What financial support is available for fostering to adopt?

Financial support for fostering to adopt is usually made up of payments linked to the fostering placement, with additional adoption-related help considered if the child later moves towards adoption. The support available is not identical in every case: it can depend on whether you foster through an independent fostering agency or a local authority, the child’s assessed needs, the stage reached in the legal process and your own financial circumstances.

Fostering allowance during the placement

While the child is placed with you under fostering arrangements, you will normally receive a fostering allowance. This is intended to contribute towards the practical costs of caring for the child, such as food, clothing, personal items, travel, activities and equipment. It is generally paid for the period in which the child is living with you, subject to the terms of your fostering agreement and the applicable payment policy.

The allowance is not usually the same as a wage. It is important to ask how the payment is calculated, when it is paid, what expenses are included and whether different rates apply according to the child’s age or needs. Some providers may also pay a professional fee to approved foster carers, but this is separate from the allowance and is not available under every arrangement.

Support for additional costs

Fostering to adopt can involve costs that are less common in other fostering situations. These may include travel to contact arrangements, meetings with social workers, legal appointments, specialist equipment, childcare or adaptations needed to make your home suitable. The agreement should explain which costs are covered by the regular allowance and which need to be agreed separately.

Do not assume that an expense will be reimbursed simply because it relates to the placement. Keep receipts and ask the supervising social worker or agency for approval before committing to significant costs. Travel and contact arrangements may be particularly important to clarify because they can change during the assessment and court process.

Adoption-related financial support

If the plan changes from fostering to adoption, a separate assessment may be made for adoption support. Depending on the circumstances, this could include an adoption allowance or help with specific costs. Adoption allowances are not automatic. They may be affected by the child’s needs, available funding, household finances and the legal arrangements for the adoption. They can also be subject to review and conditions.

Adoption support can include help that is not paid directly to you. For example, an assessment may identify a need for therapeutic services, specialist advice or other support for the child and family. In England, eligible adoptive families may be considered for help through the Adoption Support Fund, but access depends on an assessment and the relevant local arrangements. It should not be treated as a guaranteed cash payment.

Tax and benefits

Fostering payments have specific tax rules, including qualifying care relief for eligible foster carers. The way the payments affect your tax position depends on your circumstances and the nature of the placement. Adoption-related payments may be treated differently, so keep clear records and obtain current advice from HM Revenue and Customs or a suitably qualified adviser.

Your fostering or adoption payments may also interact with means-tested benefits, council tax support, housing costs or other household income. Tell the relevant benefits office about changes when required and ask how fostering to adopt will be assessed. A payment that is disregarded for one purpose may not be treated in the same way for another.

Questions to ask before accepting a placement

• What fostering allowance would apply, and what costs is it intended to cover?
• Is a professional fee paid in addition to the allowance?
• How are travel, contact, childcare, equipment and exceptional expenses authorised?
• What happens to payments if the child returns to birth family, moves elsewhere or becomes subject to an adoption order?
• Could an adoption allowance be considered later, and what assessment would be required?
• How will the payments be treated for tax and benefits purposes?
• Who should you contact if the child’s needs create costs that the original agreement did not cover?

Before applying, request the current payment policy and ask for any proposed figures and conditions to be explained in writing. Become a Foster Family can help you understand the difference between fostering payments and adoption support, identify the questions relevant to your circumstances and explain what information you may need when discussing a fostering to adopt application.