Thinking About Fostering
Understand the detailed breakdown of Fostering Allowance
Looked after children and young people have many different needs and complexities. Family First Fostering carers receive a weekly payment which reflects the needs of the child or young person they are caring for. Payment rates start from £400 per week per child. For complex needs placements the fee can go up to £850 per week per child. Foster carers are entitled to a tax free income up to a certain amount and will have to declare themselves as self-employed. Further advice can be provided by the office on this matter.
What is the payment for?
The foster carer payment is in place to ensure there is no financial implication to the foster carer in regard to the care of the child, so the only investment foster carers need to make is that of time, love, and support.
There is an allowance element and reward element to the fee. The allowance element covers daily and living costs to care for a child or young person, this includes but not limited to:
- Pocket money
- Outings and activities
- Holiday costs
The reward element enables foster carers to be paid for their work because fostering is a professional career. The reward element is the income for the foster carer.
You will receive a yearly statement outlining your fostering income every year.
Insurance and Foster Care
It is your responsibility to advise your household and car insurers that you are fostering. Premiums are not usually affected and most household content policies include accidental damage.
We strongly advise you to ensure that you have adequate insurance in place, in particular for accidental damage.
If you are using your car to transport foster children you must have a fully comprehensive insurance cover.
Fostering While On Benefits
You are not entitled to claim state benefits and allowances for fostered children such as Child Benefit and Child Tax Credit.
Any taxable ‘profit’ you make from fostering (on which you pay income tax) will be taken into account for any Child Tax Credit you may be entitled to in respect of your own children and in calculating Working Tax Credit entitlement.
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