Do All Foster Carers Receive the Same Payment?

Foster carers do not all receive the same payment. The amount and structure depend on the fostering service, the type of placement, the child or young person’s needs, and the responsibilities involved. Payments are usually explained as a combination of a fostering allowance and, in some cases, a separate fee or professional payment.

The fostering allowance is intended to cover the everyday costs of caring for a child. This can include food, clothing, personal items, travel, activities, household costs and contributions towards birthdays or celebrations. The allowance is not normally treated as a wage for the carer’s time; its purpose is to meet the child’s needs while they are living with you.

A fostering fee may be paid in addition to the allowance, depending on the service and the placement. This recognises the carer’s role, experience, skills and the level of commitment required. Not every fostering service uses the same terminology or payment model, so it is important to check whether an advertised figure includes the allowance, the fee, or both.

Several factors can affect the amount paid:

• The fostering service: Local authorities and independent fostering agencies set their own payment structures, subject to the relevant fostering requirements. Their policies may differ in how they describe rates, fees, allowances and expenses.
• The child’s age: Older children may have different day-to-day costs from younger children, including food, clothing, transport, pocket money and activities.
• The placement’s complexity: A placement involving significant emotional, behavioural, health or practical needs may require additional skills, supervision, appointments or support. Some services offer enhanced payments for these arrangements.
• The carer’s skills and experience: Certain placements may require specialist knowledge, previous experience or additional training. Some payment schemes reflect this through different fee levels or payment bands.
• The type and length of placement: Emergency, short-term, long-term, respite, parent-and-child and specialist placements may be treated differently. The payment arrangements should be confirmed for the particular placement rather than assumed from a general advertised rate.
• Additional approved costs: A service may have separate arrangements for agreed travel, equipment, activities or other costs. These should not automatically be confused with the regular fostering allowance.

Payment may also change during a carer’s fostering journey. Someone who is newly approved may initially receive the allowance applicable to their first placements, while a carer who develops further skills or accepts more complex arrangements may become eligible for a different fee level. Any change should be explained by the fostering service, including the conditions attached to it.

It is also important to distinguish between the payment available for a placement and the money a carer has left after meeting the child’s costs. An allowance can cover expenditure connected with fostering, so it should not be viewed in full as disposable household income. Keep records of relevant spending and ask the service which costs are included, reimbursed separately or expected to come from the allowance. Tax treatment is a separate issue and should be considered using current guidance.

Before applying, ask for a clear written explanation of:

• the standard allowance for the types of placement you may be approved for;
• whether any fee is paid separately from the allowance;
• how payments differ for age groups, placement types and levels of need;
• which expenses are included and which require prior approval;
• what happens to payments during planned breaks, changes of placement or periods without a child placed with you;
• whether training, meetings, appointments or other fostering duties attract a separate payment; and
• how and when the payment schedule can be reviewed or changed.

The figures discussed during an initial enquiry are not necessarily a personalised assessment of what you would receive. Your likely payment depends on the approval category, the placements considered suitable for your household and the current terms of the fostering service. A prospective carer should therefore compare the full payment structure, not just one headline amount, and make sure they understand the difference between money intended for the child’s care and any fee paid for the carer’s role.