Are allowances different when fostering siblings together?

Fostering siblings together does not usually create a separate allowance rate simply because the children are related. Allowances are generally agreed for each child, with the total reflecting the number of children placed and the individual arrangements made for their care. The precise payment depends on the fostering agency or local authority responsible for the placement, as well as the children’s ages, needs and circumstances.

When siblings are placed together, the allowance for each child should be considered separately. Their ages may differ, and one child may need additional support, equipment, transport or activities. The placement plan should set out the practical arrangements and identify any extra costs that need to be covered. These costs might include:

• clothing, school items and personal belongings for each child;
• food and everyday household expenses;
• travel to school, contact visits, appointments and activities;
• bedroom furniture or other essential equipment;
• activities that help each child maintain interests and friendships; and
• specialist items or services linked to an assessed need.

Some costs are ongoing and are normally reflected in the regular fostering allowance. Other expenses may be agreed separately, particularly where they arise from a child’s specific needs or from an unusual part of the placement. It is important not to assume that every additional expense will be paid automatically. Ask for the payment arrangements to be explained before agreeing to the placement, and check what receipts or prior approval may be required.

Allowances are different from a fostering fee. An allowance is intended to help meet the costs of caring for a child. A fee, where applicable, recognises the foster carer’s role, skills and availability for fostering. Whether a fee is paid, how it is calculated and whether it changes for a sibling placement will depend on the agency’s policy and the terms of the foster carer’s agreement. These two elements should be explained separately so that you understand what each payment is for.

The financial assessment should also take account of the placement as a whole. Caring for two or more children can affect household spending, travel, space, food costs and the amount of time needed for appointments and contact arrangements. A thorough assessment helps the agency consider whether the proposed placement is suitable and whether the financial arrangements properly reflect the care required. An allowance should not be the only factor when deciding whether a sibling placement is right for your household.

Payments can be reviewed if a child’s circumstances change, if their needs become clearer after moving in, or if the agreed placement arrangements are amended. Keep records of significant costs and raise concerns with your supervising social worker rather than meeting substantial additional expenses without clarification. The child’s social worker and the agency should be involved when an increase in support or a change to the placement plan is needed.

Tax treatment can also depend on your circumstances and the current rules for foster carers. Your fostering agency should provide information about the financial and tax guidance relevant to its scheme, but you may wish to obtain independent tax advice before making decisions based on expected income.

Before siblings move in, ask the agency to confirm in writing:

• the allowance agreed for each child;
• whether any fee is payable in addition to the allowances;
• which items and expenses are included in the regular payment;
• how exceptional or one-off costs are requested and approved;
• how payments are handled if one sibling’s needs differ from the other’s; and
• when the arrangements will be reviewed.

This gives you a clear picture of the financial support attached to the proposed placement and helps avoid confusion once the children are living with you. The final figures and conditions should always come from the agency or local authority making the placement, because fostering allowances are not identical across every scheme.