Changes to how foster carers are being taxed and the allowances they receive need to be put in place to help them tackle record inflation, a report is warning.
The report is based on the views of more than 4,000 foster carers and highlights the impact of that the current double-digit rate of inflation is having on their household finances.
To offset the impact of rising bills, HMRC is being urged to overhaul how carers are being taxed.
Fostering services also need to ramp up the allowances they are offering carers, recommends the report.
It calls for foster care allowances to be increased from their current rate of between £137 and £240 a week.
The report, which has been published by fostering advice service FosterTalk, says these rates are currently inadequate to support carers, with nearly half saying they have had to take on additional work or hours to pay their bills.