What determines the fostering payment for each placement?

The fostering payment for a placement is set by the fostering service’s payment framework and then matched to the circumstances of the individual placement. It is not usually a single amount that applies to every child or every foster family. The service considers the care arrangements required, the carer’s approval and the terms of the placement before confirming what will be paid.

Most fostering services separate the payment into two broad elements:

• An allowance , intended to contribute towards the everyday cost of caring for the child, such as food, clothing, household costs, travel and activities.
• A fee or professional payment , where applicable, which recognises the foster carer’s time, skills, responsibility and commitment to fostering.

Not every fostering service structures its payments in exactly the same way. Some may use different terminology, combine elements, or have separate arrangements for particular fostering programmes. The written payment terms should explain how the amount is made up and which expenses are included.

The matching process is central to the calculation. Before a placement begins, the fostering service should consider whether the child’s needs can be safely met within the proposed household. This may include the level of supervision required, health or emotional needs, education and transport arrangements, contact with family members, the expected length of the placement, and whether specialist support or equipment is needed. Where these arrangements create additional responsibilities or costs, the service should explain how they will be addressed financially.

The carer’s approval and experience can also affect the applicable payment framework. A service may have different rates or terms for newly approved carers, experienced carers, specialist placements, sibling groups, parent-and-child placements, emergency arrangements or other types of fostering. These categories are set by the individual fostering service, so a rate used for one programme should not be assumed to apply to another.

The child’s age can influence the allowance because everyday costs and practical arrangements are not identical for all age groups. However, age is only one part of the assessment. The payment should reflect the overall plan for the placement rather than being based on age alone.

Payments may be reviewed when circumstances change. Examples include a significant change in the child’s needs, a change to contact or transport arrangements, an extension of the placement, or an agreed move to a different type of care. A review does not automatically mean that the payment will increase or decrease; it means the service should check that the agreed terms still reflect the placement.

Before accepting a placement, prospective foster carers should ask for the relevant payment information in writing. Useful questions include:

• What is the standard allowance and what does it cover?
• Is a separate fee paid, and what responsibilities does it recognise?
• Are additional costs agreed in advance or claimed separately?
• How are travel, contact, activities, clothing, equipment and education-related costs dealt with?
• What happens to the payment if the placement changes or ends earlier than expected?
• When and how will payment details be reviewed?

The fostering service should provide clear placement information alongside the child’s care plan and financial terms. If anything is unclear, ask the supervising social worker or fostering team to explain the calculation before agreeing to the placement. This helps ensure that the practical responsibilities, expected expenses and payment arrangements are understood from the outset.