How are enhanced foster care allowance payments calculated?

There is no single national formula for enhanced foster care allowance payments. Each fostering service sets its own payment structure, so the amount is normally worked out from the agreed rate for the placement and the information recorded in the child’s care plan, matching the payment to the responsibilities involved.

The calculation may take account of factors such as:

• the child’s age, development and day-to-day care needs;
• the level of supervision, reassurance or practical help required;
• health, behavioural, emotional or communication needs;
• the number of children placed together and whether caring for siblings creates additional duties;
• the experience, skills or specific training expected of the foster carer;
• appointments, meetings, contact arrangements, transport and other placement-related responsibilities; and
• whether the placement requires a higher level of availability or a more structured care routine.

The service will usually establish the applicable rate before the placement is confirmed. It should also explain whether the quoted figure is the complete payment or whether it is made up of separate elements, such as the child’s maintenance allowance, a professional fee and any enhanced component. The word “enhanced” is not used identically by every fostering service, so it is important to check what each part represents.

Payments are commonly linked to the period for which the child is actually placed. The service should explain how it deals with the placement start date, ending date, changes in arrangements, respite and any periods when the child is temporarily away. A partial payment may be calculated for part of a payment period, but the exact approach depends on the provider’s written policy.

The agreed amount should be recorded in the placement documentation or payment agreement. This gives the foster carer a clear reference point and should identify the rate, payment frequency, what the allowance is intended to cover and whether separate approval is needed for additional costs. Ordinary household spending and costs connected with the child’s care should not be assumed to be included without checking the agreement.

An enhanced rate is not normally calculated simply by adding a standard amount for every child. The assessment considers the particular placement and the duties expected of the foster carer. Two placements may therefore attract different payments, even where the children are of a similar age, because their care plans, risks, routines or support requirements differ.

Before accepting a placement, ask the fostering service to confirm:

• the total amount payable and how it has been calculated;
• whether the enhanced element is additional to the standard fostering allowance or included within one combined figure;
• which expenses are included and which may be considered separately;
• how the amount is affected by changes to the placement; and
• when and how the payment will be made.

Keep the written payment information with the placement records. If the child’s circumstances or the agreed duties change, ask the supervising social worker or fostering service to explain whether the payment calculation should also be reconsidered. The payment should reflect the current arrangement rather than relying on an informal understanding.