Fostering payments
Fostering Allowance and Pay Explained
Foster carers receive payments while caring for a child. Part helps meet the child's everyday costs; another part may recognise the carer's time, skills and responsibilities. The exact amount varies. We will explain the full payment package before you accept a placement, including what is included, what may be paid separately and what happens when no child is living with you.
What fostering payments are for
The child's allowance contributes towards the everyday cost of caring for a child or young person in your home.
A professional fee may be paid in recognition of the foster carer's skills, training, experience and responsibilities. We will set out in writing how a payment is divided and what each part is called, so you can see which money is there for the child and which recognises your role.
How much could I receive?
Weekly payments depend on the type of placement, the child's needs and the carer's skills and experience. Use our calculator for an illustration, then speak with us for the current payment schedule and a personalised explanation.
Why amounts differ
Higher needs are never reduced to a headline figure. Where an enhanced payment applies, we will explain both the additional responsibility involved and the support attached to it.
Current payment schedule
Ask our team for the current payment schedule and we will confirm it in writing: the payment levels available, the weekly child allowance and any professional fee within each level, the criteria for reaching a level and the date the rates take effect.
We will also confirm whether rates are paid per child, per placement or per household, and whether payments are made weekly, fortnightly or monthly.
Additional payments and benefits
Depending on agency policy and the placement plan, additional support may be available for school uniform, birthdays, religious festivals, holidays, summer activities, mileage, equipment, introductions or respite.
Ask us which of these apply to a particular placement, how eligibility is decided and whether the support is a payment or a service, before you agree to the placement.
What happens between placements?
Many fostering payments are linked to a child being placed. Plan for periods when no child is living with you, and ask us whether any retainer, fee or support payment applies in your circumstances.
For that reason, fostering payments should not be planned for as a guaranteed annual income.
Tax and National Insurance
Foster carers are generally treated as self-employed for tax purposes and normally need to register with HMRC and file Self Assessment returns. Qualifying Care Relief can mean that some or all fostering income is free of tax, depending on individual circumstances.
Tax rules and thresholds change. Read our dedicated tax page and check current HMRC guidance. Organic Fostering cannot provide personal tax advice.
Fostering and benefits
The effect of fostering income on benefits depends on the benefit and your household circumstances. Do not assume that every fostering payment is ignored. Ask the relevant benefits office or an independent adviser for advice based on your position.
Questions to ask any fostering agency
Use these questions with any fostering agency you are considering, including us.
- Can I see the complete current payment schedule?
- Which costs are expected to come from the weekly allowance?
- Which expenses are reimbursed separately?
- Is there a skills or experience progression scheme?
- What happens if a placement ends unexpectedly?
- Is any payment made between placements?
- How are overpayments or disputed expenses handled?
- What records should I keep for tax?
Talk to us
Get the numbers in writing
We will explain the current rates, what they cover and the factors that may change the amount before you make a decision.
Take the first step
Your fostering questions can start with one conversation
Tell us what you are thinking and ask what matters to you. A member of our Manchester team will explain the next step without pressure or obligation.