Payments & Allowances

---

It’s important to know about the financial implications of fostering and what that might mean for you and your family. 

Take a look at our allowances and fees, we offer competitive rates of pay to ensure we recognise the commitment and the skill of our foster carers. 

For many, fostering can offer a rewarding career, providing both flexibility and the chance to do something truly worthwhile.

All our foster carers receive a combined weekly payment direct into their bank account, the payment is split into two parts. 

Please visit HMRC's website for current tax-free allowances for foster carers.

The Department of Education suggests an amount that foster carers are paid to cover all costs associated with caring for a child. At First for Fostering, we will always pay above this recommended amount. A child’s allowance is dependent on their age.

Each child’s allowance covers things such as:– 

· Provision of a bedroom

· Heating/ lighting/ hot water

· Food

· Clothes and shoes

· Travel to school & activities

· Extra-curricular activities

· Travel to contact with birth family or significant people

· Equipment for school/ activities

· School trips

· Hair cuts

· Savings 

· Over the counter medication/ prescriptions

· Any other costs associated with the needs of the child

Being a foster carer is a professional and demanding role and we pay at a rate reflective of the complexity of the needs of each child. Fees also increase with the age of the child. 

All children are individual and will require an bespoke package of care to support their needs.

In the 2023 Spring Budget, the Chancellor announced changes to foster carers allowances. 

Starting from the 2023 to 2024 tax year, foster carers will receive an increased tax relief on their fostering allowance. This will impact both the fixed annual total of Qualifying Care Relief and the weekly amount.

The government also announced that the rates of Qualifying Care Relief will automatically increase each tax year in line with inflation.

Please visit HMRC's website for current tax-free allowances for foster carers.

Qualifying Care Relief is split into two parts:

1. Annual amount

A tax allowance that's deducted from the annual income from fostering.  This is a fixed amount that every foster carer receives as tax relief.

2. Additional weekly amount

An additional amount of tax relief for every week a child is in a foster carer’s care. This is available for each child and the amount received will depend on whether the child is under or over 11 years old.

The Qualifying Care Relief  replaces the old system where foster carers would keep track of all expenses and receipts relating to the care of the child, and submit them as part of their annual tax return.

The increased Qualifying Care Relief provides the following tax relief for foster carers: 

• A fixed amount of £18,140 for the tax year, plus
• Weekly amounts for each child in your care:
  • for each child under 11 years of age - £375
  • for each child 11 years of age or older - £450

Foster carers will soon be able to keep the majority – if not all – of the income they receive.

Foster carers who care for more than one child will benefit the most from these changes.