Can foster carers receive extra payments for complex placements?

Additional payments for complex placements are not automatic, but a fostering provider may offer an enhanced payment when the care required is substantially greater than that covered by its standard allowance and fee structure. The decision should be based on the child’s assessed needs, the responsibilities involved and the provider’s agreed payment policy.

A complex placement may involve circumstances such as significant emotional or behavioural needs, a history of trauma, multiple appointments, communication difficulties, high levels of supervision or support with education and daily routines. Some placements may also require a foster carer to manage particular risks, work closely with several professionals or provide care that limits the household’s flexibility. Complexity is assessed individually; a diagnosis alone does not determine whether an enhanced payment will apply.

Payment arrangements usually have two separate elements:

• Foster care allowances help meet the ordinary costs of caring for a child, including food, clothing, personal items, travel and activities.
• Fostering fees or enhanced payments recognise the foster carer’s time, skills, responsibility and availability. A provider may increase this element for a placement requiring additional expertise or commitment.

An enhanced rate may therefore be paid in addition to the standard allowance, rather than replacing it. However, providers use different terminology and payment models. One may have defined levels for different types of placement, while another may agree an individual rate after considering the child’s needs and the foster carer’s experience. Some providers may also use a payment structure that already reflects more demanding placements, so there may not be a separate payment labelled as a “complex placement payment”.

Before accepting a proposed placement, ask for the financial arrangements to be explained in writing. Important points include:

• the standard allowance and fee that would normally apply;
• the reason the placement has been assessed as requiring an enhanced rate;
• the amount or payment level being offered and when it will begin;
• whether the arrangement applies for the whole placement or only while particular needs remain;
• how payments will be affected by respite, changes in the child’s circumstances or a move to another placement;
• which additional expenses are reimbursed separately; and
• when and how the payment will be reviewed.

The placement agreement should record the practical expectations as well as the payment terms. This can include supervision arrangements, contact with birth family, transport, health or education appointments, household boundaries, recording requirements and the professionals involved. Clear documentation helps everyone understand what is expected and makes it easier to identify when the placement needs to be reviewed.

The assessment should not focus only on the payment. A complex placement must be suitable for the foster carer’s skills, household, available space and existing commitments. Providers should explain the child’s known needs, likely challenges, required training and the support available before a decision is made. Foster carers should be able to ask questions and consider whether they can meet the placement safely and consistently.

Additional support may include specialist training, regular supervision, advice from a supervising social worker, help from therapeutic or education professionals, respite arrangements and meetings with the wider care team. These forms of support are separate from payment and should not be treated as a substitute for an appropriate financial agreement.

Payments can be reviewed if the child’s needs change, if new information becomes available or if the level of care required is different from that originally described. A review may result in an enhanced payment being introduced, changed or ended, depending on the provider’s policy and the circumstances. Ask how disagreements are handled and who to contact if the care required becomes significantly greater than expected.

If you are considering fostering, request a full explanation of the provider’s allowances, fees and arrangements for complex placements during the assessment process. Become a Foster Family can provide local guidance across the West Midlands, helping prospective foster carers understand how payment structures work and what questions to raise before agreeing to a placement.