What payment records should foster carers receive?

A foster carer should receive a payment statement, remittance advice or equivalent record for each payment period. It should explain how the amount was calculated, identify the placement or dates concerned, and show the allowance, fostering fee, agreed expenses, deductions and any adjustments separately rather than presenting only one unexplained total.

The exact format varies between fostering services. Some provide a monthly statement through an online portal, while others issue a paper or emailed remittance advice. The important point is that the record gives enough information for you to understand and verify the payment against your fostering agreement, placement terms and any written arrangements about expenses.

A useful payment record will usually show:

• the name of the fostering service or paying organisation;
• the payment date and the period to which the payment relates;
• a placement reference or other identifier, using only the personal information needed to identify the placement safely;
• the fostering allowance, shown separately from any fee paid to the carer;
• approved expenses, such as agreed travel or one-off costs, where these are paid through the fostering service;
• any respite, training-related or other payment only where the fostering agreement says it is payable;
• deductions, recoveries, overpayment adjustments or corrections, with an explanation of what they relate to; and
• the total amount due and the amount actually paid.

Where a payment covers more than one child or more than one period, the statement should make the separate elements clear. A single combined figure can be difficult to check, particularly where children have different arrangements or where an expense is paid alongside the regular allowance. If the record uses abbreviations or codes, ask the fostering service to explain them and keep that explanation with your records.

Check the record in a consistent way. Compare the dates and placement reference with your own diary or placement documents, then check each payment line against the written terms that applied during that period. Look for changes caused by a placement starting or ending, a revised agreement, an approved expense, a correction to an earlier statement or a change in the payment arrangement. Do not assume that a lower or higher total is an error until you have checked whether one of these changes explains it.

If a figure does not match your records, contact the fostering service and ask for a written breakdown. State the payment period, the amount shown, the amount you expected and the document or agreement you used for comparison. Ask whether the difference is a delayed payment, an authorised adjustment, an expense being processed separately or an administrative error. Keeping the query in writing creates a clear record of what was asked and how it was resolved.

You may receive more than one document for the same period. For example, a regular payment statement may show the allowance and fee, while an expense claim form or separate remittance advice deals with approved costs. File related documents together so that the total can be understood later. A record of a payment is not necessarily the same as a payslip, particularly where fostering payments are administered under an arrangement that is different from ordinary employment.

It is also sensible to ask whether the fostering service provides an annual payment summary. This can help you reconcile the payments received during the tax year and prepare information for your tax records. Keep statements, expense evidence, agreements, payment queries and corrections together for the period required for your accounting or tax circumstances. If you are unsure which documents must be retained or how fostering income should be reported, obtain advice from HM Revenue and Customs or a suitably qualified tax adviser rather than relying on the payment statement alone.

Payment records should be stored securely because they may contain information about a child or placement. Use a secure folder for paper documents and password protection for digital records, and avoid forwarding statements unnecessarily. If a statement contains information that appears to belong to another carer or placement, do not circulate it; tell the fostering service so it can correct the mistake.

Before accepting a payment arrangement, ask the fostering service what statement you will receive, how often it will be issued, how expenses are recorded and who to contact about discrepancies. Clear records make it easier to understand your fostering payments, identify missing information and keep accurate personal and tax records throughout your fostering career.