How much are foster carers paid and are there other benefits?

We believe that foster families need a healthy income to be successful.  As a result, we believe in paying our foster families well and have some of the best fees and allowance in the sector.  We know families don’t foster for financial gain, but having enough to provide well for a child is very important.

Foster parents are self-employed.  Payments to our foster parents consist of two elements: an allowance for meeting the needs of the child or young person and a fee in recognition of the professional task.

• This is paid for each child or young person whilst they are living with you. It can rise for children with more complex needs.

• We also provide foster parents with 14 days planned breaks during a full year, which can be paid if not used.

• We also provide all foster parents with membership of Fostering Network

• We provide foster households with membership of Perkbox, providing a wide range of health and wellbeing benefits, plus hundreds of retail discounts.

Here are our current fees and allowances:

Please note, we consider all our fostering services to be therapeutic based on our preparation, assessment, support, and training. We do provide services which have additional support structures to the family and are more demanding.  As a result, this is reflected in the fee.  We actively avoid words such as ‘standard’ and ‘enhanced’.

Rates for defined ‘solo’ arrangements are where the Local Authority require only one child to live with a foster family, despite capacity for others. Children’s needs vary, and we sometimes make other bespoke agreements to promote the wellbeing of the family. In all cases these are dependent on the Local Authorities’ agreement and funding.

Will the fostering allowance affect my benefits?

Being a foster parent can affect the benefits you get. If you’re claiming benefits, you’ll need to tell the organisation that pays you that you’re also getting a foster care allowance.

Use a benefits calculator to check what benefits you’re eligible for.

For more help on how your benefits may change you can get free fostering advice from Fosterline

Will I be taxed on fostering payments (fees and allowances)?

Tax exemption

In a tax year, households do not pay tax on the first £18,140 they earn from fostering. You’ll still pay tax on money you earn from a job or investment.

Tax relief

On top of the £18,140 exemption, you also get tax relief for every week (or part week) that a child is in your care. This means you do not have to pay tax on some of your earnings over £18,140.

Age of child Tax relief

Under 11 £375 per child

11 or over £450 per child

Example

Laura is a foster carer for a 14-year-old for the whole of the year and for an 8-year-old for 10 weeks of the year. She does not have to pay tax on the first £45,290 she earns from fostering:

Tax exemption = £18,140 + Child 1 (52 x £450) = £32,400 + Child 2 (10 x £375) = £3,750

Total = £45,290

You’ll need to declare all payments in your self-assessment tax return. Foster carers are classed as self-employed, and you must register with your local office.

Foster carers are paid fees & allowances for each child placed with them.

Please see more at Gov.UK