Foster care is a great direction to take in your life. Our foster parents see it as a rewarding role that allows them to help young people develop and grow, while earning a generous allowance.
Finance isn’t the reason people foster, our foster parents come to the role because they really want to make a difference to the lives of children. But we know how important money is to almost every aspect of our lives. It’s important to consider how fostering will affect your finances to understand if fostering can work for you.
At Fostering People, we believe the more information you have, the better, so here we have provided you with all the information you need to make an informed choice. After all, we need to know that children in your care are in safe and stable families, and finance plays a big part in any family’s stability.
If you do have any questions, we are always happy to help, just give us a call on 0800 0778159.
We will cover:
- How much do foster parents get paid
- Private fostering agencies vs local authority allowances
- How do foster payments work
- Fostering Tax
- Fostering and benefits
- What does the allowance cover
- Work and fostering
This page is designed to help you better understand how much you’ll receive and outline the factors that need to be considered before taking the next step on your journey to becoming a foster parent.
We offer one of the best fostering allowances.
Alongside our Outstanding support, we offer one of the highest fostering allowances available. Our allowances range from £454 – £860.88. Our standard rate for a child over the age of 5 years is over £501 per week, per child (£2,177 per month). Additionally, foster parents pay no tax on their fostering allowance.
Our average family fostering income.
At Fostering People, many of our foster parents foster more than one child. this can be siblings or non related children depending on bedroom availability. The average allowance our fostering families receive is per year is £45,349. (£3,779 per month) tax free.
Our average allowance per chid.
At Fostering People we have our own bespoke disability service, foster parents caring for children with complex needs receive an enhanced allowance. the average annual allowance we pay per child is £26,676 (£2,223 per month) tax free.
Plus extra benefits
We offer all of our foster parents 14 nights paid respite so they can take a well earned break. For some families this isn’t needed and instead are paid an additional 14 nights fostering allowance. Our foster parents also receive a contribution towards birthday gifts and religious holiday gifts for each child in their care. We have additional perks too!
Sally and Alison
Foster an 8 year old. They receive £501.13 per week /
£2,177.53 per month / £26,130.35 per year TAX FREE!
Angela and Mike
Foster 2 children aged 10 and 13. They receive £1,002.26 per week /
£4,355.06 per month / £52,260.70 per year TAX FREE
Marie
Fosters a 6 year old with additional needs. She receives £765.58 per week /
£3,326.63 per month / £39,919.53 a year TAX FREE.
Mike and Alison
Foster a mother and baby. They receive £798.63 per week /
£3,470.34 per month / £41,642.85 a year TAX FREE
Fostering allowance examples
Depending on the type of fostering you do and the ages of children you care for, your allowance will differ. Here are some examples to give you a really good example of what your fostering income could be.
Finance Calculator
To learn how much you could earn through fostering, we recommend giving us a call on 0800 077 8159 or use our Finance Calculator.
We offer one of the very best fostering allowances available!
Discover more about how fostering will affect your families finances with our comprehensive finance guide.
Find out more about:
- How much fostering allowance you’ll receive and how this compares with statutory fostering rates.
- What you’ll need to provide for children you care for.
- How your fostering allowance is completely TAX FREE and how this works.
- If you are currently claiming benefits, how fostering affects this.
- Planning for your retirement
Private foster agencies vs local authority fostering allowances
Each local authority sets their own foster care allowance and this can vary from local authority to local authority. Usually an independent fostering agency like Fostering People is able to offer foster carers a higher foster care pay. Although all local authorities are different they do have minimum weekly allowance guidelines which range from £170 – £299 per week. At Fostering People our minimum payment is £454, which very few of our foster parents receive, most receive a minimum of £501 per week or more.
Multi child allowances
If you are fostering siblings or multiple children from different families, a fostering allowance is paid to you for each child in your care. The maximum number of children a foster parent can care for at any one time is three.
How does foster care pay work?
We pay our foster parents every fortnight via a BACS payment direct to your bank account. Payments are made for every night a child is in your care and you’ll know in advance when the payments are made. So when a child is placed with you, you’ll know exactly when you’ll be paid.
