Fostering Allowance

Foster care allowance UK - fostering allowance explained

What Is a Fostering Allowance?

A fostering allowance is the weekly payment you receive from your fostering agency or local authority as soon as you are approved and begin caring for a child. This payment is designed to cover the cost of looking after a foster child, including food, clothing, toiletries, pocket money, travel, activities and household expenses related to their care.

The fostering allowance is not a salary in the traditional sense. It is a maintenance payment that recognises the financial commitment involved in caring for a child. However, many agencies also offer additional fee payments on top of the allowance, which recognise your skills, experience and the complexity of the placement.

Foster care payments vary significantly between agencies and local authorities, which is why comparing agencies through Think Fostering can help you understand what financial support is available in your area.

Types of Fostering Payments

Foster parent payments typically include a combination of allowances, fees and additional support depending on the agency and placement type

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Weekly Maintenance Allowance

The core foster care allowance paid weekly to cover the day-to-day costs of caring for a child including food, clothing, activities, pocket money and household expenses.

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Skills-Based Fee

An additional payment recognising your training, experience and the level of care you provide. The more skilled and experienced you become, the higher your fee payment may be.

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Birthday & Holiday Allowances

Many agencies provide additional payments for birthdays, religious festivals and holiday periods to help cover the extra costs of celebrations and treats for children in your care.

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Equipment & Setup Grants

Initial grants to help you prepare your home for a foster child, including bedroom furniture, bedding, car seats and other essential equipment needed for the placement.

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Specialist Placement Payments

Higher allowances for specialist placements such as children with disabilities, parent and child placements, or emergency fostering, reflecting the additional skills and commitment required.

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Mileage & Travel Expenses

Reimbursement for travel costs related to fostering, including transporting children to school, contact sessions, medical appointments and agency meetings.

Foster care pay tax relief - how much do you get for fostering tax free

Tax Relief & Benefits

One of the most important things to understand about foster care pay is that most fostering income is tax-free. In the UK, fostering allowances are covered under a specific arrangement called Qualifying Care Relief, which means the majority of foster carers pay little or no tax on their fostering payments.

There is a generous tax-free threshold made up of a fixed annual amount plus a weekly amount for each child placed with you. For most foster carers, the total allowance falls well within this threshold, meaning you keep all of your fostering income.

In many cases, fostering allowances do not affect means-tested benefits in the same way as employment income, although individual circumstances vary. Reputable agencies provide guidance on how foster care payments are structured and can direct you to appropriate financial advice.

£18,140

Fixed annual tax-free threshold
(2024/25 tax year)

+£375–£450

Additional weekly relief
per child (depending on age)

£0

Tax paid by most
foster carers in the UK

How much do you get paid for foster care - factors affecting fostering allowance

What Affects How Much You Get Paid?

Foster care payments are not one-size-fits-all. The amount you receive as a fostering allowance depends on several key factors, and understanding these can help you compare agencies and make an informed decision about your fostering journey.

The age of the child is one of the biggest factors, with older children typically attracting higher allowances. The type of placement also matters significantly — specialist placements such as emergency fostering, parent and child fostering, or caring for children with complex needs usually come with higher rates.

Your location plays a role too, with rates in London and the South East generally higher than other regions. The agency you choose makes a big difference, as independent fostering agencies often pay significantly more than local authority rates. Finally, your own skills and experience can increase your fee payments over time as you progress through training levels.

Common Questions About Fostering Pay

Foster parent payments vary depending on the child's age, placement type, location and which agency you foster with. Average foster care payments across independent agencies range from around £400 to £575 per week depending on the age of the child. Specialist and enhanced placements for children with complex needs can attract £650 to £800 or more per week.

Most foster carers also receive additional fee payments on top of the basic allowance, which recognise their skills and experience. When comparing agencies, it is important to look at the total package including fees, benefits and support rather than just the headline weekly rate.

Average rates range from £400 to £575 per week
Many agencies pay significantly higher than minimums
Compare total packages, not just weekly allowances

Most fostering income is effectively tax-free thanks to Qualifying Care Relief. Foster carers receive a fixed annual tax-free threshold plus an additional weekly amount for each child in their care. For the vast majority of carers, total fostering payments fall within this threshold, meaning they pay no tax at all on their fostering income.

Even if your total income exceeds the threshold, you only pay tax on the amount above it, meaning the effective tax burden for foster carers is very low. Your agency can provide detailed guidance on how this works for your specific circumstances.

Qualifying Care Relief makes most fostering income tax-free
Annual threshold plus weekly per-child relief
Most carers pay zero tax on fostering payments

Fostering allowances are generally treated differently from employment income when it comes to means-tested benefits. In most cases, the maintenance element of your fostering allowance is not counted as income for Universal Credit, Housing Benefit or Council Tax Benefit purposes.

However, any skills-based fee element may be treated as self-employment income depending on your circumstances. The rules can be complex and individual circumstances vary, so it is important to seek specific advice from your agency, a benefits adviser or HMRC before making decisions based on benefits.

Maintenance allowances generally not counted as income
Fee elements may be treated differently
Seek specific advice for your circumstances

Policies on retainer payments between placements vary between agencies. Some agencies pay a retainer fee during periods when you do not have a child placed with you, ensuring you have some financial continuity. Others may not offer a retainer or may offer a reduced rate.

This is an important question to ask when comparing agencies, particularly if fostering will be your primary source of income. Understanding an agency's approach to gaps between placements can help you plan your finances and choose an agency that offers the stability you need.

Some agencies pay retainer fees between placements
Policies vary significantly between agencies
Ask agencies about retainer policies when comparing

Independent fostering agencies often pay higher allowances than local authorities because they operate in a competitive market to attract and retain skilled foster carers. The higher rates often reflect not just the weekly allowance but also enhanced training, dedicated support, and additional benefits such as membership schemes and holiday allowances.

That said, higher pay is not the only factor to consider. The quality of support, matching, training and availability of placements all matter when choosing an agency. Think Fostering helps you compare agencies across all of these factors so you can make the best decision for your family.

Independent agencies often offer higher total packages
Competitive market drives enhanced allowances and benefits
Compare support and training alongside pay rates

Yes, it is possible to work while fostering, although your availability to meet the child's needs must come first. Many foster carers work part-time, some work from home, and some continue in full-time roles with flexible arrangements. The feasibility depends on the type of placement and the child's specific needs.

Some placements, particularly emergency or parent and child fostering, typically require you to be available full-time. Others, such as long-term fostering for school-age children, may be more compatible with part-time work. Your agency will discuss this during assessment and help you plan around your circumstances.

Many foster carers work part-time or from home
Availability for the child must come first
Placement type affects how much flexibility you have

Foster care and adoption are fundamentally different legal arrangements, and the financial support reflects this. Foster carers receive ongoing weekly allowances because the child remains in the care system and the agency retains responsibility for the placement. Adoptive parents receive an Adoption Allowance in some cases, but it is typically lower and may be time-limited.

Foster carers also benefit from Qualifying Care Relief tax advantages that are not available to adoptive parents. The financial structures reflect the different nature of each role, with foster care being a professional, supported caring role.

Foster carers receive ongoing weekly allowances
Tax relief is specific to foster care
Reflects the professional nature of foster caring