Fostering fees and allowances

Our fostering payments are a combination of:

1. A maintenance allowance for the child

2. A fee paid to the carer

The allowance covers the costs of everything that you need to care for a child such as food, clothing, transport, personal items and household expenses.

The foster carers' fee recognises the amount of time they dedicate to fostering, as well as their skills and experience.

The level of fee and allowance paid varies dependent on the foster carers' experience and the age of the child.

Most of our carers start at Level 1, but we offer everyone the opportunity to progress through the fee levels.

Regular weekly allowance
Age Group	0 to 4 years	5 to 10 years	11 to 15 years	16 to 17 years
Allowance (£)	£161.98	£178.71	£204.61	£248.71

An extra two weeks allowance is split and paid over six weeks in the Summer Holidays, an extra weekly allowance is paid for the child's birthday and an extra weekly allowance is made at Christmas.

Foster carer fees
Level	1	2	3
Weekly fee (£)	£83.02	£160.23	£308.42

Retainer payments

A retainer payment which will be a payment of the fee (according to level on the structure) will be paid to mainstream carers where they are available and willing to take a placement but there is no placement in situ. The retainer fee is payable for a maximum of 8 weeks in one financial year.

Foster Carer Tax Relief

As a foster carer you'll be entitled to tax relief on your income from fostering, meaning you'll pay very little (or no) tax and national insurance.

You'll need to register as self-employed and you'll be asked to complete a tax return.

The tax relief you get depends on your own financial circumstances.

Tax exemption

There is a fixed tax exemption of £10,000 per year (less for a shorter period) which is shared equally among any foster carers in the same household. This means you don't have to pay tax on the first £10,000 income you make from fostering.

Tax relief

As well as the tax exemption, you'll also get tax relief for every week (or part week) that a child is in your care. This means you don't have to pay tax on some of your earnings over £10,000.

Support from HM Revenue and Customs

Help and support is available from HM Revenue and Customs, helping foster carers with self-assessment and tax returns, eLearning, live events to enable foster carers to ask questions to a team of experts.

Tax for foster carers (eLearning)

HMRC help and support

Get in touch

We're happy to answer any questions you have about our fees and allowances and whether fostering with us could be a viable prospect for you: