What allowance is available for a first foster placement?

A fostering allowance is a regular payment intended to contribute towards the day-to-day costs of caring for a child or young person in your household. For a first placement, the exact amount and payment arrangements are explained during your preparation, so you know what financial support applies before the placement begins.

What the allowance is intended to cover

The allowance helps meet the ordinary costs associated with caring for a child, such as food, clothing, personal items, household bills, travel and activities. It should be used to support the child’s welfare and help them take part in everyday family life. The costs may differ from one placement to another, so it is sensible to discuss how the allowance should be managed for the particular child in your care.

Why the amount can differ

The payment for a first placement is not necessarily the same in every situation. Factors considered may include:

• the child’s age and individual circumstances;
• the type and expected duration of the placement;
• the level of care, supervision or practical support the child needs;
• any agreed expenses connected with education, transport, clothing, activities or contact arrangements; and
• the terms of your approval and the specific placement plan.

Your fostering team will set out which elements are included in the standard allowance and whether additional expenditure needs to be agreed separately. Do not rely on a general figure from another foster carer or an older online source, as arrangements can vary and financial information may change.

What you should clarify before accepting a placement

Before your first placement starts, ask for a clear explanation of the proposed allowance and how it will be paid. Important points include the payment schedule, the date payments begin, how the allowance is adjusted if a child arrives or leaves part-way through a payment period, and which costs require prior agreement or receipts.

It is also useful to ask how the arrangement deals with costs such as school uniform, equipment, travel to appointments, hobbies, birthdays, holidays and contact with family members. Keep records of agreed spending and retain receipts where requested. This gives you a practical way to monitor the child’s needs and raise questions if costs change.

Allowance and other financial support

The fostering allowance is separate from the wider guidance and practical support involved in becoming a foster carer. Your preparation should explain whether any other payments, expenses or support may apply to your circumstances. An allowance should not be treated as a guaranteed income or used to make assumptions about the financial impact of every placement.

Fostering payments can also have tax implications. Your fostering team can explain the information available to you, but you should obtain independent tax advice if you need advice about your own income, employment or household finances.

Planning your household budget

Before a child is placed, consider the likely everyday costs alongside your existing household commitments. Plan for regular expenses as well as occasional items, and check whether your home, vehicle and insurance arrangements are suitable for the child’s needs. If circumstances change during the placement, raise the issue with your supervising team rather than covering unexpected costs without checking what support is available.

The allowance and related financial arrangements should be explained as part of your preparation for fostering. If anything is unclear, ask for the details in writing and discuss the child’s individual needs with the fostering team before agreeing to your first placement.