Can council fostering allowances change during a placement?

A council fostering allowance is normally based on the payment terms agreed for a particular placement, but it is not always fixed for the entire time a child remains in foster care. The relevant council may review the amount when its fostering policy changes, when the agreed care arrangements are revised, or when the child’s circumstances create a different level of support.

There are several different types of change to distinguish:

• A change to the council’s standard rates: A local authority may revise its allowance schedule as part of its regular financial or policy review. This could affect new placements, existing placements, or both, depending on the wording of the revised policy.
• A change linked to the placement: The child may move from one type of placement to another, such as a planned move towards permanence, a different level of care, or an arrangement with additional responsibilities. The financial terms should be explained when the arrangement is agreed.
• An additional or exceptional payment: Some councils make payments on top of the basic allowance where particular costs, duties or assessed needs apply. These payments may have their own approval criteria and may be reviewed separately from the standard allowance.
• A change to expenses: One-off items, travel, equipment, activities or other agreed costs are not necessarily part of the regular weekly allowance. They may be approved separately and may stop once the relevant expense no longer applies.

The placement agreement and the council’s fostering payment policy are important documents when checking what can change. They should explain the payment categories, any conditions attached to them, how reviews are carried out and who authorises an adjustment. The child’s care plan may also be relevant because it records the arrangements and responsibilities that the allowance is intended to support.

A change should be communicated clearly rather than appearing without an explanation. Ask the fostering service to confirm:

• what part of the payment is changing;
• the reason for the change;
• the date from which the new amount applies;
• whether the change is temporary or ongoing;
• whether any approval, review or evidence is required; and
• how the decision can be queried or reconsidered.

The effective date matters. A revised council-wide rate may apply from the date stated in the policy, while a payment connected to a specific responsibility may begin when that responsibility is formally agreed. If a change is proposed retrospectively, ask the council to explain the basis for doing so and provide a written calculation. Keep copies of payment statements, letters, placement agreements and records of approved expenses so that differences can be checked accurately.

Allowances can also be affected when a placement is ending or when a child temporarily moves to another care arrangement. Whether payment continues during that period depends on the council’s policy and the terms agreed for the placement. Do not assume that the same amount will continue automatically; request confirmation before making financial plans.

If the explanation is unclear or the amount does not match the written terms, raise the issue first with the child’s social worker, supervising social worker or the council’s fostering payments team. A foster carer can ask for the calculation and the policy section used to make the decision. If the matter remains unresolved, the council should explain its complaints or review process. An independent fostering support adviser can also help a carer understand the paperwork and prepare questions for the relevant authority.

Before accepting a placement, prospective foster carers should ask how payment reviews work, whether different arrangements have separate rates, which expenses are reclaimed independently, and how changes are notified. Understanding these rules in advance makes it easier to distinguish a planned policy review from a payment error or a change requiring a new agreement.