Can fostering agency allowance rates change during a placement?

Fostering agency allowance rates may change during a placement, but the reason and process should be clear. A change is not usually something an agency can apply without reference to its allowance policy, the terms agreed with you and the arrangements for that particular child.

Several circumstances can lead to a revised payment:

• A change in the child’s needs: additional supervision, therapeutic support, transport, equipment or other costs may mean that the financial arrangements need reviewing.
• A change in the placement type: moving from short-term to long-term fostering, parent-and-child fostering, emergency care, respite care or another specialist arrangement may involve a different allowance or fee structure.
• A change in the child’s age or circumstances: some agencies use different rates for age bands or review payments when a child’s care plan changes.
• A scheduled policy review: agencies may update their rates or payment arrangements periodically, subject to the terms of their policy and agreements.
• Additional agreed expenditure: one-off or recurring costs may be authorised separately where the standard allowance does not cover an identified need.

The standard allowance and any professional fee should be considered separately. The allowance is intended to contribute towards the costs of caring for the child, while a fee, where one applies, recognises the foster carer’s role and skills. A change to one does not automatically mean that the other will change. Your agency should explain which part of the payment is being amended.

Before accepting a revised arrangement, check the following documents:

• the agency’s allowance or finance policy;
• your fostering agreement;
• the child’s placement agreement or placement plan;
• any written approval for additional expenses or specialist payments; and
• recent payment statements, so you can identify exactly what has changed.

These documents should help establish whether the revision applies to all carers, to a particular type of placement or only to the needs of the child in your care. They should also clarify the effective date, whether the change is temporary or ongoing, and how expenses are claimed.

Ask the agency to confirm the revised calculation in writing before the first affected payment. If the change relates to a new need, request a review of the placement plan as well as the financial arrangement. This creates a clear record and allows everyone involved—including the child’s social worker and the agency’s supervising social worker—to work from the same information.

Payment changes should not leave you unable to meet the child’s reasonable day-to-day needs. Keep receipts and a record of additional costs, particularly for travel, activities, clothing, specialist items and appointments. Some items may need prior approval, so check the claims process rather than assuming that an expense will be reimbursed.

If you believe a change has been applied incorrectly, raise it first with your supervising social worker or the agency’s finance contact. Explain the discrepancy, provide relevant documents and ask for a written response. If the issue is not resolved, use the agency’s formal complaints procedure. You can also ask for independent advice about your rights and responsibilities under the fostering agreement.

When considering an agency, ask how often allowance rates are reviewed, what events can trigger a mid-placement review, how much notice is normally given and what happens if a child’s needs increase unexpectedly. A clear policy should explain the payment structure, additional-cost arrangements, review process and route for challenging a decision. This information helps you assess whether the financial support is understandable and sustainable before you begin fostering.