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.

Our foster carers receive a fee and allowance for each child they foster.

Regular weekly allowance per child
Age Group	0 to 4 years	5 to 10 years	11 to 15 years	16 to 18 years
Allowance (£)	£172.90	£190.75	£218.33	£265.44

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 per child
Level	1	2	3
Weekly fee (£)	£88.62	£171.01	£329.14

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.

Examples of foster carer payments

Example one: Partners Sarah and Angela are Level 1 foster carers who look after one child aged 12. Angela is the primary carer, while Mark works full time outside the home. Their annual payment is £15,961 annually.

They receive a Level 1 fee of £88.62 per week, as well as the weekly allowance for a child aged 11-15 of £218.33. In total they received a weekly payment of £306.95.

Example two: Amy is a single, Level 1, foster carer looking after sisters aged 11 and 16. Her annual payment is just over £34,372.

Amy is a Level 1 foster carer caring for two sisters, aged 11 and 16, she receives a weekly payment of just over £661, which includes the Level 1 fee for both children (£88.62 x 2 = £177.24), as well as the allowance for a child aged 11-15 (£218.33) and the allowance for a child aged 16-18 (£265.44).

Example three: Level 2 foster carer Mike cares for a brother and sister aged 8 and 10 respectively. His annual payment is just over £37,634.

His fee each week is £171.01 x 2 = £342.04, while the allowance for both children is £190.75 x 2 = £381.50, which amounts to weekly payments of £723.54.

Example four: Couple Matt and Jeff care for three children, all aged between 5-10, and receive fostering payments of more than £81,000 annually.

Experienced Level 3 carers Jeff and Matt foster three boys aged, 6, 9 and 10 years old. They receive a weekly payment of just over £1559, which includes the Level 3 fee for all three children (£329.14 x3), along with the allowance of £190.75 x 3 for each of the children.

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: