We are thrilled to welcome the recent announcement from the UK government regarding an increase in qualifying care relief for foster carers. This is fantastic news for the thousands of foster carers who dedicate their time and energy to providing safe and nurturing homes for vulnerable children and young people. This is in addition to the announcement that in England, above inflation rises in the National Minimum Fostering allowances will be implemented from 6th April 2023
We want to sincerely thank all our members who participated in our Cost-of-Living survey, campaign and petition, and the government for taking this vital step towards acknowledging the value of foster carers and their crucial role in the lives of children in care. This is a positive development for the foster care community, and we are hopeful that this change will have an impact on the recruitment and retention of foster carers and, therefore, the children they care for.
Currently, a fixed amount of £10,000, plus
Weekly amounts for each cared-for child or adult, currently:
£200 for each child under 11 years of age
£250 for each child 11 years of age or older
£250 for each adult
The earning threshold for the scheme and extra relief will rise in April to:
A fixed amount of £18,140, plus
Weekly amounts for each cared-for child or adult:
£375 for each child under 11 years of age
£450 for each child 11 years of age or older
£450 for each adult
This increase will ensure that the vast majority of foster carers are taken out of tax on their care income and restore the value of the relief back to the original intention of the 2003 level. The proposed legislation revisions will introduce a new section to link the fixed amount and weekly amounts to CPI inflation. This increase linked to inflation will first take place in the tax year 2024 to 25.
You can read the full policy paper on the GOV.UK website here.
FosterTalk members can benefit from 1-2-1 Tax support and advice from our Foster Care Tax experts at BK Plus. Members can call us on 0121 758 5013
Please let us know your views at email@example.com