Fees and allowances
A guide to finance for foster carers
There's no need to feel uncomfortable asking about the financial side of fostering. We want to reassure you that we're here to help you make fostering work for you, and to help explain how fostering fees and allowances work, so you can make informed choices.
If you'd like a better idea of the financial implications of becoming a foster carer based on your own situation, we can arrange for you to speak to a member of the team.
How much do you get paid for fostering?
Foster carers receive a range of weekly allowances and skills payments
Fostering is a self-employed professional role with responsibilities and the fees and allowances paid by all of the partners within Foster for East Midlands reflect this. Each local authority sets their own payment rates based on Government guidelines, and there are slight differences.
Fees and allowances are broken down into a few categories:
Allowances
Foster carers receive a fostering allowance for each child who stays with them. Fostering allowance is paid per child, per week based on their age. It should cover:
- food and drink
- contribution to utility costs
- clothing
- transport costs
- entertainment, activity and recreational costs
- pocket money
| Age of child | Fostering allowance per week |
|---|---|
| 0-4 | £170 - £179 |
| 5-10 | £187 - £198 |
| 11-15 | £213 - £226 |
| 16-18 and ‘staying put’ | £249 - £274 |
Skills payments
We recognise the effort and time foster carers put into building their knowledge and developing additional skills as fostering professionals. Skills payments are paid in recognition of this experience and training, as well as sometimes the complexity of the support required.
| Skills and experience of foster carer | Skills payment per week |
|---|---|
| Probationary (usually first 12 months of fostering) |
£80 - £100 |
| Established (usually after first 12 months of fostering) |
£125 - £130 |
| Specialist or complex support | £175 - £360 |
Specific allowances
Some local authorities also pay additional fees for a range of different things:
- Essential fostering equipment (furniture, prams etc)
- One-off clothing allowance
- Annual or long-service foster carer bonuses
- Festivities allowances (birthdays, Christmas, holidays etc)
- Mileage payments (for some journeys)
Tax and national insurance for foster carers
The Government applies a generous tax-free allowance to fostering income.
All foster carers in the UK are classed as self-employed. If you become a foster carer you will need to register with HMRC for the role.
To make fostering an affordable choice, the Government applies a generous tax-free allowance to fostering income. In fact, as a foster carer you can expect almost all your fostering income to be exempt from tax thanks to Qualifying Care Relief.
The Government also gives foster carers National Insurance Credits – helping to build state pension entitlement.
You can find further information and an illustration of how this works, on GOV.UK: Help and Support for Foster Parents in England.
Can foster carers claim benefits?
If you claim benefits, these may not be affected when you foster, the exception to this are some universal credits. Contact us for more information.
Get more information about fostering payments, taxes and national insurance
The Department for Education funds Fosterline, which offers confidential and impartial advice.
They can be contacted on Freephone number 0800 040 7675, from 9am to 5pm, Monday to Friday or by visiting the Fosterline website.