Do foster carers receive payments between placements?

Whether foster carers receive money between placements depends on the fostering service and the agreement they have signed. The usual placement allowance is linked to the care of a child, while any payment during a gap may be a separate retainer, availability payment or other agreed arrangement. There is no single national rule requiring every fostering service to make payments between placements.

A fostering service may offer a payment to recognise that an approved carer remains available to foster. This is more likely to involve specific conditions than a standard placement allowance. For example, the agreement may require you to:

• remain approved and available for suitable referrals;
• keep your household and home ready for a placement;
• take part in required training, supervision and reviews;
• maintain relevant checks, records and safer-care arrangements; and
• tell the service about any period when you cannot accept a placement.

The amount, duration and conditions of an availability payment can vary. Some services may pay it only for a defined period, while others may use a different arrangement when a carer is between placements. A payment may also stop if approval is suspended, the carer becomes unavailable, or the terms of the agreement are not met. These details should be confirmed in writing rather than assumed from how another fostering service operates.

It is also important to distinguish between different types of fostering payment. A placement allowance is intended to contribute towards the costs of looking after a child, such as food, clothing, travel and activities, alongside any applicable fostering fee. A retainer or availability payment serves a different purpose: it relates to the carer’s approved status and readiness rather than the day-to-day costs of caring for a child. The agreement should explain how each payment is described and calculated.

Being approved does not necessarily mean that a placement will be made immediately or that a payment will continue throughout every gap. Matching considers factors such as the child’s needs, the carer’s skills, household circumstances, location and the type of approval held. A carer may therefore remain approved and undertake training or preparation while waiting for a suitable referral, without receiving a placement allowance for that period.

Before applying, or before signing an agreement, ask the fostering service to explain:

• whether it offers a retainer or availability payment between placements;
• who qualifies and whether the arrangement applies to all approved carers;
• when the payment starts and ends;
• what availability, training or administrative requirements apply;
• what happens during planned holidays, illness, household changes or a temporary pause;
• how the payment is recorded on statements; and
• whether the arrangement changes after a placement ends early.

These questions help you assess your finances realistically. Foster carers should not base their household budget on an assumed payment between placements unless it is clearly set out in the written terms provided by their fostering service. Ask for clarification from the agency’s supervising social worker or finance team if the payment schedule is unclear, and keep statements and correspondence for your records.

For prospective carers in Birmingham, Worcestershire, Staffordshire and the wider West Midlands, Become A Foster Family can explain how local fostering arrangements are structured, what questions to ask about allowances and retainers, and what support is available during the approval process.