How is a temporary foster care allowance calculated?

A temporary foster care allowance is calculated under the fostering provider’s approved payment framework for the individual placement. There is no single national formula that applies to every temporary placement, so the written breakdown should show the standard allowance, any placement-specific additions and how the payment period is worked out.

The calculation will usually distinguish between the amount intended to meet the child’s everyday costs and any payment made to recognise the carer’s role, skills or additional responsibilities. Depending on the provider, these may appear as separate lines or as one combined fostering payment. Check which approach is being used before agreeing to a placement.

Factors that can affect the calculation include:

• the child’s age and day-to-day care requirements;
• whether the placement is straightforward, emergency, respite or involves more complex needs;
• the number of children placed together and any additional supervision required;
• the skills, training or specialist experience expected of the foster carer;
• travel, contact arrangements or other activities that have been approved as part of the placement; and
• whether the placement is being paid under a standard, enhanced or specialist rate within the provider’s framework.

Some costs are treated as part of the regular allowance, while others may need separate approval. For example, ordinary food, clothing, household use and routine activities may be covered within the agreed rate, whereas an unusual item or one-off expense may require prior authorisation. Do not assume that an expense will be reimbursed simply because it relates to the child; ask the supervising social worker or finance team how it must be agreed and recorded.

The payment period also matters. Providers should explain whether the allowance is calculated by night, week or another agreed period, and how part-period placements are handled. If a child arrives or leaves partway through a payment period, the provider may apply a pro-rata calculation, but the precise method is determined by its policy. The written terms should also clarify how changes to the placement are reflected in later payments.

A temporary placement can be reviewed if the child’s needs, living arrangements or required level of supervision change. A review may lead to a different agreed rate or to additional costs being considered. Any change should be confirmed in writing, including the date from which it applies, so that the carer knows what will be paid and which costs remain their responsibility.

Before a placement begins, ask for a payment schedule or statement that sets out:

• the basic rate and the period to which it relates;
• any fee, skills payment or enhancement included;
• approved additional expenses and the evidence needed for them;
• the treatment of a part-period, extension or early ending; and
• who to contact if the agreed circumstances change or a payment appears incorrect.

This information makes it possible to understand the expected income from the placement without confusing the allowance with a general household benefit. Keep the written agreement, payment statements and receipts for approved expenses together, and raise discrepancies with the provider promptly.