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Fostering as a career

Can fostering be a full time job?

It is usually expected that a foster carer will become available full time. Generally, the more available you are the more placements you will be offered.

Payments.

In our experience one of the most difficult issues for people has been discussing finance. Because of the thought of being paid for looking after children, foster carers told us that they found it embarrassing to talk about payments.

Times have changed and fostering is no longer seen as a voluntary service. In order to recruit and retain foster carers they need to be financially rewarded as are 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.

Local Authority payment structure

The Local Authority fees and allowances structure has Nationally recommended rates for each child cared for. Foster carers are paid a weekly allowance to cover the cost of looking after a child or children.

The 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 children in care cost more than caring for birth children.

Payments

Currently a typical Local Authority payment structure  is:

Age in Years

Amount per week London addition
 0–4  £112  +15
 5–10  £127  +23
 11–15  £159  +28
 16+  £193  +34

 

In addition to the fostering allowance other payments maybe made to 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.

Independent Fostering Agencies (IFAs)

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.

IFAs do not subscribe to the Nationally recommended rates for each 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 fee of  £380 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 payments regardless of the type of fostering such as short term break placements and long term placements.

As a potential foster carer, you must find out about the financial aspects of fostering prior to your application to a Fostering Agency.

If you would like us to support you with an application to become a foster carer or you just require further information, complete the foster carer enquiry form. Please read our statement of confidentiality.

Pension

Foster carers are entitled to 'Home Responsibilities Protection' (HRP). This means the number of years foster carers need to work to qualify for the state pension will be reduced to take into account their years of caring for foster children. This change will increase a foster carers financial security and recognise the importance of the work that they carry out. For more information visit the pensions website at:

www.pensionsservice.gov.uk

Income tax exemption

Foster carers are entitled to an income tax exemption up to a certain threshold for their fostering. The threshold has two elements:

  • A fixed amount to cover capital costs initially set at £10,000 per year
  • An additional amount per child, initially set at £200 per week for a child up to the age of 11years and £250 per week for a child aged 11 years and over.

The reason for this government initiative is to make sure foster carers are not unfairly taxed on the expenses they incur through fostering. For more information contact HM Revenue and Customs at :
www.hmrc.gov.uk/about fostering

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Any further questions you would like answered please contact Simply Fostering through our contact us form.

Introduction