What should foster carers know about payment dates each month?

Foster carer payment dates are the agreed points in the monthly payment cycle when your fostering allowance and any approved fee are transferred to you. The exact arrangement depends on the fostering service, so the important details are the payment date, the period it covers and any deadline for reporting placement changes.

Before a placement begins, ask for a clear explanation of:

• whether payments are made in advance or in arrears;
• which day of the month payments are normally processed;
• how weekends and bank holidays affect the transfer date;
• when changes to a placement must be submitted for inclusion in that month’s payment; and
• how the service deals with corrections, overpayments or underpayments.

This information may appear in your fostering agreement, payment schedule, handbook or finance guidance. Keep these documents together so you can compare the amount received with the placement dates and the agreed payment terms.

The first payment can follow a different timetable from later monthly payments. This may be because the placement started after the service’s administrative cut-off, because checks were needed before the payment was authorised, or because the first payment covered only part of a month. It is sensible to ask how the first payment will be handled before accepting a placement, rather than assuming that every payment will cover a complete calendar month.

Payment calculations may also need to reflect changes during the month. Examples include a child moving into or out of your home, an approved change in the placement arrangement, or an agreed period when the child is not staying with you. The fostering service should explain how these changes affect the payment record and whether they will appear in the next payment or be adjusted later.

Keep a simple record of:

• the child’s placement start and end dates;
• any agreed changes to the placement;
• the payment date shown in your schedule;
• the amount expected and the amount received; and
• messages or documents relating to payment adjustments.

This record helps you identify whether a difference is caused by a changed placement, a processing cut-off or a possible administrative error. It is also useful when discussing a query with your fostering service or supervising social worker.

If a payment does not match the agreed arrangement, ask for a written breakdown rather than relying on the amount shown in your bank account alone. Check whether the difference relates to an allowance, a fee, an expense reimbursement or a previous adjustment, as these may be recorded separately. Do not assume that a higher payment is correct; an overpayment may need to be repaid, and the service should explain how that would be managed.

Payment dates are separate from tax treatment and from the wider costs of caring for a child. A payment schedule tells you when money is expected, but it does not by itself explain which elements are taxable, what expenses can be claimed or what records you should retain. Ask the fostering service for current guidance on those points and obtain independent financial advice where appropriate.

When comparing fostering arrangements, look beyond the headline payment date. Confirm what each payment includes, how placement changes are handled and who can explain a discrepancy. A written, easy-to-follow payment process gives you a clearer basis for planning household finances while you foster.