tax valuation are separate matters, so approval for one does not automatically determine the others.

It is also important to distinguish your council tax band from the amount you actually pay. Your bill can change because of a discount, exemption or Council Tax Reduction without any change to the band. Fostering may be relevant when the council considers your household circumstances, but those decisions are separate from property valuation and can depend on the particular reduction or discount rules that apply.

For example, a council may need to consider whether another adult in the household affects a single-person discount, whether an individual is disregarded for council tax purposes, or whether the household qualifies for Council Tax Reduction. These issues concern the calculation of the bill, not the band assigned to the home. Fostering payments and household income may also be treated differently depending on the scheme being considered, so check the specific rules with the council that issues your bill.

You can check your current band on your council tax bill and compare it with the valuation authority’s property records. If you believe the band is wrong because the property has been incorrectly assessed or its physical circumstances have changed, the appropriate valuation authority is the organisation to contact. The council can explain the charge, apply an approved discount or reduction, and issue corrected bills, but it generally cannot change the underlying band itself.

Scotland uses a different valuation system, administered by local assessors, while Northern Ireland uses domestic rates rather than council tax. Foster carers in those areas should therefore use the relevant local valuation or rating authority rather than relying on the England and Wales process.

Keep copies of any plans, completion documents, valuation correspondence and council tax bills if building work has taken place. They can help establish whether a change relates to the property’s valuation or only to a separate discount, exemption or support application.