Foster Care Pay and Allowances
We are fully in support of the idea of professional foster carers. As such, we offer a professional package of support and financial benefits. This is why we are one of the best fostering agencies in the North West. We believe that we should be open and transparent about the foster care pay and allowances available.
Fostering Allowance and Payments
We offer generous fostering allowances which take into account the demands of looking after a foster child. Our foster care pay is regularly reviewed to ensure we are providing enough to cover the costs of caring for children.
You can expect to receive the following weekly allowances per child:
- £450 per week for the first child in placement (If over 5. Solo or enhanced placements get paid up to £550 per week).
- £370 per week for subsequent children in placement, i.e. for your second and third child
- In total it might get up to about £1,200 per week for 3 children in placement
What is the Allowance for?
Your fostering allowance will be split into two parts. A portion of the foster care pay is to cover the cost of looking after a child. The second portion is the professional element which is a recognition of your hard work as a foster carer.
The child element varies in amounts dependent on the age of the child you are looking after, but it would cover things like:
- Leisure activities
- Pocket money
Additional Support Foster Care Pay
If you are a foster carer for a child that needs more skilled support, you will receive an additional allowance. This might help to cover the cost of doctor or hospital visits.
Do I Get An Allowance for Christmas and Birthdays?
We understand that foster parents want to make sure their child in placement has an enjoyable birthday and Christmas. We also know that buying presents can be expensive. For this reason, a proportion of the weekly payment paid is specically for the child’s birthday, Christmas and other religious festivals to cover the cost of extra expenses. These are paid on a weekly basis and you are asked to save up and budget accordingly (as you might for your own birth children).
Do Foster Carers pay tax?
Foster carers are classed as self-employed so you will be responsible for your own tax arrangement. There are tax breaks for foster carers to allow them to retain more of their income to help care for the child or children.
In addition to your personal tax allowance of £11,500, you will also have an additional tax allowance of £10,000. In addition to this, you will have a further weekly tax allowance for every child in your care.
- For example, if you are fostering a child under the age of 11, you would have a tax-free allowance of up to £31,900.
This is just an example and your actual tax situation will depend on your personal circumstances. There are many variables that can change your personal tax situation so you will need to check with the HMRC. As you are self-employed you will also need to complete a tax return each year. We can provide advice and guidance on how to manage your own tax return.