Wanting to fully understand the financial aspects of fostering is a natural part of the process. Our team of advisors can provide detailed explanations about fostering fees and allowances, empowering you to make well-informed decisions. Each local council sets their own allowance rates based on Government guidelines, so there’s no fixed allowance for fostering.
Fostering Allowance
In the south west foster carers receive a competitive allowance and fees.
All foster carers receive an allowance to cover the costs associated with caring for the child, including food, clothing, toiletries and other necessities. This financial support helps alleviate the financial strain of fostering, so you can focus on meeting the needs of the child in your care.
Fostering Payments
As a foster carer for South West Fostering, you will be paid by the local authority you are fostering for.
Fee payments are made on top of allowances to recognise that foster carers are essential to our work to support children in our area, and that their task is one of the most challenging of those involved in supporting children and families.
The amount you are paid will be based on the number of children and young people in your care, as well as other factors such as their age and needs.
Self-employment and paying tax and National Insurance on fostering allowance
As a foster carer you are classed as self-employed for tax and national insurance purposes, so you need to register with HMRC.
Qualifying care relief means that households do not pay tax on the first £18,140 they earn from fostering. On top of this exemption, you can also get tax relief for each week (or part week) a child is in your care, reducing the tax paid on any earnings above this amount. This means you do not have to pay tax on some of your earnings over £18,140.
This means, as a foster carer, compared to alternative employment with a similar salary, you would keep more of your fostering income.
Foster caring and claiming benefits
You might be surprised to learn that people who claim benefits may not automatically lose those benefits if they start to foster. The exception to this is Jobseeker’s Allowance as a foster carer who is looking after a child in care will not usually be available for work.
Interested in starting your fostering journey?
Get in touch with one of our experienced, friendly team to discuss your potential future as a foster carer…