Are foster carers entitled to a Christmas allowance?

A Christmas payment is discretionary rather than a standard entitlement for foster carers. There is no single national Christmas allowance that every fostering service must pay. Whether you receive additional support depends on the policy of your local authority or independent fostering agency, the terms of your fostering agreement and, in some cases, the circumstances of the placement.

Foster carers normally receive a regular fostering allowance intended to contribute towards the everyday costs of caring for a child. A separate seasonal payment, where offered, may be designed to help with additional costs associated with Christmas, such as presents, food, celebrations, travel or activities. The payment may instead be provided as a voucher, gift budget or contribution towards an agreed item, so it should not be assumed that all services use the same arrangement.

Eligibility can depend on details such as:

• whether the child is living with you during the relevant period;
• how long the placement has been in place;
• whether the placement is permanent, short-term, emergency or respite care;
• how payments are handled when several children are placed together; and
• whether the fostering service requires a request or prior approval.

Some support may be arranged for the child separately from any payment made to the foster carer. For example, a local authority may have its own arrangements for gifts, celebrations or activities for children in care. This is different from a Christmas allowance paid under a fostering service’s financial policy.

To establish what applies to you, check the current fostering allowance policy and ask your supervising social worker or fostering service to confirm:

• whether a seasonal payment is available;
• who qualifies and whether the placement must meet specific conditions;
• how the amount or type of support is calculated;
• when it is paid or provided;
• whether you need to apply or submit receipts; and
• how the arrangement works if a child moves placement, stays with another carer or has contact with their birth family over Christmas.

Do not make Christmas spending decisions on the assumption that an extra payment will be available. Ask for the policy in writing if the information is unclear, particularly where a placement begins shortly before Christmas or where a child has additional needs that may create extra costs. Any exceptional financial request should normally be discussed and agreed with the fostering service before the expense is incurred.

It is also important to distinguish a Christmas payment from the standard fostering allowance and from special fostering payments. The standard allowance is intended to support the ordinary costs of caring for a child, while a special payment may be agreed for an identified need or a particularly complex placement. A seasonal payment, if available, is governed by its own policy and does not automatically follow from either of those arrangements.

Finally, ask how any additional payment is recorded for tax and financial purposes. Foster care income can be subject to specific rules, and the treatment of an extra seasonal payment may depend on the nature of the payment and your individual circumstances. Your fostering service can explain how it reports the payment; an accountant or tax adviser can provide advice about your personal position.