Certain expenses you incur when looking after children are not covered as standard by your foster care pay and in those instances, you’ll be able to submit an expense claim which will be paid to you alongside your fostering allowance. Your supervising social worker will be able to advise you if there is anything you are not sure of, as some expenses may need prior approval from the child’s local authority prior to payment. An example of this might be if a child needs a computer at home.
Tax, Work and Benefits
Tax & National Insurance
What benefits can you claim whilst fostering?
Fostering and working alongside.
What do payments cover?
Our fostering allowance is generous and is there to cover the full cost of caring for a child as well as provide a payment to you that rewards your hard work and dedication. The foster care allowance covers food, clothing, transport and additional utility costs such as gas and electric. We’ll also ask our foster parents to provide age appropriate pocket money and put a little bit away each week in savings for a child in your care.
From the fostering allowance we would also ask you to support a child in attending any clubs or activities they would like to do, as well as providing children with days out.
We also provide days out and activities as part of our support package too. After all, we all want children to enjoy themselves and have fun.
Additional Costs
All foster parents may incur additional costs which aren’t covered by the fostering allowance. We agree these costs with you and in some cases may need to seek authorisation from the local authority. Additional costs can include additional mileage if a child needs to be taken long distances for contact or to school.
These are agreed before a child comes to live with you, so there won’t be any surprises and your supervising social worker is there to help and advise you.
Things to consider before fostering
Before taking the big step of becoming a foster parent, we recommend you take every aspect of your life and your family’s lives into consideration. Fostering is a big commitment that can impact your life in unexpected and wonderful ways. Below we have listed some of the most common questions we get asked to help you decide if fostering is right for you.
Can I continue to work while receiving Foster Care allowance?
Yes, you can. Although many foster parents prefer not to. We pay a generous fostering allowances because we know the demands of the role and by enabling the main foster parent to consentrate on fostering can really help. This means you can be constantly available to a child in your care, and be able to attend meetings and training.
Other foster parents prefer to work part-time and make themselves available at short notice, such as if their child falls ill at school. We have foster parents who continue to work and others who’d rather stay at home. We’ll look at this with you and consider your individual circumstances.
But if you work full time and do not have flexibility in your work, it is unlikely that you’ll be able to foster alongside.
Will I be paid in between fostering placements?
No, we don’t pay a retainer fee in between fostering placements.
At our fostering agency we aim to leave as little or as much time in between placements as you wish.
At Fostering People we have very high levels of referrals so most of our foster parents don’t need to wait long if they are wanting to care of a foster child.
Some foster parents can wait a little while, but there are often reason for this such as placing children alongside your own birth children, living in a remote location or being very limited on the types of children you are happy to care for. If you’d like continuous fostering placements, you may want to consider caring for teenagers as well as younger children.
Take your first step to becoming a foster parent today
If you’re interested in becoming a foster parent and would like to learn more, then we’d love to hear from you.
Simply fill in the form below and one of our friendly team will be in touch.
Enquiry
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Frequently asked questions
Does a foster parent get paid for fostering?
Yes, go to our financial calculator to gain an idea about how much you could receive.
How much is a foster parent paid?
Our foster carers do a fantastic job, which is why we reward them for their hard work with generous fostering payments. The exact amount you’ll receive will vary depending on the type of placement and the individual needs of the child. The average payment we make to our fostering families is £501 per week per child. Visit our fostering allowances page to find out more.
Will I be paid in between fostering placements?
No, we don’t pay a retainer fee in between fostering placements. We can aim to leave as little or as much time in between placements as you wish. If you’d like continuous fostering placements, you may want to consider fostering a teenager as well as younger children.
Do I have to pay tax on my fostering allowance?
As a foster parent, you won’t have to pay tax on the first £19,690 you earn from fostering. This is because HMRC provides a fixed tax exemption of up to £19,690 per year. This tax exemption is shared equally between all foster parents in the same household. Read more >
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Suite D, The Point,
Welbeck Road, West Bridgford,
Nottingham, NG2 7QW