What payment records should foster carers receive?

Payment records are the statements, schedules or remittance advice that explain how a fostering payment has been calculated and processed. They should allow you to match the money received with the relevant placement, payment period, agreed rates and any separate expenses or adjustments.

Records may be provided in different formats. Depending on the fostering provider, you may receive a payment statement, a scheduled payment notification, an online record or a document accompanying the payment. The format is less important than the information it contains. A bank statement confirms that money reached your account, but it does not usually explain how the amount was worked out, so it should be kept alongside the provider’s own record.

A useful payment record will normally identify:

• the foster carer or household receiving the payment;
• the placement or child to which the payment relates, where this information can be shown appropriately;
• the relevant payment period;
• the agreed fostering allowance or fee;
• any additional approved payment, such as an agreed supplement or one-off amount;
• reimbursed expenses, if these are processed through the payment system;
• deductions, corrections, overpayment recoveries or other adjustments;
• the final amount due and the date it was processed; and
• contact details or a reference that allows the calculation to be queried.

Not every fostering provider uses the same payment structure. Some records may separate the allowance for the child’s day-to-day care from a fee for the carer’s work. Others may show different elements together, provided the statement makes the calculation understandable. Expenses may appear separately from the regular fostering payment, particularly where receipts or prior approval are required.

Check the record against your fostering agreement. The agreement or payment information supplied by your fostering provider should explain the applicable rates, what each element is intended to cover, how expenses are authorised and how changes are dealt with. When a child moves into or out of the household during a payment period, the record should make clear whether the amount has been apportioned or otherwise adjusted. If a placement ends, any final payment or correction should also be identifiable rather than appearing as an unexplained change.

Payment records are particularly important where a placement is temporarily absent, changes arrangement or involves more than one child. In these circumstances, the amount may not look identical from one period to the next. A difference is not necessarily an error, but the record should provide enough information for you to understand whether it relates to dates, approved expenses, a revised arrangement or a correction.

Keep supporting documents with the payment record. Depending on your provider’s process, these may include expense claims, receipts, mileage records, written approval for additional costs, placement-end information and correspondence about a correction. Keeping documents together creates a clear audit trail and makes it easier to prepare information for a tax return or respond to a query later. Your accountant or tax adviser can explain which records you need to retain for your circumstances.

Payment records are not necessarily the same as employee payslips. Foster carers should not assume that a payslip will contain every detail or that a bank entry is a complete statement. The important point is that you can see what was paid, why it was paid and how any change was calculated. The tax treatment of fostering income can involve specific rules, so payment records should be retained even where a tax bill is not expected.

Review each record when it arrives. Check the placement details, dates, payment components and any deductions against your own records. Raise a query if:

• a payment is missing or appears to relate to the wrong period;
• an agreed allowance, fee or expense is not shown;
• the amount differs from the information in your fostering agreement without an explanation;
• a deduction or recovery has been made unexpectedly;
• the placement dates do not match your records; or
• an adjustment is shown without identifying the original payment or reason.

Start with the payment or finance contact named on the statement, then involve your supervising social worker or local fostering team if the issue relates to placement arrangements. Ask for a written explanation where a correction is made, so that your records show both the original entry and the outcome. If you believe an agreed payment has not been dealt with correctly, follow the provider’s formal complaints or review procedure as well as raising the immediate query.

Store records securely, particularly where they contain information about a child or placement. Keep digital copies in a protected location and avoid sending sensitive documents through an insecure channel. Your local fostering team can confirm which statements, expense records and annual summaries they provide, and explain how to obtain a replacement if a document is lost.