Are foster carer allowances paid between placements?

Payment during a gap between placements depends on the fostering provider’s agreed policy and the terms attached to your approval. Some providers may offer a retainer, maintenance payment or other temporary financial arrangement, while others only make payments linked to an active placement. There is no single rule that applies to every fostering agency or local authority.

Why payments can change between placements

Foster carer payments are usually structured around the needs and circumstances of a child in placement. The amount may reflect maintenance costs, the carer’s role and the child’s assessed needs. When there is no child living in the household, those placement-related elements may not apply in the same way.

However, a gap does not necessarily mean that your fostering approval has ended. You may remain an approved foster carer, continue to meet the requirements of your agency and keep a bedroom available. Whether those responsibilities attract any payment is determined by the written terms agreed with your provider.

Arrangements you may come across

• No payment between placements: the provider pays only when a child is placed with you.
• A retainer or holding payment: an agreed amount may be paid for a defined period while you remain approved and available for placements that match your skills and approval.
• Limited or conditional support: payment may depend on factors such as the type of placement, your approval category, a planned move between placements or a specific agreement with the provider.
• Reimbursement of agreed costs: some expenses connected with training, travel or maintaining your role may be handled separately from the main fostering allowance. These should not be assumed to form part of a payment between placements.

These arrangements are not interchangeable, so ask the provider to explain precisely what each payment is intended to cover, how long it applies and what conditions attach to it.

Check the written agreement

The most reliable information will be in the fostering fee policy, allowance guide, foster carer agreement and any placement agreement issued by your provider. Look for wording about:

• payments when no child is living with you;
• retainers, availability payments or bridging arrangements;
• when a payment starts and ends;
• whether approval must remain active and the household must remain available;
• what happens if you decline a proposed placement;
• how planned breaks, respite or a move to another placement affect payment; and
• which costs must be claimed separately and which are included in the allowance.

Ask for clarification before accepting approval if the documents use terms such as “available”, “on hold” or “between placements” without defining them. Verbal explanations can be helpful, but the written policy should be the reference point if your understanding later differs from the provider’s interpretation.

Planning for a gap

When working out whether fostering is financially manageable, budget on the basis that there may be periods without a placement unless your provider has confirmed a payment arrangement in writing. Consider regular household commitments, the costs of keeping a room suitably prepared and any expenses that continue even when no child is placed with you.

It is also worth asking how the provider handles training, reviews, supervision and support during a gap. Continuing these activities may be part of remaining approved, but they do not automatically mean that an allowance is payable.

A clear conversation with the agency before approval or before a placement ends can prevent uncertainty. Request the current payment policy, ask which circumstances apply to you and check whether any proposed arrangement is recorded in your agreement.