Are weekly fostering payments paid directly to foster carers?
Yes. Weekly fostering payments are normally paid directly to the foster carer by the fostering service, using the agreed payment method and schedule; the precise arrangements should be confirmed before a placement begins.
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Fostering payments are made to the approved foster carer, rather than given to the child or paid into a child’s personal account. Where a placement is arranged through an independent fostering agency, the agency normally processes the payment to its foster carers. Where the carer is approved by a local authority, the local authority’s fostering service usually manages the payment.
The amount paid may include different elements, such as a fostering allowance intended to help meet the child’s day-to-day costs and, where applicable, a fee or professional payment for the carer. These elements can be shown separately in the fostering service’s payment information. The total can vary according to the child’s needs, the type of placement and the terms agreed with the service.
Payments are usually made using the bank details and payment method recorded by the fostering service. Foster carers should make sure the service has the correct details and should ask how changes to those details are verified. Payment arrangements should also explain whether payments are made in arrears or in advance, how the first payment is handled, and what happens when a placement starts or ends part-way through a payment period.
The fostering agreement and the service’s financial guidance should set out:
- the elements that make up the weekly payment;
- the usual payment schedule and method;
- whether any approved expenses are paid separately;
- how payments are calculated for partial weeks, respite or emergency placements;
- how changes in a child’s needs or placement arrangements can affect the amount; and
- who to contact if a payment is missing, incorrect or delayed.
A payment is not necessarily the same as ordinary employment wages. Foster carers are generally paid under the financial arrangements of the fostering service, so the paperwork should be read carefully to understand which parts are allowances, fees or reimbursements. Tax treatment can also depend on the carer’s circumstances and the applicable fostering tax rules.
Before accepting a placement, prospective carers should ask for the payment schedule and written terms rather than relying on a general figure discussed during an initial enquiry. A fostering assessment and approval process includes opportunities to discuss finances, and the supervising social worker or fostering team can explain how the arrangements apply to a particular placement.
A weekly fostering payment is intended to contribute towards the agreed costs of caring for a child, but it may not cover every additional expense connected with a placement. Items such as travel, equipment or activities may be dealt with under separate expenses guidance rather than being included in the regular payment.
Before spending money on an unusual or higher-cost item, check whether approval is needed and what evidence must be kept. A foster carer may be asked to retain receipts or provide an explanation so the fostering service can assess the expense under its policy. This helps distinguish the regular payment from separately agreed reimbursements and avoids assuming that every cost is covered automatically.
Find out more about weekly fostering payments
If you are considering fostering, contact Become A Foster Family to discuss the payment arrangements, application process and support available before you apply.