Who approves special fostering payments before a placement begins?

Approval normally sits with the fostering service’s delegated decision-maker, such as an authorised fostering manager, placements manager or finance lead. Where the payment is linked to a particular child’s needs, the child’s placing local authority will usually also need to agree the arrangement because it is often responsible for commissioning and funding the placement.

The precise route depends on the fostering service’s financial scheme of delegation and the type of payment being requested. A supervising social worker or placement officer may identify the need and prepare the request, but they may not have authority to approve additional funding themselves. The request is commonly reviewed by a manager with responsibility for placements, fostering finances or both. Higher-value, unusual or potentially long-term arrangements may require approval from a senior manager, panel, a commissioning team or another officer specified by the local authority.

Approval is based on the circumstances of the proposed placement rather than simply on a carer’s request. The decision-maker may consider:

• the child’s assessed needs and level of risk;
• whether the placement is likely to require additional supervision, equipment, transport or support;
• the foster carer’s experience, skills and approved terms;
• the effect of the placement on other children in the household;
• the expected length and stability of the placement;
• the standard fostering allowance and any other funding already available; and
• whether the proposed payment represents a proportionate use of public funds.

The child’s social worker and placing authority usually provide information about the child’s needs. The fostering service then considers whether the proposed payment is justified and what conditions should apply. This can involve discussion between the carer’s supervising social worker, the fostering service’s placements team and the local authority’s commissioning or finance officers. Agreement may be recorded through a placement plan, funding authorisation, written variation or another formal document used by the organisations involved.

A proper approval should identify more than an overall figure. It should state the amount or method of calculation, who will make the payment, when it will start, how long it is expected to continue and what circumstances could lead to review. It should also make clear whether the payment is made to the fostering service or directly to the foster carer, and whether it is separate from the usual fostering allowance. These details help prevent uncertainty about deductions, payment dates and the end of the arrangement.

Some decisions are made before a proposed match is confirmed, while others are completed as part of the placement planning process. The important point is that the financial agreement should be settled and recorded before the child moves in wherever practicable. If an urgent placement leaves insufficient time for the full approval route, the service should explain who has given interim authorisation and how the decision will be formally confirmed.

Approval is not necessarily permanent. A special payment may be reviewed if the child’s needs change, if the placement becomes more or less demanding, if additional services are introduced, or if the placement ends. Any change should be communicated clearly and documented. A reduction or withdrawal should not be assumed merely because the placement has continued for a period; the relevant policy and the agreed review arrangements should be followed.

Prospective and approved foster carers can reasonably ask for the decision in writing. Useful questions include:

• Who has authorised the payment?
• Which organisation is responsible for funding it?
• What evidence or assessment supports the decision?
• Is the amount additional to the standard allowance?
• When will it be paid and who will receive it?
• How long will the approval last?
• When will it be reviewed?
• What happens if the placement changes or ends?
• How can the decision be challenged or reconsidered?

If the proposed payment has not been confirmed, the foster carer should raise this with the supervising social worker or fostering service before accepting the placement, rather than relying on a verbal assurance. Where the local authority is funding the arrangement, the carer can also ask for confirmation that the authority has authorised the agreed terms. If the parties cannot agree, the fostering service’s complaints or review procedure, the local authority’s escalation process, or independent advice may be relevant.