How do foster to adopt payments differ from adoption allowance?

The main difference is that foster to adopt payments are linked to the child’s placement and the foster carer’s duties, whereas an adoption allowance is considered in light of the child’s longer-term adoption needs and the adoptive family’s circumstances. The two financial arrangements are assessed separately, and one does not create an automatic entitlement to the other.

Foster to adopt payments are made while the child is placed under fostering legislation. During this stage, the carers remain foster carers, even where the plan is for them to apply for an adoption order. The payment is intended to contribute towards the costs of caring for the child and recognises the responsibilities attached to the fostering placement. The relevant fostering service sets out the applicable allowance, payment structure and conditions.

These payments are generally connected to the placement rather than to the family’s ability to pay. The amount may depend on the fostering service’s policy, the child’s age or needs, and whether any enhanced support has been agreed. A foster carer should receive a clear explanation of the payment arrangements before or when the placement begins, including what happens if the child’s legal status changes.

An adoption allowance is considered after adoption has become the relevant legal and care-planning framework. It may be offered where financial support is needed to help secure or maintain an adoption placement, meet particular needs arising from the child’s background or development, or contribute to specified adoption-related costs. It is not a standard payment made to every adoptive family.

When an adoption allowance is considered, the assessment can take account of matters such as:

• the child’s needs, including any additional support or services they may require;
• the circumstances that led to the child needing adoption;
• the family’s financial position and reasonable commitments;
• the costs associated with caring for the child; and
• other financial help or benefits available to the family.

This means an adoption allowance may be means tested or otherwise adjusted following an individual assessment. The outcome can be a regular payment, a contribution towards a specific cost, or no allowance where the assessment does not identify a need for financial support. Any proposed payment should be explained in writing, including how it will be reviewed and the circumstances in which it may change or end.

The timing also differs. Foster to adopt payments apply during the fostering period, before an adoption order is made. Once an adoption order is granted, the fostering arrangement ends and the fostering payment normally no longer provides the basis for financial support. The family must then rely on the adoption support arrangements that have been agreed, which may include an adoption allowance if they qualify for one.

There can also be differences in who makes the payment and which rules apply. Foster to adopt allowances are administered through the fostering service responsible for the placement. Adoption financial support is arranged through the relevant adoption or local authority service under adoption support procedures. The responsible authority should identify the correct process and explain whether a separate application, financial assessment or review is required.

Families considering a foster to adopt placement should therefore ask for both arrangements to be explained separately. Important questions include whether the fostering payment changes when the plan moves towards adoption, when an adoption allowance assessment will take place, what evidence is required, and whether support for childcare, equipment or other identified needs is dealt with under a different arrangement. Keeping written records of the agreed terms can prevent confusion when the child’s legal status changes.