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Fostering Allowances, Payments, Fees

Affording to foster - A Fostering Career

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.

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.

Allowances - 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 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.

Allowances - 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.

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.

Foster Care Payments

Local Authority payment structure.

The national minimum allowance rates for 2009/10:

Weekly rates
Babies  Pre-primary  Primary  Secondary  Secondary (16-17)
Base            £106         £108           £119         £137            £159
South East  £117         £120           £134         £152            £179
London        £122         £125           £140         £158            £186

The national minimum allowance rates for 2010/11 are:

Weekly rates 
Babies    Pre-primary  Primary  Secondary Secondary (16-17)
Base            £109           £111            £122        £140           £164
South East  £120           £123            £137        £156           £184
London        £126           £129            £144        £163           £191


The national minimum allowances are the base mimimum rates and these are used as guidelines by Local Authorities.

In addition to the fostering allowance other payments maybe 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.

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.

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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".

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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.

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Foster carers 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 : hmrc.gov.uk/childbenefit
 

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

Fostering and Adoption