How are council fostering allowance rates assessed?

Council fostering allowance rates are usually worked out through a local payment framework. This framework sets a basic amount for meeting a child’s everyday needs, then identifies circumstances that may require additional support. The assessment is intended to establish a realistic allowance for caring for a particular child, rather than being a payment based on the foster carer’s employment or household income.

When setting its framework, a council will commonly consider:

• The child’s age and stage of development: older children may have different clothing, food, travel, education and activity costs from younger children.
• Ordinary household expenses: this can include food, clothing, toiletries, heating, household use, pocket money and suitable activities.
• Additional needs: disability-related equipment, specialist diets, personal care, transport, health appointments or support with communication may need to be considered separately from standard costs.
• The type of placement: arrangements such as emergency, short-term, long-term, parent and child, or therapeutic placements may involve different practical demands.
• The number of children placed together: caring for siblings or several children can affect space, transport, supervision, meals and other household costs.
• Local living costs: councils may use local information about prices, travel and services when reviewing their rates.

The starting point is normally the council’s core maintenance allowance. In England, councils must also have regard to national minimum expectations when developing their fostering payments. This does not mean that every council pays the same amount: local policies determine how the baseline is applied and whether particular circumstances attract extra payments.

It is important to separate the allowance from any professional fee. The allowance is intended to contribute towards the costs of caring for the child. A fee, where offered, recognises the foster carer’s time, skills and responsibilities. Some council schemes include a fee or tiered payment structure, while others may use a different arrangement. The written terms should make clear which part is maintenance and which part, if any, is a fee.

For a child with more complex needs, the council should explain how additional costs are identified and authorised. Depending on the local policy, this may involve information from the child’s social worker, education or health professionals, the placement plan, or a discussion with the fostering household. Extra support may be agreed before a placement starts or reviewed once the child’s needs are better understood. It should not be assumed that every additional expense is automatically included in the standard rate.

Rates are also considered alongside the practical arrangements for the placement. For example, the assessment may need to account for travel to school or contact, specialist appointments, essential equipment, activities, or changes in the child’s circumstances. The precise treatment of these items varies, so a foster carer should ask whether they are included in the core allowance, paid as an additional item, or considered through a separate approval process.

A council’s fostering allowance policy should explain:

• the core rate for each relevant age group or placement category;
• how additional needs and exceptional costs are assessed;
• whether fees are available and how they are calculated;
• which expenses require prior agreement or receipts;
• how payments are affected by changes to a placement; and
• when the payment framework is reviewed.

The financial assessment of a placement is separate from the assessment of whether someone can become a foster carer. During the fostering application, the service will examine suitability, household circumstances, skills, training needs and safeguarding information. That process determines approval and the types of placements that may be suitable; it does not guarantee a particular allowance rate. The payment is then applied in line with the council’s policy and the child’s agreed placement arrangements.

Before accepting a placement, prospective foster carers should request a written breakdown of the proposed payments. Ask specifically what the basic allowance covers, whether a fee is included, how additional needs will be funded, and who must approve extra costs. Comparing the written placement information with the council’s published policy can help identify what is standard, what is child-specific and what may be reviewed later.