Do fostering agency allowance rates vary by the child’s age?

The age band assigned to a placement can influence the allowance a foster carer receives, but it is not usually the only factor used to calculate payment. Each fostering agency sets out its own structure, so two agencies may use different age bands, rates and criteria.

Age-related differences generally reflect the changing costs and practical demands of caring for a child or young person. For example, an allowance policy may take account of:

• food, clothing, personal items and everyday living costs;
• equipment and furnishings needed at different stages of childhood;
• transport to school, activities, appointments and contact arrangements;
• educational, social and leisure activities; and
• the level of supervision and support that may be needed.

A younger child may require items such as a cot, pushchair or childproofing, while an older child may have different costs linked to clothing, travel, education, technology or activities. These are general examples rather than a fixed rule: the agency’s policy determines how such costs are reflected in its payments.

Agencies may group children into broad age ranges rather than setting a separate amount for every individual age. The policy should explain which age bands it uses, the allowance attached to each band and whether the age band changes when a child has a birthday. It should also state whether a new rate applies immediately, from the next payment period or following a formal review.

Age is commonly considered alongside the child’s circumstances. An agency may apply a different payment where a placement involves additional responsibilities, specialist care, significant behavioural or emotional needs, therapeutic support, or a higher level of supervision. The child’s assessed needs and the approved placement type may therefore be more important than age alone.

It is also useful to distinguish between the different parts of a fostering payment. A policy may include:

• a maintenance allowance intended to meet the ordinary costs of caring for the child; and
• a professional fee or reward recognising the foster carer’s role, skills and responsibilities.

These elements may be calculated separately, and an age-related change may apply to one part, both parts or neither. Some agencies also use enhanced or specialist rates where the placement requires additional expertise or commitment. The wording of the policy should make clear what the quoted rate includes rather than presenting one total without explanation.

When comparing age-based rates, check whether the figures are weekly or otherwise periodic, whether they apply from the date of placement, and whether expenses are included or paid separately. Ask how the agency deals with school holidays, transport, contact travel, birthdays, holidays, clothing and one-off equipment. Such questions help you understand the real payment arrangements without assuming that a higher age-band rate covers every additional expense.

Before applying, prospective foster carers should ask for the agency’s current allowance policy and discuss how it would apply to the types of placements they may be considered for. A fostering assessment also looks at the household’s ability to care safely and consistently; the allowance should not be treated as a substitute for assessing whether fostering is financially suitable for the household.

Local teams can explain how their age bands operate, what is included in each payment and when a child’s changing age or needs would trigger a review. Become A Foster Family supports enquiries across the West Midlands, including Birmingham, Worcestershire, Staffordshire, Dudley, Sandwell, Herefordshire, Telford, Wolverhampton, Shropshire, Walsall, Warwickshire, Stoke, Solihull, Coventry and Gloucestershire.