Are foster carers paid between placements?

Payment during a gap between placements is determined by the fostering provider’s payment policy and your foster carer agreement. Some providers may offer a retainer or other payment when you remain approved and available, while others only make payments linked to an active placement. There is no single arrangement that applies to every foster carer.

It is important to distinguish between the different parts of foster carer payments:

• Fostering allowance: this is intended to contribute towards the day-to-day costs of caring for a child, such as food, clothing, activities and household expenses.
• Fee or skills payment: some fostering providers pay a separate amount in recognition of the carer’s role, experience or level of approval. Whether this continues between placements depends on the provider’s terms.
• Retainer payment: a provider may offer a payment for remaining available to foster, but this can be subject to conditions such as maintaining approval, completing required training and accepting suitable referrals.

A gap between placements does not necessarily mean that your approval has ended. You may remain an approved foster carer while a suitable placement is being identified. During this period, you could still be expected to keep required records up to date, attend supervision or training, take part in reviews and maintain the standards set out in your agreement. These responsibilities do not, by themselves, mean that a payment is due.

The reason a placement has ended can also affect what happens next. A planned ending, an unplanned move, a change in the child’s care plan or a decision that a placement cannot continue may each be handled differently. Your provider should explain whether any payment continues, when it stops and whether any final amounts remain due.

Before applying, ask the fostering service to explain its policy in writing. Useful questions include:

• Is there a retainer or fee between placements?
• What conditions must be met to receive it?
• Does it depend on being available for a new placement?
• What happens if you turn down a referral because it is not suitable for your household or approval?
• When does payment stop after a child moves on?
• Are there any payments for approved activities, training or exceptional expenses during a gap?
• How are payments affected if your approval is being reviewed or temporarily suspended?

When comparing fostering arrangements, look beyond the headline weekly amount. Check whether the figures describe an allowance, a fee, a retainer or a combination of these, and whether the information applies only while a child is placed. Also ask how payments are reviewed, what expenses can be claimed separately and how the arrangement is recorded in your agreement.

Household budgeting is particularly important because the length of a gap cannot usually be predicted. It is sensible to understand which income is guaranteed under the agreement, which payments depend on a placement and which costs you may still have while waiting for another child to be placed. A fostering service should give you clear information so that you can make an informed decision before proceeding with an application.