What fostering allowance is available in Worcestershire?

Fostering allowance is the financial support paid to help cover the costs of caring for a child or young person in your household. The amount available is set according to factors such as the child’s age, needs, the type of placement and the terms of the fostering organisation. It may include a maintenance element and, where applicable, a professional fee linked to the carer’s skills, experience and responsibilities.

What the allowance is intended to cover

The maintenance part is designed to contribute towards the everyday costs of looking after a child. These can include:

• Food and household essentials
• Clothing, shoes and toiletries
• Bedroom equipment and personal belongings
• Travel to school, contact arrangements, appointments and activities
• Leisure activities, hobbies and outings
• Pocket money and costs associated with birthdays or celebrations
• A reasonable contribution towards household bills

The allowance is not normally treated as a wage for providing childcare. It is intended to support the child’s care, wellbeing and development, so carers need to budget for the placement rather than view the payment as disposable income.

Why payments can differ

There is no single rate that applies to every fostering household. A placement involving a baby, a teenager, siblings or a child with additional physical, emotional or behavioural needs may have different financial requirements. The placement type can also affect the payment, including whether it is short-term, long-term, emergency, respite or a parent-and-child arrangement.

Some fostering organisations also pay a separate fee to recognise the foster carer’s time, responsibilities, training and professional contribution. This is different from the money intended for the child’s day-to-day expenses. The availability and level of any fee depend on the agency’s payment structure and the placement offered.

Additional expenses

Some costs may be considered separately from the regular allowance, subject to the organisation’s policy and prior agreement. Examples can include significant travel, specialist equipment, essential adaptations, particular activities, school-related items or other exceptional expenses connected with a child’s needs. You should ask how these costs are authorised and whether receipts or other records are required.

It is also important to establish how payments work when a child moves into or out of your home, during planned respite, or if you are approved for a particular type of placement but do not currently have a child placed with you. The answer can differ according to your fostering agreement and the organisation responsible for your approval.

Tax and household finances

Foster carers may benefit from special tax rules, including Qualifying Care Relief, which is designed to simplify how fostering income is treated for tax purposes. The rules depend on your circumstances and can change, so do not assume that the full payment will be treated in the same way as ordinary employment income. An adviser or HM Revenue & Customs guidance can help you understand your position.

Before applying, review your existing household budget. Consider regular costs such as food, transport, clothing and activities, as well as less frequent expenses such as furniture, school items and holidays. You should also check how fostering payments could interact with any benefits, tax credits or other income-related support you receive.

What to ask during the application process

• What is the current maintenance allowance for the age and needs of the children likely to be placed?
• Is there a separate professional fee, and what determines whether it is paid?
• Which expenses are included in the regular allowance?
• How are mileage, contact travel, activities, equipment and exceptional costs handled?
• When are payments made, and what happens when a placement changes?
• What financial records should foster carers keep?
• Could fostering affect your tax position or means-tested support?

Become a Foster Family can explain the current payment structure used for your proposed fostering arrangement, what each element is intended to cover and which costs may be considered separately. This gives you the information needed to assess the practical financial side of fostering before you proceed with an application.