How are fostering allowances for teenagers calculated?

Fostering allowances for teenagers are worked out using an age-related rate as a starting point, then adjusted where the young person’s circumstances create additional costs or require a higher level of care. The payment arrangements should be explained by the fostering service before you accept a placement and recorded in the placement agreement.

The main parts of the calculation

• Maintenance allowance: This is intended to cover the everyday costs of caring for a teenager, such as food, household costs, clothing, toiletries, activities and an appropriate amount of pocket money.
• Professional fee: Some fostering services pay a separate fee to recognise the carer’s time, skills and responsibilities. Whether this applies, and how it is calculated, depends on the service and the type of fostering arrangement.
• Additional payments: A teenager may need extra financial support because of their health, disability, education, emotional wellbeing, behaviour, travel requirements or other assessed needs. These payments are considered according to the individual placement rather than being automatically added for every teenager.
• One-off or agreed expenses: There may be separate arrangements for items such as essential equipment, initial clothing, school requirements, activities, travel or other costs that are not reasonably covered by the regular allowance.

Teenagers can have significant and differing costs. For example, one young person may need support with transport to education or contact visits, while another may need specialist clothing, therapeutic activities or additional supervision. The fostering service should discuss these needs with you and explain which costs are included in the regular allowance and which require prior agreement.

Why age is only a starting point

Rates are commonly arranged in age bands because the cost of caring for an older child often differs from that of caring for a younger child. However, age alone does not determine the total payment. A teenager’s daily routine, education, contact arrangements, health needs, independence skills and level of supervision all affect the resources needed to support them safely.

A teenager approaching adulthood may also have different financial needs from a younger teenager. They may need help with travel, further education, work-related clothing, cooking equipment or preparation for living independently. The service should clarify how these planned costs will be supported and whether any additional funding needs to be agreed in advance.

How the assessment usually works

• The social worker and fostering service gather information about the teenager’s needs, routines, risks, relationships, education and likely care arrangements.
• The service considers the standard allowance for the teenager’s age and the type of placement being offered.
• Any additional needs and expected expenses are identified, including transport, contact, activities, equipment and supervision.
• The fostering service explains the maintenance payment, any professional fee and any agreed extras before the placement starts.
• The financial arrangements are recorded in the relevant fostering and placement paperwork and reviewed if the teenager’s circumstances change.

The payment may therefore differ between two teenagers of the same age. It can also change during a placement if there is a substantial change in need, a new assessment, a change in the care arrangement or a move towards independence. A review should not be treated as an automatic increase; the service will assess what is required and explain the decision.

What the allowance is intended to cover

The regular maintenance element is generally intended to contribute to the normal costs of family life, rather than operate as a fixed payment for each individual purchase. This means you may use it across the week and month to meet the teenager’s needs, including meals, clothing, personal items, leisure and ordinary household expenses. The teenager should receive opportunities and living standards that are appropriate to their age and circumstances.

Some costs should be discussed separately instead of assumed to come from the weekly allowance. These can include major equipment, expensive educational requirements, specialist appointments, substantial travel, agreed contact arrangements, holidays or activities with exceptional costs. The exact policy varies, so ask for approval before committing to a significant expense.

Allowance, fee and the teenager’s own money

The fostering allowance is paid to the foster carer to help provide care. It is different from a teenager’s personal allowance, pocket money, earnings, benefits or any money held for them. Foster carers should agree suitable arrangements with the social worker for budgeting, saving, spending money and financial education, taking account of the teenager’s age and capacity.

A professional fee is also different from the maintenance element. The fee reflects the carer’s role and responsibilities, while the maintenance allowance is intended to meet the costs of caring for the young person. The service should make clear whether a quoted figure combines these elements or lists them separately.

Questions to ask before accepting a placement

• What is the regular maintenance allowance for this teenager?
• Is there a separate professional fee, and what conditions apply to it?
• Which costs are included, and which need approval or separate funding?
• How will travel, contact, education, activities, clothing and equipment be paid for?
• What arrangements apply if the teenager’s needs become more complex?
• When and how are payments made, and who should be contacted about an incorrect or delayed payment?
• How often are the rates and the teenager’s financial needs reviewed?

It is sensible to request a written breakdown rather than relying on a general figure. You should understand the expected costs and payment terms before making a decision, and raise any concern with your supervising social worker or the fostering service. Allowances are designed to help you provide appropriate care; they should not be the sole basis for deciding whether a particular placement is suitable for your household.