What financial support is available to foster carers in Worcestershire?

Financial support for foster carers in Worcestershire is usually made up of regular placement payments, help with agreed fostering expenses and, in some circumstances, additional payments linked to a child’s needs or the type of care provided. The exact package depends on whether you foster through Worcestershire County Council or an independent fostering agency, the child’s age and circumstances, and the current payment policy.

What the regular payment is intended to cover

The main fostering payment is designed to contribute towards the everyday costs of caring for a child. This can include food, clothing, toiletries, activities, transport, household bills and a contribution towards replacing or buying items needed for the placement. It is not simply a wage for the foster carer; it is intended to support the child’s care and wellbeing.

Payment arrangements should be explained before approval or before a placement is made. Ask for a current written schedule showing:

• the basic allowance for different age groups;
• whether rates differ for short-term, long-term, emergency, respite or parent-and-child placements;
• how payments change when a child has additional or complex needs;
• when payments begin and end;
• what happens during gaps between placements; and
• which expenses are included and which can be claimed separately.

Additional payments and expenses

Some fostering arrangements provide extra financial support where the care involved requires additional skills, responsibility or availability. There may also be agreed payments or reimbursement for specific costs, such as travel connected with contact arrangements, essential equipment, school-related items, activities or other expenses that have been authorised in advance. These provisions vary, so a foster carer should not assume that a cost will be reimbursed without checking the policy or obtaining approval.

Keep receipts and a simple record of placement-related spending. This makes it easier to discuss unusual costs with the supervising social worker and helps distinguish ordinary household spending from expenses that may be claimed under the fostering agreement.

Tax and benefits

Foster carers may qualify for special tax treatment under HM Revenue and Customs’ qualifying care relief rules. These rules can reduce the amount of fostering income on which tax is due, but the outcome depends on the carer’s circumstances and other income. Fostering payments can also affect benefits differently from ordinary employment income. Anyone receiving Universal Credit or another means-tested benefit should check the current rules with the relevant benefits service and keep the fostering payment information provided by the fostering service.

It is sensible to obtain up-to-date guidance from HMRC or a qualified adviser before making financial decisions. A fostering service can explain the payments it makes, but it cannot determine a carer’s personal tax or benefits position.

Costs before and during approval

There should not normally be a charge simply for enquiring about fostering or completing the assessment. However, prospective carers may still need to plan for practical costs, such as attending training, arranging suitable bedroom furniture, adapting routines or buying equipment once a child is placed. Ask which items the fostering service supplies, funds or expects the carer to provide.

Financial planning should also allow for costs that are not paid at exactly the same time as the expense occurs. Clarify the claims process, required evidence and payment timetable before accepting a placement. If a child’s needs change, ask for a review rather than taking on substantial ongoing costs without discussing them.

Questions to ask a fostering team

• What is the current payment rate for the type of placement being considered?
• Which part is intended for the child’s daily expenses and which part recognises the carer’s skills or commitment?
• Are there separate rates for different ages, sibling groups or levels of need?
• Which travel, contact, clothing, activity and equipment costs can be claimed?
• How are payments handled during holidays, respite or an unplanned ending to a placement?
• How often are payment rates and policies reviewed?
• What records and receipts must be kept?

Before applying, compare the written financial information with your household budget. The payment should support the costs of fostering, but it should not be treated as guaranteed disposable income. A fostering assessment considers whether a household can provide stable care, including whether it can manage financially if circumstances or placement arrangements change. The fostering team can provide the current figures and explain how the arrangements apply to a particular application or placement.