What does an enhanced foster care allowance cover?
An enhanced foster care allowance covers the everyday costs of caring for a child, together with agreed additional expenses linked to their individual needs. This may include extra travel, activities, clothing, equipment or care arrangements, depending on the child’s circumstances and the terms of the placement.
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An enhanced foster care allowance is designed to help meet the costs and responsibilities of a more complex or higher-support placement. It usually combines the child’s agreed maintenance costs with an enhanced element that reflects the additional care, supervision and practical arrangements required. The exact scope depends on the fostering provider, the child’s assessed needs and the terms agreed before or during the placement.
The allowance may contribute towards the regular costs of looking after a child, including:
- food and household use associated with the placement;
- personal items and age-appropriate day-to-day needs;
- transport connected with school, contact, appointments and other agreed activities;
- leisure, educational and social activities;
- ordinary household costs arising from having an additional child living in the home; and
- the practical arrangements needed to maintain a safe and suitable placement.
The enhanced part is particularly relevant where a child needs more supervision, structured support or flexibility than would normally be expected in a standard placement. It may recognise the time involved in attending meetings, keeping detailed records, working with professionals, supporting contact arrangements or following strategies set out in the child’s care plan. It is not necessarily paid as a separate pot for each task; in some schemes, these responsibilities are reflected in the overall enhanced rate.
Some costs may need to be agreed separately rather than being assumed to form part of the regular allowance. This can include an unusual or one-off expense, an arrangement connected with the child’s specific needs, or a cost that falls outside the agreed placement plan. The provider should explain whether the item is included, requires prior approval, or must be claimed through a separate process.
An enhanced allowance is not a universal tariff. Two placements may attract different amounts because the children’s needs, level of supervision, travel requirements and expected responsibilities are different. The placement agreement, payment schedule and the child’s care plan should set out what the allowance is intended to cover and which expenses require authorisation.
It is sensible to ask for clarification before accepting a placement, particularly about:
- which regular costs are included in the maintenance element;
- what makes the placement eligible for the enhanced rate;
- how agreed additional expenses are requested and evidenced;
- whether travel, contact-related costs or activities have separate arrangements;
- what happens if the child’s needs change; and
- which records, receipts or reviews are required.
Keep the payment information and any approved expense arrangements with the placement records. If a cost is unclear, check with the supervising social worker or fostering provider before committing to it, as an enhanced allowance does not automatically mean every expense will be reimbursed.
An enhanced foster care allowance is intended for costs connected with the child’s placement, rather than unrelated personal or household spending. Unless the provider has agreed otherwise, it should not be assumed to cover costs that would have existed without the placement, purchases for other members of the household, or expenses that fall outside the child’s care plan.
Where the payment includes a separate fostering fee or professional element, this should be explained independently from the child-related maintenance allowance. Ask the provider how these parts are described in the payment schedule, and whether any proposed expense needs approval before it is incurred. This helps distinguish placement costs from general household spending and prevents misunderstandings about what the enhanced payment is intended to cover.
Find out more about enhanced foster care allowance
Speak to our fostering team to discuss how enhanced foster care allowance works for different placements and what you would need to clarify before applying.