ALL ABOUT FOSTERING
money & finance
Fostering payments are there to help with the costs of caring for a child and also in recognition of the work our foster carers do every day.
“What’s the difference between fostering fees and allowances?”
Fostering payments are sometimes referred to as fees or allowances but there is a difference…
An allowance is the sum that’s paid to our foster carers to help towards the cost of food, clothing, everyday travel and household bills for the child placed with you. The fostering fee is the reward element of the payment recognising foster care as a valued and respected career.
“How much fostering payment will I receive?”
The allowance paid ranges from £16,900 pa for a small child aged 0-4, up to £22,360 pa for a young person 16-18 years old.
Sometimes this may be more for children with challenging behaviour or special needs. In short, the amount of financial support offered to foster carers varies depending on the needs of the child, for example as foster carers you will also be entitled to claim DLA for the child you care for if they meet the criteria. In addition, individual placement fees can vary on the extent of support which is needed and this is negotiated with the Local Authority.
“Are Foster Carers entitled to any Tax relief?”
Foster carers are classed as self-employed but receive very favourable tax relief, meaning that they often pay very little (if any) tax. We will advise and support you on this issue.
Annual Training bonus
We believe that it is paramount for foster carers to continually seek to improve their knowledge and understanding of the fostering task and the specific needs of Looked After Young People. Therefore, we offer an annual incentive for fostering households who demonstrate commitment to their ongoing learning and development. This payment is applicable to carers who have been approved and caring for 12 months or more.
Long term placement bonus
We place great value upon placement stability and the commitment that foster carers make to young people, often supporting young people from a young age through to adulthood or for long and significant periods of their childhoods. Therefore we will reward foster carers on an annual basis for their commitment to young people.
To find out more information you can visit the Gov.uk website