What records should carers keep for a temporary foster care allowance?

The records for a temporary foster care allowance should create a clear audit trail showing what was agreed, what was received and how the allowance was administered. They should be detailed enough for you, your fostering provider or the local authority to resolve a query without relying on memory.

Keep the written basis for the allowance. Retain the documents that explain why the allowance was agreed, including the relevant approval, payment arrangement, agreed rate, review date and any conditions attached to it. If the amount or arrangement changes, keep the updated confirmation alongside the earlier document rather than replacing it. This makes it possible to see which terms applied at each stage.

• Keep copies of approval forms, payment schedules and amended arrangements.
• Note who authorised a change and the date it took effect.
• Record any agreed exceptions, such as additional funding for an identified need, in writing.
• Keep payment statements or remittance advice with the related allowance information.

Reconcile the paperwork with the money received. A simple running reconciliation can show the amount expected, the amount received and any difference. Mark each entry when it has been checked against the relevant statement or payment notification. If a payment is late, duplicated or incorrect, record the issue, the date it was raised and the outcome. This is more reliable than trying to reconstruct the position several months later.

It is also useful to keep a brief explanation of how the allowance was managed where the arrangement involves more than one household account or a mixture of allowance funds and your own money. Do not rely on a single undifferentiated bank account if that would make the records difficult to understand. The aim is not to create unnecessary administration, but to make the movement of funds transparent.

Record changes affecting the allowance. Keep a dated note when circumstances change, for example if the placement is extended, paused, transferred, becomes a respite arrangement or ends earlier than anticipated. The note should identify the practical change and any resulting instruction about the allowance. Keep this separate from the child’s wider fostering records, while ensuring the two sets of records can be cross-referenced when necessary.

For each entry, use a consistent format. A spreadsheet, paper ledger or secure finance app may be suitable, provided it can be understood by someone else. Useful columns include:

• date of the transaction or decision;
• description and purpose;
• amount received or paid;
• the account or method used;
• reference to the supporting document; and
• any follow-up action or unresolved query.

Make entries promptly and use an agreed naming system for electronic files. For example, documents can be organised by placement or allowance period, with consistent file names. Scan paper documents where appropriate, keep a secure backup and check that scans remain readable. If a mistake is found, do not delete the original entry without explanation. Add a dated correction or retain the original with a note showing what was changed and why.

Protect confidentiality. Allowance records may contain the child’s name, placement information, health details or other personal data. Store them securely, limit access to people who need the information for fostering, finance or oversight purposes, and avoid sending sensitive documents through unsecured personal messaging channels. Do not leave paper records or unlocked devices where visitors or other children can see them.

The allowance file should not replace records that your fostering provider requires for the child’s care, contact arrangements, health, education or safeguarding. Those records may have separate formats and retention rules. Follow the provider’s instructions for both sets of information, and ask which documents should be retained if you are unsure. There is no single retention period that applies to every fostering arrangement, so obtain written guidance before destroying records.

If a document is missing, create a note explaining what is unavailable, when you noticed the gap and what steps you took to obtain a replacement. Do not guess figures or recreate evidence as though it were original. Contact the fostering provider or local authority promptly if the missing information affects the amount paid, the use of funds or the end-of-year records.

Before filing the records, check that the approval terms, payment information, dated changes and financial entries tell a consistent story. A well-organised file reduces avoidable queries and gives you useful evidence if the temporary arrangement is reviewed.