Are private foster carers entitled to financial support?

Private foster carers do not normally receive the fostering allowance paid to approved foster carers. Financial arrangements are usually made directly with the child’s parents, who remain responsible for meeting the child’s everyday costs. A local authority can, however, assess whether the child or carer needs practical or financial assistance in order to protect the child’s welfare.

How private fostering payments usually work

Private fostering is a private arrangement rather than a child being placed with an approved foster carer by a local authority or fostering agency. This means there is no standard national allowance for the carer. Parents and carers should discuss the expected costs before the arrangement starts and agree how those costs will be paid.

Costs may include:

• food and ordinary household expenses;
• clothing, toiletries and personal items;
• school supplies, uniforms and educational activities;
• travel to school, appointments and family contact;
• activities, clubs and social opportunities; and
• essential furniture, equipment or changes needed to care for the child safely.

The amount paid, if any, will depend on the child’s needs and the agreement between the adults. It is sensible to record the arrangement in writing, including which costs the parents will pay directly, which costs the carer will meet and how regular payments or reimbursements will be made. Keeping receipts and a simple record of spending can prevent misunderstandings.

Can the local authority provide financial help?

The local authority has duties to consider the child’s welfare and may offer support where it identifies a need. This could include advice, equipment, practical services or financial assistance in appropriate circumstances. Such help is assessed individually and is not the same as an automatic fostering allowance. The carer should ask the social work team handling the private fostering arrangement what support may be available and whether an assessment is needed.

Financial help might be relevant where, for example, the child has additional needs, the arrangement creates unavoidable extra costs, or the parents are unable to meet an essential expense. The local authority will consider the circumstances of the child and household, the nature of the need and the responsibilities of the parents. Support should not be assumed simply because a private fostering arrangement has been notified.

What if the parents cannot or will not pay?

If agreed payments stop, or the cost of caring for the child becomes unmanageable, the carer should raise this promptly with the child’s parents and the local authority. The social work team can consider whether the arrangement remains suitable and whether additional support or another plan is needed. A carer should not end the arrangement suddenly without seeking advice, particularly if doing so would leave the child without safe care.

The local authority may also explore whether the parents can continue to meet their financial responsibilities. Where there is disagreement about money, the adults may need independent legal or welfare advice. A dispute about payment does not remove the carer’s responsibility to share concerns about the child’s safety or wellbeing.

Benefits, tax and other payments

Private foster carers should not assume that the tax treatment or benefits available to approved foster carers automatically apply to them. Eligibility for benefits depends on the carer’s household circumstances, the child’s situation and the type of payment being received. Payments from parents may also have tax implications, depending on their purpose and the overall circumstances.

Before accepting regular payments, check the position with the relevant benefits service, HM Revenue and Customs or a qualified adviser. The local authority can explain its own support arrangements, but it cannot confirm every benefit or tax entitlement. Keep written details of payments and expenses so that accurate information is available if advice or an assessment is needed.

When the financial position changes

The adults should review the arrangement if the child’s needs change, the parents’ financial circumstances alter, the child stays for longer than expected or the carer’s household faces new costs. Any significant change should be shared with the local authority because it may affect the suitability of the arrangement and the support required.

If the local authority takes responsibility for the child as a looked-after child, the arrangement may no longer be treated as ordinary private fostering. Different placement rules and financial arrangements can then apply. The carer should ask the social work team to explain the change rather than relying on the original private agreement.