Are Special Fostering Payments Separate From Standard Allowances?

The practical distinction is that a standard fostering allowance is intended to meet the ordinary costs of caring for a child, while a special fostering payment is an additional amount linked to circumstances that require more support or resources. The two amounts should be identified separately in the fostering service’s payment information and placement agreement.

A standard allowance may contribute towards everyday costs such as food, clothing, personal items, household expenses, travel and activities. It is normally connected to the child’s age, placement type or the fostering service’s allowance policy. A special payment has a different purpose: it recognises an exceptional or clearly assessed need that is not adequately covered by the usual allowance.

Special payments may be considered where a placement involves particularly complex needs, additional supervision, significant travel, specialist arrangements or other agreed demands on the fostering household. The exact circumstances vary between fostering services. A payment should therefore be based on the child’s assessed needs and the practical requirements of the placement, rather than being treated as an automatic increase to the normal allowance.

There may also be a difference in how the payment is structured. Depending on the fostering service’s policy, it could be:

• a regular additional payment for as long as the agreed circumstances continue;
• a one-off contribution towards an approved expense; or
• an enhanced payment linked to a particular placement arrangement.

The fostering service should explain which type applies, who can authorise it and what conditions attach to it. The written information should make clear the amount or method of calculation, the reason for the payment, when it starts, how long it is expected to continue and whether it will be reviewed.

Before accepting a placement, ask whether the special payment has been approved and recorded in writing. It is sensible to check:

• what aspect of the child’s needs or placement makes the payment applicable;
• whether the payment is additional to the standard allowance or replaces any existing element;
• which costs the payment is intended to help meet;
• whether receipts, records or other evidence are required;
• how often the arrangement will be reviewed;
• what happens if the child’s needs, placement or contact arrangements change; and
• when the payment will stop if the agreed circumstances no longer apply.

Approval may involve the child’s social worker, the fostering service’s finance or placement team and another authorised decision-maker. The process is likely to depend on the service’s own policy and the level of payment requested. Foster carers should not assume that a discussion about additional support is the same as formal approval: confirmation should come from the person or team authorised to agree payments.

If a placement is already under consideration, request a full breakdown of the standard allowance and any proposed special payment before making a decision. This allows you to understand which costs are covered routinely and which support is conditional on the child’s assessed circumstances. If the information is unclear, ask the fostering service to put the arrangement in writing and explain how it will be reviewed.

Policies differ between local authorities and independent fostering services, so one service’s approach cannot automatically be applied to another. Prospective foster carers can ask their fostering service for its current allowance policy, special payment criteria and placement-specific terms. Local guidance is particularly important because the figures, approval routes and review arrangements may change.