When do foster carers receive their first payment?

The date of a foster carer’s first payment is determined by the fostering provider’s payment run and the placement start date recorded in its system. It is not usually linked to the date approval is granted, completion of training or the date an application is submitted. A carer normally needs an active placement and completed payment records before the first transaction can be processed.

There may be a short administrative stage between a child moving in and the payment being released. The provider may need to confirm the placement, record the agreed terms, check bank details and complete internal approval. If the placement begins part-way through a payment period, the first amount may cover only the eligible days or part of that period, depending on the provider’s rules.

Before accepting a placement, ask the fostering agency to confirm:

• the date the first payment is expected to reach your account;
• the date used to calculate the first payment;
• how part-period placements are treated;
• whether any forms or bank details must be supplied before processing;
• which elements are fostering allowances and which are any fee or other payment;
• who to contact if the amount or date does not match the agreed information.

The payment schedule should be explained as part of the financial information provided to you. Keep the written agreement, placement records and payment statements together, as these documents make it easier to check that the first payment reflects the agreed arrangement.

Payment timing can also be affected by changes made shortly after a placement begins. For example, an amended placement end date, a change in the child’s arrangements or a correction to recorded information may lead to an adjustment in a later payment. This does not necessarily mean the original payment was incorrect, but the provider should explain any difference clearly.

Fostering finances should be planned around the provider’s stated schedule rather than assuming that money will arrive on the day a child moves in. During the assessment and matching process, ask for a current payment guide and discuss how the first payment is handled for the types of placements you are considering, including planned, emergency or respite care. The exact arrangements vary between fostering providers, so the agency responsible for your approval is the appropriate source for a confirmed date.