Fostering is a rewarding experience, both emotionally and financially, for those who care for vulnerable children. But many prospective foster carers ask, “What do you get for fostering?” Apart from the huge sense of satisfaction foster carers get, there are various financial supports and allowances to help foster parents with the practical side of fostering.
In this one, we’ll look at what foster carers get in terms of financial benefits, allowances, and tax relief, and the support available to help you on your fostering journey. For further information, visit St Davids Fostering service.
What You Get for Fostering: Allowances and Payments
One of the most common questions asked by potential foster carers is: “Do foster parents get paid?” The answer is yes—foster carers get a fostering allowance to cover the cost of looking after a foster child. The allowance helps with everyday things like food, clothing, and transport. The weekly fostering allowance paid to foster carers varies depending on the child’s needs, where you live, and the fostering agency or local authority you work with. Local authorities set allowances differently to private foster agencies, with independent agencies often paying more.
Foster carers also get foster care payments for their time and commitment. This can include a professional fee for more experienced or specialist placements. These fostering payments and allowances mean foster carers are financially supported while fostering.
And there are tax relief benefits for foster carers who care for children, with extra financial support for those caring for children under and over 11.
Fostering Allowances
Fostering allowances are a big part of the fostering process, providing financial support to foster carers to care for children. These allowances are meant to cover the full cost of caring for a child, including essentials like food, clothing, transport, and extra utility bills like gas and electric. Beyond the basic allowance, foster carers may get extra payments for specific needs. For example, therapeutic placements or parent and child placements often come with extra financial support to help with the challenges they bring. This means foster carers have the resources they need to provide a stable and nurturing environment for their foster children.
Types of Fostering Placements
There are several types of fostering placements, each with its own requirements and challenges. These include:
- Standard Placements: The most common type of placement, where a foster carer looks after a child full-time. These placements involve meeting the child’s everyday needs and providing a stable home.
- Therapeutic Placements: These placements require foster carers to provide specialist care and support for children with emotional or behavioural needs. Foster carers in these placements often get extra training and support to help them manage the challenges these children bring.
- Parent and Child Placements: In these placements, foster carers care for a parent and their child, supporting the parent to develop their parenting skills. This type of placement aims to keep families together and support the parent to become more independent.
- Respite Placements: These short-term placements provide temporary care for children, giving their regular foster carers a break. Respite placements are important to prevent burnout and ensure long-term foster carers can continue to provide high-quality care.
Fostering Allowance Rates
Fostering allowance rates vary depending on the type of placement, the child’s age and needs, and the foster carer’s circumstances. On average, foster carers can earn up to £43,680 per child per year, but this can vary depending on the placement. Here are some examples of fostering allowance rates:
- Standard Placements: £440 per week.
- Therapeutic Placements: Up to £650 per week, to reflect the extra support and care needed.
- Parent and Child Placements: £840 per week, due to the dual nature of the care.
These rates mean foster carers are paid for their time, effort, and the extra costs of different types of placements.
Fostering Pay Scale and Allowances
Foster carers are paid according to the fostering pay scale, which takes into account the level of care required, whether it’s therapeutic foster care, and whether you’re caring for specialist therapeutic placements. These types of placements require extra skills and may have higher fostering allowances to compensate for the extra time and effort.
For most foster carers, the weekly fostering allowance varies from £150 to £300 per week, depending on the fostering placements and the child’s needs. Some foster carers, particularly those providing specialist therapeutic placements, get a higher allowance to reflect the extra support needed for the young person’s life.
Foster Carers and Tax
One of the key financial aspects of fostering is how foster carers pay tax. Foster carers are self-employed for tax purposes, and there’s a special system in place to stop them from being over-taxed on their fostering income. Most foster carers can claim qualifying care relief, which is a fixed tax exemption for fostering income, so much of what you get through fostering is tax-free.
Under the qualifying care relief scheme, foster carers get a fixed allowance of £10,000 per year, plus an extra weekly allowance for each foster child in their care. This weekly allowance is £200 to £250 per child, depending on the child placements and the child’s age. So, for many foster carers, much of their fostering income is tax-free.
National Insurance Contributions
As foster carers are self-employed, they also need to register as self-employed and pay National Insurance. But because of the special tax allowance foster carers get, many don’t have to pay large sums. In fact, foster carers only need to pay National Insurance if their taxable income (after care relief) exceeds a certain threshold.
