Fostering Allowance

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

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

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

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

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

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

Yes, foster carers providing respite care receive a fostering allowance for each night a child stays with them. Respite rates vary between agencies but are typically similar to the standard weekly allowance calculated on a per-night basis. If you are a registered respite carer, you will receive payment for every placement, even if it is just for a weekend or a few days. Many agencies actively recruit dedicated respite carers to provide regular breaks for full-time foster families.

Respite carers are paid on a per-night basis

Rates are similar to standard weekly allowances

You are paid for every placement, including weekends

The amount foster carers receive per child per week varies depending on the agency, the type of fostering, and the age of the child. The government sets minimum weekly allowances ranging from around 150 pounds for younger children to over 200 pounds for teenagers. However, many independent fostering agencies pay significantly more, with total weekly payments including fees often ranging from 350 to 650 pounds or more per child. Specialist placements such as therapeutic or complex needs fostering can attract higher rates.

Government minimum starts around £150 per week

IFA total payments often range from £350 to £650+

Specialist and therapeutic placements attract higher rates

Older children and teenagers receive higher allowances

A professional fee is paid on top of the basic allowance

Foster carers are self-employed, so they do not receive paid holidays in the traditional sense. However, you continue to receive your fostering allowance and fee throughout the year, including during holidays. Many agencies also provide additional holiday allowances or one-off payments to help cover the cost of holidays and activities with your foster child. Some agencies offer respite cover so you can take a break while knowing the child is being well cared for by another approved carer.

Allowance and fee continue throughout the year

Many agencies provide additional holiday allowances

Respite cover available so you can take breaks

The fostering allowance is designed to cover the day-to-day costs of looking after a child. This includes food, clothing, toiletries, pocket money, transport costs such as school runs and contact visits, school equipment, leisure activities, and household costs like additional heating and water usage. Some agencies also provide additional allowances for birthdays, religious festivals, and back-to-school costs. Your fostering fee, paid on top of the allowance, is your personal income for the work you do as a carer.

Covers food, clothing, toiletries, and pocket money

Transport costs including school runs and contact visits

Leisure activities, school equipment, and household costs

Additional allowances for birthdays and festivals

Your fee on top of the allowance is your personal income

Yes, fostering allowances are typically higher for teenagers than for younger children. This reflects the higher costs associated with caring for older children, including larger clothing sizes, greater food consumption, more expensive activities, and the need for technology such as phones and laptops for school. The exact difference varies between agencies, but you can generally expect the allowance for a teenager to be 20 to 40 percent higher than for a child under five.

Teenager allowances are 20-40% higher than younger children

Reflects higher clothing, food, and activity costs

Covers technology needs like phones and laptops for school

Fostering income, including both the allowance and any fee you receive, is not counted as income for Universal Credit purposes. This means your fostering payments will not reduce your Universal Credit entitlement. However, if you are also working alongside fostering, your employment income will be assessed as normal. It is always a good idea to inform your local Jobcentre Plus that you are a foster carer, as this may also affect any work-related requirements attached to your claim.

Fostering income is not counted for Universal Credit

Your payments will not reduce your UC entitlement

Inform Jobcentre Plus to adjust work-related requirements

As foster carers are self-employed, they do not automatically receive an employer pension. However, you are entitled to the State Pension based on your National Insurance record. Foster carers can receive National Insurance credits for each week they have a child in placement, which count towards your State Pension entitlement. Some foster carers also choose to set up a private pension using part of their fostering fee. It is worth speaking to a financial adviser about your retirement options.

NI credits for each week with a child in placement

Credits count towards your State Pension

Many carers set up a private pension from their fee

If a child leaves your placement earlier than expected, most agencies will continue to pay your allowance and fee for a short period, typically one to two weeks, as a retainer while they work to find your next placement. Policies vary between agencies, so it is important to discuss this during your assessment. Some agencies offer longer retainer periods or guaranteed minimum payments to provide carers with greater financial security between placements.

