Are respite payments separate from your standard fostering allowance?

Respite fostering payments are normally shown separately from the standard fostering allowance. This is because they relate to different elements of the arrangement: the fostering allowance helps meet the child’s agreed day-to-day costs, while a respite payment may recognise the care provided during a short-term stay. The way these amounts are combined, divided or recorded depends on the fostering provider and the individual placement plan.

Respite care can be arranged for several reasons, such as giving a child’s usual foster carer a planned break, supporting a placement during a particularly demanding period, or helping a child move between arrangements. The respite carer may look after the child for an agreed period while the child’s main placement remains in place. This means the financial arrangements need to account for both the temporary care and the costs that continue to arise in the child’s usual home.

What the separate payments may represent

• Fostering allowance: money intended to contribute towards the child’s everyday needs, such as food, clothing, personal items, activities and other agreed costs.
• Respite payment or fee: an amount linked to providing care for the temporary placement. It may reflect the length and nature of the arrangement, the provider’s policy and the responsibilities involved.
• Additional expenses: some costs may be dealt with outside the main payment, provided they have been agreed in advance. These could include specific travel or activity costs, but the eligible items and approval process vary.

Not every provider labels these elements in the same way. A payment may appear as a respite allowance, a fostering fee, a placement payment or a combination of separate entries. The name used on a statement does not, by itself, establish what the money covers. The written terms should explain whether the amount is intended for the child’s expenses, the carer’s time and responsibilities, or both.

Who receives which amount?

The answer depends on the placement agreement. In some arrangements, the respite carer receives an agreed payment for the period they provide care. The child’s usual foster carer may continue to receive an amount connected with the ongoing placement, particularly where costs or responsibilities remain with them. In other arrangements, the provider may make a different allocation. There is no single payment structure that applies to every respite placement.

For that reason, a respite carer should not assume that the full standard fostering allowance automatically transfers to them, or that a respite payment replaces every other element of the allowance. Before accepting a placement, ask the supervising social worker or provider to confirm in writing:

• the total payment for the respite period;
• which part is intended to cover the child’s everyday costs;
• whether a separate fee or payment recognises the care provided;
• how travel, activities, clothing, meals and other agreed expenses are handled;
• what happens if the placement starts late, ends early or is cancelled; and
• when each payment will be made and how it will appear on the payment statement.

Why the placement agreement matters

The agreement should set out the practical and financial details before the respite stay begins. It should identify the dates, the child’s needs, the responsibilities of each carer and the payment arrangements. If the placement changes, ask for the financial details to be reviewed rather than relying on a verbal assumption.

It is also important to keep records of payments and approved expenses. Retain payment statements, receipts and any written confirmation from the provider. This makes it easier to check that the agreed amount has been paid and gives you useful information for discussing tax or financial records with an accountant or HMRC where appropriate. The tax treatment of fostering and respite payments can depend on the type of payment and the circumstances, so it should not be assumed that every amount is treated identically.

In practical terms, the key distinction is between money intended for the child’s upkeep and money connected with providing respite care. Both may be part of the overall financial arrangement, but they should be identified clearly so that you understand what you are expected to pay for and what you will receive. Your fostering provider can confirm the applicable arrangement for a particular placement before you agree to provide care.