Fostering Allowances

 

Fostering Agency Allowances

 

Independent (Private) Fostering Agency Payments

All foster carers receive an allowance to cover the cost of caring for a child in their home.

For foster carers working on behalf of an Independent Fostering agency this is set by the individual agency.

The fee can be dependent on age however averages £420 a week per child placed.

Local Authority (Council) Fostering Payments

There are National guidelines which recommend basic levels of allowances for foster carers which Local Authorities tend to use. 

Allowances paid by Local Authorities

All payments that a foster carer receives are taken into account when determining whether they need to declare earnings to the tax office. 

The total payments received in a year (or pro-rata) are compared to the exemptions allowed and any difference above this limit should be declared to the tax office, and tax paid through ‘self-assessment.

The national minimum Local Authority allowance rates for 20016/17:

Weekly Rates
Aged0-45-1011-1516+
London £154.30 £175.90 £219.05 £266.01


All fostering allowances paid to foster carers cover:

General household expenses, food, clothing, mileage, school meals and any other items or outings required to look after a foster child. Other allowances are paid to carers for birthdays, holidays and other events special to individual foster children.

The payments take into account the fact that fostering children costs more than caring for birth children.