Can foster carers receive payments between placements?

Foster carers may receive a payment between placements, but there is no single national rule requiring every fostering provider to pay one. The arrangement depends on your fostering agency or local authority, the terms of your fostering agreement, your approval status and any conditions attached to remaining available for a placement.

Payments made while no child is living with you are often described as a retainer , holding payment or payment between placements . They are different from the fostering allowance normally paid to meet a child’s day-to-day costs, because there is no child in placement whose expenses are being covered. Some providers offer a separate payment to recognise the carer’s continued availability; others only make payments when a child is placed.

Where a between-placement payment is available, the agreement should explain:

• who is eligible, such as newly approved carers or carers who have previously had a placement;
• whether the payment applies after every placement or only in particular circumstances;
• how long it can continue;
• whether the carer must remain available for a suitable placement;
• what happens if the carer takes an agreed break or becomes temporarily unavailable;
• whether required training, supervision, reviews and other fostering responsibilities must be maintained; and
• when the payment starts and ends in relation to a placement moving in or leaving.

Eligibility may also depend on the type of approval you hold and whether your household can still offer the placements you have been approved for. For example, an agency may review whether your circumstances, spare bedroom, approval category and availability remain suitable before continuing a payment. These requirements are not identical between providers, so an arrangement described by one fostering service should not be assumed to apply elsewhere.

It is important to establish whether a payment is guaranteed under the written agreement or is discretionary. A policy may allow a provider to make payments in certain circumstances without creating an entitlement in every case. Ask for the current terms in writing and check whether they can be changed following a review of the agreement or approval status.

The end of one placement and the start of another can involve several different situations. A payment arrangement may be treated differently where:

• a placement ends as planned and you remain approved and available;
• a child moves out unexpectedly;
• you are taking an agreed break before accepting another placement;
• you are waiting for a suitable match rather than any placement; or
• your approval is being reviewed, suspended or changed.

These distinctions matter because fostering providers need to consider matching, safeguarding and the child’s needs rather than placing a child simply to maintain a carer’s income. Remaining available does not necessarily mean accepting every referral. A suitable placement should fit the terms of your approval and the information available about the child, while the provider’s policy determines how that period is treated financially.

When planning your finances, do not assume that a payment between placements will continue until another child arrives. Allowances and fees may stop when a placement ends, while any retainer may have its own limit or conditions. You should also ask how payments are affected by planned holidays, sickness, a change in household circumstances, a temporary pause in fostering or a decision to reduce your availability.

Before applying or accepting approval, useful questions to put to the fostering service include:

• Do you make any payment when an approved carer has no child placed?
• Is it a retainer, an allowance, a fee or another type of payment?
• What conditions must be met to qualify?
• How is availability defined, and can I decline a referral that does not match my approval or household?
• How long can the payment continue?
• What events would pause or end it?
• Are payment arrangements different for newly approved carers?
• Where are the terms recorded, and how are changes communicated?

Keep records of the dates on which a placement ends, when you confirm availability and any communication about eligibility. If a payment is not made as expected, the written agreement and the agency’s complaints or review procedure should be the starting point for clarification. Because fostering payment arrangements can affect household budgeting and may have tax implications, obtain current financial guidance based on your own circumstances rather than relying on general statements about payments between placements.