Are additional expenses covered by local authority foster rates?

Local authority foster rates do not automatically cover every cost connected with a placement. The regular fostering allowance is normally used for the child’s routine maintenance, while extra funding may be available for agreed costs that are exceptional, placement-related or linked to the child’s assessed needs. Whether an expense is paid separately depends on the local authority’s policy, the placement plan and approval from the child’s social work team.

The distinction between ordinary maintenance and additional expenditure should be explained before a placement begins. Routine spending may include food, household costs, clothing, personal items and ordinary leisure activities. A local authority may treat other items as additional, particularly where they are necessary because of the child’s circumstances or cannot reasonably be met from the standard allowance.

• Equipment: specialist beds, safety items, mobility equipment or other adaptations may require separate authorisation.
• Education: school uniform, educational resources, residential trips or other school-related costs may be handled under a specific policy.
• Travel: journeys connected with contact arrangements, appointments, education or placement requirements may qualify for a separate mileage or travel payment, subject to local rules.
• Activities: clubs, hobbies, holidays and activities may have additional funding arrangements, especially where participation supports the child’s wellbeing or development.
• Health and therapeutic support: costs arising from an assessed health, emotional or behavioural need may be considered through the child’s care plan rather than through the standard allowance.

Approval is often the key requirement. Foster carers should not assume that a cost will be reimbursed simply because it relates to the child. The local authority may require the carer to discuss the expense with the supervising social worker or the child’s social worker before committing to it. Some items may need written approval, an agreed budget or evidence such as receipts.

The placement agreement and accompanying financial information should set out what the regular rate is intended to cover and how extra costs are requested. These documents may also explain whether payment is made directly, reimbursed after the expense, or arranged through another service. The process can differ between local authorities and may also vary according to the child’s care plan.

Before accepting a placement, ask for clear answers to the following points:

• Which costs must be paid from the ordinary fostering allowance?
• Which expenses can be considered separately?
• Who has authority to approve additional spending?
• Is approval needed before buying an item or booking an activity?
• What records, receipts or mileage details must be kept?
• How are regular, one-off and emergency expenses treated?
• What happens if the child’s needs change during the placement?

If an expense is essential and there is uncertainty about funding, raise it promptly with the fostering team rather than paying first and seeking reimbursement later. The child’s social worker and supervising social worker can explain the relevant procedure, confirm what has been agreed and ensure that the financial arrangements reflect the placement plan.

In practical terms, local authority foster rates provide the main financial contribution towards caring for a child, but they should not be treated as a complete schedule of every possible payment. The safest approach is to check the written policy and placement agreement, obtain approval for unusual costs and keep appropriate records of authorised expenditure.