Most agencies pay a 1-2 week retainer

Some agencies offer guaranteed minimum payments

Discuss retainer policies during your assessment

Yes, many paid foster carers work alongside fostering. The key is ensuring your work commitments do not prevent you from meeting the needs of the child in your care. If you are fostering a school-age child, working during school hours is often manageable. Part-time, flexible, or remote work tends to be the best fit for foster carers. Your fostering agency will discuss your work situation during the assessment and will want to be confident that you can attend meetings, appointments, and be available in emergencies. Some carers find that their fostering fee and allowance combined mean they can reduce their working hours or stop working altogether.

Part-time, flexible, and remote work fits best

Working during school hours is often manageable

Many carers reduce hours or stop work entirely

Your agency will discuss work during assessment

You need to be available for meetings and emergencies

Fostering payments are disregarded as income for most means-tested benefits. This includes Universal Credit, Housing Benefit, Council Tax Support, and Tax Credits. Your fostering allowance and fee will not reduce your benefit entitlement. However, fostering may affect some non-means-tested benefits depending on your circumstances, and a foster child living in your home could affect the bedroom tax or the number of rooms you are assessed for in housing applications. It is always advisable to notify your benefits office that you are fostering and to seek advice from your agency or a welfare rights adviser.

Disregarded for Universal Credit, Housing Benefit, and Tax Credits

Fostering pay does not reduce Council Tax Support

What is the average pay foster carers get in the UK by region?+

Foster carer pay varies across the UK depending on your region, the age of the child, and whether you foster through a local authority or an independent fostering agency. The government sets a national minimum allowance each year, but many agencies pay significantly more. For 2025/26, the weekly minimum allowances for a primary-age child are approximately:

London and South East: Around £260 per week, the highest minimum rates reflecting the cost of living.

Rest of England: Around £230 per week, covering the North West, North East, Yorkshire, Midlands, and South West.

Scotland: Approximately £220-£245 per week with a 1.7% uplift for 2025/26.

Wales: Approximately £210-£240 per week with a 2.6% uplift for 2025/26.

Northern Ireland: Approximately £215-£240 per week with a 3% uplift for 2025/26.

On top of the basic allowance, most agencies pay a professional fee of £150 to £300 per week. Independent agencies often pay total packages of £400 to £700+ per week per child. The Fostering Network recommends £251 for ages 0-4, £343 for ages 5-10, and £434 for ages 11+ for 2026/27.

London and South East carers receive the highest minimum rates

Rest of England receives a standard rate approximately 12% lower

Independent agencies often pay £400 to £700+ per week total

Professional fees of £150-£300 per week paid on top of the allowance

Allowances are reviewed and increased annually in line with inflation

Do you get paid more as a foster carer if you live in London?+

Yes, foster carers in London and the South East receive higher fostering allowances than carers in other parts of England. The government recognises that the cost of living, particularly housing, food, and transport, is significantly higher in London. The London weighting means the minimum weekly allowance for a primary-age child is approximately £260, compared to £230 in the rest of England.

However, the full picture is important. While London allowances are higher in cash terms, the higher cost of living means real-world purchasing power can be similar to other regions. Foster carers in the North of England, Yorkshire, and the Midlands often find their allowance goes further due to lower housing and living costs.

Independent fostering agencies in London tend to pay the highest total packages, with some offering £600 to £800 per week for specialist placements. However, IFAs in other regions also offer competitive rates, and the gap between London and regional rates has narrowed in recent years.

London carers receive approximately 12-15% higher minimum allowances

South East rates are also higher to reflect regional living costs

Allowances in the North often go further due to lower living costs

London IFAs can pay £600-£800 per week for specialist placements

The gap between London and regional rates has narrowed in recent years

A foster child may affect bedroom tax assessments

Always notify your benefits office that you are fostering

Seek advice from your agency or a welfare rights adviser