Foster carers need to keep on top of their tax by submitting an annual tax return form each year. The tax allowance and care relief mean fostering is financially viable for most carers.
Financial Support for Foster Carers
Foster carers also get other financial support beyond the fostering allowance. In some cases, you may get respite payments if you take a short break from fostering, and there’s often extra financial help for attending training or caring for children with complex needs.
Extra Costs and Expenses
In addition to the fostering allowance, foster carers may incur extra costs and expenses. These can include:
- Travel Costs: Foster carers may need to travel to attend meetings, training sessions, or to take children to appointments. These travel costs can add up but are often reimbursable through the fostering agency or local authority.
- Equipment Costs: Caring for children requires specific equipment, such as car seats, baby gear, or educational materials. Foster carers may need to buy these items to meet the needs of the children in their care.
- Home Modifications: Sometimes, foster carers need to make changes to their homes to accommodate children with specific needs. This could be installing safety features or making the home more accessible.
Foster carers can claim these expenses back through their fostering agency or local authority, so they’re not out of pocket for the extra costs of providing good care.
Claiming Benefits whilst Fostering
Foster carers can also claim certain state benefits whilst fostering, including Child Tax Credit or Universal Credit, depending on their individual circumstances. But the fostering allowance you get may affect the amount of benefits you can claim. For example, foster carers’ earnings are taken into account when calculating benefit entitlements, but foster parents get benefits in a way that takes into account their unique financial situation.
In many cases, foster carers get both fostering allowance and some state benefits, but it’s always best to speak to a financial advisor or your fostering agency to find out exactly how your benefits will be affected.
Specialist Support and Financial Benefits
As well as financial allowance, foster carers get various forms of practical support to help them with caring for a child. Foster carers are supported by a team of professionals, including social workers and clinical support specialists, who are with them throughout the fostering journey.
For carers providing specialist therapeutic placements, there may be extra support to help them accommodate the specialist therapeutic placements and manage the unique needs of the children in their care. This support can make all the difference in foster carers being able to provide a safe and nurturing environment for foster children.
Foster Carers and Tax Relief
The tax relief for foster carers means many of their fostering payments are tax-free. The care relief system means foster carers get a reasonable financial reward for their work without being heavily taxed. In some cases, foster carers can claim extra tax relief depending on the complexity of the placement and the number of children in their care.
Foster Carers Pay: How Much Do Foster Parents Get?
So, how much do foster parents get paid? This will depend on various factors, including the child’s needs, the type of placement, and whether you’re working for a local authority or an independent fostering agency. Foster parents get between £150 and £450 per week depending on these factors. Plus, many foster parents get tax relief, allowances, and other financial support, so the overall package can be very rewarding.
The financial benefits and fostering pay mean foster carers can provide the best possible care for foster children. Whether you’re providing short-term respite care or a long-term placement, the financial support means you have everything you need to care for children and young people.
Working and Fostering
Many foster carers work whilst fostering, although this can be tough. Balancing work commitments with fostering responsibilities requires careful planning and flexibility. But many foster carers find working and fostering to be rewarding and enjoyable.
Foster carers who work may be eligible for benefits like Child Tax Credit or Working Tax Credit, although these benefits may be affected by their fostering allowance. It’s best to speak to your fostering agency or local authority to find out how your benefits will be affected.
As for National Insurance contributions, foster carers are self-employed and must pay their own National Insurance. However, foster carers may be eligible for National Insurance credits, which can help them build up their state pension.
Overall, fostering can be rewarding and tough. Foster carers should think carefully about their financial situation and work commitments before they start fostering so they can provide the best possible care for the children in their home.
Ongoing Support for Foster Carers
For existing carers, fostering provides ongoing financial support to help with the day-to-day costs of caring for children. Whether you’re caring for two children or more, fostering allowances are adjusted so you get the right level of financial support for each child.
Fostering also provides job security, as there’s always a demand for dedicated foster carers to provide homes for vulnerable children. So, fostering is not only emotionally rewarding but financially sustainable in the long term.
Summary: The Financial Benefits of Fostering
Fostering is about more than just financial support—it’s about changing a young person’s life. But foster carers need financial support to be able to focus on providing the best care.
With foster care payments, tax relief, National Insurance contributions, and state benefits, foster carers can foster without worrying about their own financial security. Whether you’re a new foster parent or have been fostering for years, the allowances, payments, and tax exemptions mean fostering is an option for many.
