Do foster carers receive payments between placements?

There is no single national rule requiring foster carers to receive a payment between placements. Whether any money is paid during a gap depends on the fostering provider’s policy, the type of arrangement you have agreed and the terms set out in your fostering agreement.

Fostering finances commonly include two separate elements:

• An allowance for the child’s care: this is intended to meet the costs of looking after a child, such as food, clothing, personal items, activities, travel and household expenses. It is generally connected to an active placement.
• A fee or payment for the carer’s role: some providers may pay a professional fee, which can have its own conditions. This does not automatically mean it continues during every gap between placements.

Some providers have an availability or retainer arrangement for approved carers who remain ready to accept a placement. This may depend on factors such as your approval, the type of placements you can take, any restrictions on your availability and the provider’s current arrangements. It should not be assumed that remaining approved alone creates an entitlement to this payment.

Your fostering agreement should explain how payments work when a placement ends and before another begins. Check specifically:

• whether any payment is available when no child is living with you;
• whether an availability payment is conditional on accepting suitable referrals;
• how the provider defines your availability;
• when payments start and stop;
• what happens if you take a planned break or temporarily cannot accept a placement;
• whether the arrangement changes if a placement ends unexpectedly; and
• how any payment will be shown in your payment statement or records.

It is also important to ask what happens to expenses after a child leaves. Some costs relate directly to the placement and may stop when the placement ends, while other commitments, such as travel arrangements, equipment or changes made to the household, may not disappear immediately. Your provider should explain which costs are included in the fostering allowance and which need separate approval.

Between placements, you remain an approved foster carer unless your approval has changed or ended. You may still have responsibilities connected with supervision, training, reviews or keeping your household ready for fostering. However, those responsibilities do not by themselves establish a right to an allowance between placements; the payment terms must come from your provider’s written policy and agreement.

If you are comparing fostering providers, ask for a clear explanation of the financial arrangements before applying. Request examples of how payments would work during an active placement, after a placement ends and during a period when you are available but no match has been made. This gives you a more realistic basis for planning household finances than relying on a headline allowance alone.

Because payment policies can change and may differ between providers, read the current fostering agreement carefully and raise any uncertainty with your agency before accepting approval. Keep copies of the agreement, payment schedules and statements so you can check that payments reflect the terms you were given.