Can foster carers receive fostering for adoption pay?

Payment during a fostering for adoption placement depends on the child’s legal status, the terms of the placement and the carer’s employment circumstances. A person approved to foster may receive a fostering allowance while the child is placed under fostering arrangements. If the placement later becomes an adoption placement, that fostering payment may change or end, and any adoption-related payment is considered separately.

Fostering allowance during the placement

Fostering for adoption allows a child who may be adopted to live with approved adopters before the adoption is legally completed. Although the carers may intend to adopt, they are initially caring for the child under a fostering arrangement. The fostering agency or local authority should explain:

• the fostering allowance that applies to the placement;
• whether any fostering fee or other payment is included;
• which expenses are covered separately;
• how payments are made and recorded; and
• what happens financially if the placement changes or ends.

Rates and arrangements can vary between agencies and local authorities, so prospective carers should request the current written terms before accepting a placement. The child’s age, needs and circumstances may also affect the support provided.

Can carers receive statutory adoption pay?

Statutory adoption pay is an employment benefit, not a standard payment for becoming an adopter or accepting a fostering for adoption placement. An employed carer may qualify through their employer if they meet the relevant rules on continuous employment, average earnings, notice and the timing of the adoption. The employer normally assesses entitlement and pays statutory adoption pay where the conditions are met.

Foster carers who are self-employed, not employed, or do not meet the statutory conditions will not automatically receive statutory adoption pay. Fostering income or a fostering fee does not, by itself, create entitlement to employment-based adoption pay. Couples should also check which person is taking adoption leave, as employment rights are assessed for each individual.

What happens when adoption becomes the legal arrangement?

Fostering payments are linked to the fostering placement. When an adoption placement is formally approved or an adoption order is made, the financial arrangement will usually be reviewed. The fostering allowance may stop, while a local authority could consider adoption support or an adoption allowance under its own policy and the child’s circumstances. This is not automatic and should not be assumed to match the fostering allowance.

Adoption support can sometimes include help with specific costs, therapeutic services, equipment or other needs, but eligibility and payment arrangements differ. Ask the adoption service and fostering agency to explain the transition in writing, including the point at which each payment starts or ends.

Questions to ask before accepting a fostering for adoption placement

• What allowance will be paid during the fostering period?
• Is a fee included, and are there any placement-specific expenses?
• How long will the fostering payment continue if adoption proceedings progress?
• What support may be available after the placement changes to adoption?
• Could the payments affect benefits, tax or household budgeting?
• Who should be contacted if the child’s legal status or care needs change?

It is sensible to discuss employment leave and pay with an employer and obtain independent benefits or tax advice where necessary. The fostering agency should provide a payment schedule and explain how its allowance policy applies to fostering for adoption, so carers can make an informed financial plan before proceeding.