Can local authority foster payments be reviewed?
Yes. Local authority foster payments can be reviewed and changed when the authority updates its fostering policy, budget or payment schedule, so rates are not necessarily fixed for the whole time you foster. Ask the relevant fostering service how often rates are reviewed, when any change takes effect and whether it applies to existing placements.
Partnering with an
Ofsted Outstanding Provider
A local authority foster payment review is a formal assessment of the allowances and other payments set out in the authority’s fostering policy. It may consider whether the payment structure remains appropriate for the children placed, the responsibilities expected of foster carers and the authority’s current financial arrangements. A review does not automatically mean that every payment will increase, decrease or change in the same way.
The review may look at several parts of the payment package, including:
- the basic maintenance allowance for different age groups;
- additional payments linked to a child’s assessed needs or a more demanding placement;
- skills, fees or professional fostering payments, where the authority operates such a scheme;
- payments for specific items or activities that are dealt with separately from the main allowance; and
- the rules governing payments during introductions, planned stays, respite arrangements or changes in a placement.
These elements may be reviewed together or under separate procedures. A change to one part of the policy does not necessarily alter every other payment. The written fostering payment policy or rate schedule should explain what each payment is for, who can receive it and whether particular conditions apply.
Local authorities may review their arrangements in response to changes in government guidance, the cost of caring for children, local budgets, placement patterns or the authority’s approach to recruiting and retaining foster carers. They may also revise payments after identifying that some placements involve responsibilities or expenses that are not adequately reflected in the existing structure. Any proposed change should be considered alongside the child’s care plan and the practical requirements of the placement.
Existing placements need particular care. Ask whether a revised payment applies only to new placements or also to children already living with you. The relevant documents should make clear the effective date, how the change is calculated, whether there is any transition arrangement and what happens if the child’s needs or placement type changes. Do not assume that a new published rate will be applied retrospectively. The placement agreement, fostering agreement and current payment policy may each contain relevant terms.
If you are told that an allowance or fee is changing, ask the fostering service to provide:
- the current and revised payment rates;
- the policy or decision supporting the change;
- the date from which the change will operate;
- whether the change affects all foster carers or only particular placement categories;
- how payments are handled during gaps, holidays, respite or an unplanned end to a placement; and
- who to contact if the calculation appears incorrect.
A review of the standard payment does not replace an assessment of a child’s individual needs. If a placement requires additional equipment, travel, activities, supervision or specialist support, raise those needs with the child’s social worker and fostering service. The authority may have a separate process for agreeing expenses or enhanced payments, and approval may need to be obtained before costs are incurred.
Where you believe a payment has been calculated incorrectly or a policy has not been followed, start by requesting a written explanation from the fostering service or your supervising social worker. Keep copies of the payment schedule, placement agreement, approval documents and relevant correspondence. If the issue is not resolved, ask for the authority’s formal complaints or review procedure. A fostering organisation, independent adviser or representative may also help you understand the policy and prepare questions, although the authority’s own procedure will determine how a formal challenge is handled.
Before applying to foster, prospective carers can ask the local authority how often its payment policy is considered, where the latest schedule can be obtained and how carers are notified of revisions. These questions help you distinguish the published maintenance allowance from discretionary expenses, specialist-placement payments and any fee linked to approval or skills. For advice about how a particular authority’s arrangements work, speak directly to its fostering service and request the current written terms.
There is no universal timetable or standard outcome for reviewing local authority foster payments. Each authority decides how its fostering payment arrangements are examined and whether any approved changes should apply across all placements or only to specific categories. A review may therefore result in revised rates, unchanged payments or alterations to particular parts of the payment structure rather than a single increase for every foster carer.
When considering a fostering offer, look beyond the headline allowance and check how the authority deals with the full payment arrangement. In particular, establish whether fees, enhanced placement payments and agreed expenses are reviewed separately, and whether the authority’s decision-making process includes any formal notice or consultation for foster carers. This gives you a clearer basis for understanding how a future review could affect your payments.
Get Guidance on Local Authority Foster Payment Reviews
If you need help understanding how a local authority’s foster payment review may affect your circumstances, speak to our fostering team for clear guidance on the questions to ask and documents to request.