Fostering allowance
Independent Fostering Agencies (IFAs)
IFAs do not subscribe to the Nationally recommended rates for each foster child as Local Authorities do. This means IFAs have been able to simplify their payment schemes to foster carers.
On average, IFAs pay a basic weekly fostering allowance and fee of £400 per week for all ages of children.
Some IFAs also pay foster carer enhanced payments of up to double their standard rate, dependent on the needs of the child, such as :
- Parent and child placements;
- Children with special needs;
- Remand placements.
IFAs tend not to make different foster care payments regardless of the type of fostering such as short term break placements and long term foster care placements.
IFAs have grown significantly in recent years to over four hundred in the UK. The growth has been due to the shortage of foster placements which caused a crisis in foster care recruitment. IFAs are regulated, inspected and required to work under the same legislation as Local Authority fostering providers.
Local Authorities
The Local Authority fostering fees and allowances structure has Nationally recommended rates for each foster child. Foster carers are paid a weekly allowance to cover the cost of fostering a child or children.
Foster Care Payments
Local Authority payment structure.
The Fostering Network minimum weekly allowance rates from April 2010 are:
Outside London
- Age 0-4: £125.09
- Age 5-10: £142.49
- Age 11-15: £177.38
- Age 16+: £215.74
- Age 0-4: £146.81
- Age 5-10: £167.36
- Age 11-15: £208.42
- Age 16+: £253.10
The foster carers allowance is provided to cover the following:
household costs, food, clothes, travel, school dinners and any other things required to look after a child. The payment takes into account the fact that foster care for children cost more than caring for birth children.
In addition to the fostering allowance other payments may be made to foster carers, depending on their experience and qualifications. These payments maybe between £50 and £200 per week. Generally, Local Authorities pay their fostering allowances directly into the foster carer's bank account every two weeks. Local Authorities tend to have different allowances for short break foster carers.
As a potential foster carer, it is important that you find out about the financial aspects of fostering prior to your application to a Fostering Agency.
In receipt of Benefits?
The general position of foster carers is that any payments received regarding fostering will be disregarded for benefits purposes. However, this will not be the case if you are treated for Tax and National Insurance purposes as though you were self-employed when you should seek further advice from your local Benefits office.
As a foster carer you will not be able to claim Child Tax Credit or Child Benefit for a foster child if you are in receipt of a fostering allowance. However you may be able to claim Working Tax Credit if you are receiving the reward element and you are treated as self employed. If you are putting in a claim for this, seek professional advice first.
Foster carers may be in a position to claim any of the following benefits, according to circumstances:
- Income Support
- Income-Based Jobseeker's Allowance
- Housing Benefit
- Council Tax Benefit
- Disability Living Allowance
- Working Tax Credits
Affording to foster
Fostering is no longer seen as a voluntary service. In order to recruit and retain foster carers, they need to be financially rewarded as any other workers in social care.
Local Authorities and Independent Fostering Agencies provide fees and allowances to enable foster carers to care for children and young people on a full-time basis.
A Fostering Career?
Can fostering children be a full time job?
Yes. It is usually expected that a foster carer will become available full time. Generally, the more available you are, the more foster care placements you will be offered.
If you would like us to support you with an application to become a foster carer or you just require further information about foster caring, complete the foster carer enquiry form. Please read our statement of confidentiality.
Timescales
In our experience, Local Authorities take six months and Independent Fostering Agencies take an average of four months to complete the foster carer assessment. However Local Authorities are catching up.
More information...Foster care course
As your application proceeds you will be invited to attend a fostercare training course, most Fostering Agencies use the Fostering Network course called "Skills to Foster".
More information...Assessment
The fostering social worker will visit you and your family at home. It is important that you discuss fostering with your children at an early stage and check out how they feel about being part of a fostering family.
More information...
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