BACK TO BLOGBecoming a foster carer is an amazing opportunity to transform the life of a child in need by providing a home for them to heal and grow. While it’s an incredible experience, it’s important to consider the practicalities as well.
This is why understanding the financial aspects of the role, such as foster care allowances, is essential.
As a foster carer, you will receive financial support to help cover the cost of caring for a child. From groceries to school supplies, this support is designed to ease financial strain so you can focus on what truly matters: providing a safe and nurturing environment.
In this blog, we cover the ins and outs of foster care allowances, including what questions you should ask your service about your foster care finances.
What is a foster care allowance?
A foster care allowance is a monthly financial support provided by the government or a child welfare agency to foster parents. The minimum provided by the English government is usually between £169 and £289 a week. Each government of the UK sets its national minimum or recommended allowance for foster carers according to the age and needs of a child.
You may also receive a ‘fee’ (your wage as a professional carer), but this depends on the service you are fostering through, as not all services provide extra pay.
You will receive your foster care allowance through an IFA (independent fostering agency) or LA (local authority).
This allowance is intended to cover the basic needs of a child placed in foster care, including food, clothing and school fees.
Depending on the service you are fostering through, you will be informed about what you can and cannot spend your allowance on. This might include enriching experiences and goods such as extracurricular activities, outings, and maybe even that special birthday gift they’ve been wishing for.
What are the tax arrangements for a foster carer?
One of the most important details to remember when considering foster carer finances is that being a foster carer is classed as being self-employed.
Therefore, when it comes to your taxes, you will need to complete a tax return every year.
If your service includes a FosterTalk membership, you’ll have access to tax, benefits and National Insurance advice and a tax advisor to help with your return (for a preferential fee).
8 questions to ask your service about foster care finances
How much is your foster care fee?
As previously mentioned, the government will provide you with a minimum allowance each week. However, you may be entitled to more, with the total amount vary depending on factors such as:
- Where you live
- Which fostering service you use
- The child’s age
- If the child has specific needs
- Your skills and experience
Does my local council have a foster care scheme?
Another enquiry you should make is if your local council has some kind of scheme for foster carers.
Some councils completely exempt foster carers from having to pay council tax, some give them a reduction – it can be beneficial to do some research and find out what your local council provides for foster carers.
What additional benefits does your service provide?
You may also want to find out if your fostering service provides any additional benefits, which can differ from service to service. For example, can you expense extra mileage/travel costs for children?
How should a disabled living allowance be spent?
If a child has a disability or special needs, that means they will have extra care requirements; foster carers might be offered an enhanced payment for caring for them.
In addition to this, you may also be able to claim disability living allowance (DLA) from the Department for Works and Pensions (DWP).
If you are already claiming foster care allowance, we recommend getting advice from your fostering service, as each service has a specific policy on the use of DLA. If you discover that the child is entitled to DLA, just as with your allowance, it’s important to ask what costs it may be used for, and how you should record your expenditure.
Will I be eligible for any discount cards/memberships?
As a foster carer you might be eligible for memberships that offer you discounts for anything from groceries, clothing and healthcare to holidays and days out.
As of 2022, foster carers are now eligible for a Blue Light Card, which is a discount provider, offering a wide range of savings to those in the emergency services, NHS, social care sector and armed forces.
Does your service pay for a foster support membership?
As a foster carer, it is incredibly important to have a support network around you to turn to and communicate your experiences and voice any successes or concerns you have along your fostering journey.
That’s why you should ask if your fostering service pay for the membership of a support organisation, who can offer you advice and legal cover as and when you require it.
Foster care is not a journey you ever need to take alone.
What is your payment policy in the event of an allegation?
There are many complex reasons why allegations are made against foster carers, and whenever an allegation has been made, it needs to be investigated thoroughly, following a careful process to protect the child involved.
For caregivers who are subject to an allegation, guidance and support is provided to help navigate the investigation process.
You should ask whether, in the event of an allegation where a child is removed from your care, will you still receive your allowance/fee, or receive a retainer while the allegation is investigated?
Foster Care Support Services from FosterTalk
At FosterTalk, we understand that fostering is not just about providing a home; it’s about creating an environment where children can thrive.
That’s why our comprehensive support services extend beyond the basics, offering guidance on foster care finances, from tax arrangements to additional benefits. Every detail matters in creating a stable and loving home.
So, whether you’re just starting your fostering journey or you’re an experienced caregiver, know that you’re never alone. FosterTalk is here to support you every step of the way.
To find out more, don’t hesitate to get in touch with a member of our team today.
