How are foster carer payments calculated?

Foster carer payments are calculated by combining the allowance for a child’s everyday care with any professional fee and approved additional payments. The total is then adjusted in line with the fostering service’s payment scheme, the child’s circumstances and the terms of the individual placement.

The maintenance allowance is intended to meet the ordinary costs of looking after a child. This can include food, clothing, personal items, household costs, travel connected with care and money for activities. The allowance is commonly organised into age-related bands because the expected cost of caring for a younger child may differ from that of caring for an older child. It is paid for the child in placement rather than being a general salary.

The professional fee recognises the foster carer’s role and responsibilities. Some services include a fee within their standard payment, while others show the maintenance allowance and fee as separate elements. The fee may vary according to the fostering service’s scheme, the type of approval held and the responsibilities attached to the placement.

Additional payments may be considered where a placement involves requirements beyond ordinary day-to-day care. These could relate to specialist training, complex care arrangements, particular equipment, travel or other agreed costs. They should be discussed and authorised through the fostering service rather than assumed to form part of the standard allowance.

When a child is placed, the fostering service normally confirms the payment arrangements in the placement documentation. This should explain the applicable allowance, any fee, agreed extra costs, how payments are made and what happens if the placement changes. The calculation may therefore be different for two children of a similar age if their approved care arrangements have different requirements.

Payments can also be affected by the number of children placed and whether they are living together as siblings. Each child’s allowance is generally considered separately, but the fostering service may set specific rules for sibling placements, shared costs and any additional responsibilities. A carer should check whether an amount is paid per child, per placement or for an agreed household expense.

The timing of a placement can matter as well. A service may have rules for the start date, end date, planned introductions, short breaks and periods when a child is temporarily away from the foster home. These rules determine whether a full allowance, a part payment or another agreed amount applies. The written payment policy is the most reliable source because arrangements differ between fostering services.

Foster carer payments are not normally calculated simply by multiplying a fixed rate by the number of days involved. The service also considers the approved terms of the placement, the costs it has agreed to cover and whether any payment is a fee or a reimbursement of expenses. Keeping receipts and records may be necessary where additional costs must be claimed separately.

Before accepting a placement, ask the fostering service to explain:

• which part of the payment is the child’s maintenance allowance;
• whether a professional fee is included and how it is determined;
• which expenses are covered automatically and which require prior approval;
• how payments change for siblings, respite, emergency or short-term placements;
• what happens when a child’s needs or placement arrangements change; and
• when the first and subsequent payments are expected to be made.

These questions help you compare payment information accurately. The headline amount alone does not show the full arrangement: you also need to understand what it is designed to cover, which costs are separate and how the fostering service reviews or updates its payment scheme.

Anyone considering fostering should treat the payment framework as part of the wider assessment process. A fostering service will look at your household’s ability to meet a child’s needs, your available space, training and support arrangements, as well as the financial details. Ask for the current payment policy and placement-specific information before making a decision, as rates and terms can be revised.