What costs are covered by council fostering allowances?

Council fostering allowances are usually intended to meet the child’s ordinary day-to-day living costs while they are in your care. They are not a general household income or an unrestricted payment, so the fostering service should explain which expenses are expected to come from the allowance and which may be funded separately.

The allowance is commonly used for:

• regular personal care and household items the child needs as part of daily life;
• pocket money, where this forms part of the household’s agreed approach to money management;
• birthdays, religious festivals and other occasions, depending on the council’s policy;
• school trips, clubs, hobbies and leisure activities where these are considered appropriate for the child;
• telephone, internet or other communication costs where these are needed to maintain safe and appropriate contact;
• replacement items when a child’s needs or circumstances change; and
• ordinary costs connected with helping the child take part in family life.

Some costs may be treated differently from the main allowance. For example, approved travel for contact arrangements, medical appointments, meetings or education may be reimbursed separately rather than being paid from the weekly maintenance amount. A council may also have additional arrangements for larger one-off expenses, such as essential equipment, school uniform, activity fees, holidays or items needed when a child first moves in. These payments are not automatic across every fostering service and may require prior approval or receipts.

What determines whether a cost is covered? The key factors are the child’s assessed needs, the type of placement, the council’s financial policy and whether the expense is routine or exceptional. A child with additional health, mobility, educational or emotional needs may require spending beyond the standard allowance. The fostering service should tell you how those needs are funded and who is responsible for agreeing extra expenditure.

The allowance may therefore cover the expected cost of maintaining a child, but it does not necessarily cover every expense that arises during a placement. Costs that are personal to the foster carer, unrelated to the child’s care or outside the agreed placement plan may not be payable. You should not assume that a substantial purchase, specialist service or unusual journey will be reimbursed simply because it benefits the child; check the process first.

It is also important to distinguish between different types of payment. The maintenance element is intended for the child’s everyday needs. Some fostering arrangements may include a separate professional fee for the carer, while additional payments may be available for specific tasks, skills or exceptional circumstances. These elements should be shown separately in the information provided by the council or fostering service.

Before accepting a placement, ask for a written explanation covering:

• the expenses the standard allowance is expected to meet;
• which costs can be claimed separately;
• whether approval is needed before spending;
• what evidence, such as receipts or mileage records, must be kept;
• how essential equipment and initial clothing or belongings are funded;
• how costs for activities, celebrations and education are handled; and
• who to contact when the child’s needs create additional expenditure.

Keep records of agreed additional costs and retain receipts where the policy requires them. If the child’s circumstances change, raise the financial impact with your supervising social worker rather than trying to absorb ongoing costs into the ordinary allowance. The appropriate support may depend on a new assessment or a separate approval.

There is no single national list that determines every expense a council allowance must cover in exactly the same way. When comparing fostering information, look beyond the headline allowance and read the accompanying policy on extra costs, claims and approvals. That will give you a more accurate picture of the financial arrangements for a particular placement.