How is foster carer pay per month calculated?

Foster carer pay per month is worked out from the payment terms attached to a specific fostering placement. The calculation normally starts with the rate agreed for that child, adds any eligible professional fee or additional payment, and then adjusts the result for the part of the month during which the child is placed. The amount shown on a payment statement should therefore reflect the placement agreement and the actual dates covered, rather than being a fixed salary.

The main parts of the calculation are usually:

• The child’s maintenance allowance: this is intended to contribute towards day-to-day costs such as food, clothing, personal care, travel and activities. The relevant rate may depend on the child’s age and the type of care required.
• The fostering fee: where applicable, this recognises the carer’s professional role and the time, responsibility and commitment involved in fostering. Whether a fee is included, and how it is calculated, depends on the fostering provider’s payment structure and the placement.
• Additional agreed payments: some arrangements include separate payments for factors such as enhanced support, specific training or particular placement requirements. These should be explained before the placement is accepted.

The placement agreement is the key document for checking how these elements fit together. It should set out the applicable rates, what each payment is intended to cover, and whether any additional amounts have been authorised. A carer should ask for clarification before agreeing to a placement if the wording is unclear, particularly where a child has needs that may involve extra travel, equipment, supervision or other costs.

Monthly calculations also take account of the dates on which the placement applies. A placement beginning or ending part-way through a payment period is generally calculated for the eligible days rather than treated as a complete month. The method used may be based on a daily rate or another arrangement stated by the provider. This is why the first or final payment for a placement may differ from the amount received for a full payment period.

Where more than one child is placed, each placement is normally assessed under its own agreed rate and payment terms. The total household payment is then based on the individual placement calculations. Sibling placements or children with additional needs may have arrangements that differ from the standard rate, so the combined figure should not be estimated simply by multiplying one payment by the number of children.

A useful way to understand the calculation is:

Payment for the period = agreed placement allowance for the eligible days + applicable fostering fee + authorised additional payments.

This is a guide to the structure rather than a universal formula. Providers can use different names for the allowance and fee, and payment arrangements may vary between local authorities and independent fostering organisations. The rate can also be reviewed when the child’s circumstances or placement plan changes. Any revision should be explained to the foster carer, including when it takes effect.

Before applying, prospective foster carers can ask the fostering service to show an illustrative calculation using its current terms. Useful questions include:

• What allowance applies to the age and type of placement being considered?
• Is a professional fee included, and what conditions apply to receiving it?
• How are part-month placements and changes in placement dates calculated?
• Which costs are expected to come from the allowance, and which may be agreed separately?
• How are enhanced or specialist placements assessed?
• Where will the agreed rates and payment dates be recorded?

It is also sensible to keep payment statements and records of placement dates and agreed additional costs. Comparing these records with the placement agreement can help identify whether a payment has been calculated for the correct period. If the amount does not appear to match the agreed terms, the foster carer should raise it with the supervising social worker or the fostering service’s finance contact and ask for a written breakdown.