Foster care pay and allowances
We often get asked if foster carers are paid for fostering. The answer is yes!
Our foster carers receive a generous weekly allowance to help cover the cost of caring for their foster child, such as clothing, food, savings and pocket money. They also receive an additional payment matching their skill level.
Our competitive financial rewards package shows how much we value our foster carers.
After all, being there for you and encouraging you to be a fantastic foster carer means local children and young people in Blackpool will thrive in your care.
We have different fostering pay scales, depending on your experience, training and the needs of the child.
Foster carer pay
Our fostering payments are in two parts:
- Allowance for the child
- Weekly fee
The allowance varies according to the age of the child (or children) being cared for. Additional payments are also made for birthdays, religious festivals and a holiday allowance based on the age of the child.
The weekly fee is based on your skill level and increases with the number of children placed and with the level of training and experience. It ranges from level 1 to 3 with a bespoke payment for levels 4 and 5, which are our specialist schemes for children and young people with a range of different needs.
As a new foster carer, you’ll receive the introductory rate at level 1, unless there’s sufficient evidence that you can meet a number of requirements.
Regular weekly allowance
| Age group | 0 to 2 years | 3 to 4 years | 5 to 10 years | 11 to 15 years |
16+ years |
|---|---|---|---|---|---|
| Weekly allowance per child | £165 | £170 | £187 | £213 |
£249 |
Foster carers weekly fee per child
| Level | 1 | 2 | 3 | 4 |
5 |
|---|---|---|---|---|---|
| Fee | £137 | £200 | £257 | £472.50 |
£787.50 |
For example, a newly approved foster carer looking after a five-year-old child could earn £324 per week.
Do foster carers pay tax?
Foster carers benefit from a fixed tax exemption of up to £18,140 per year. This means that you don’t have to pay tax on the first £18,140 income you make from fostering. You’ll still pay tax on money you earn from a job or investment.
You can find more information on the government website here.
All foster carers are treated as self-employed for tax purposes. The HMRC has set up a specific tax scheme for foster carers called qualifying care relief.
You may find that your total fostering payments are below the tax threshold and you may not need to pay any tax.
Also, your fostering allowance won’t affect most state benefit payments. As fostering counts as self-employment, you may be entitled to Working Tax Credit and also Child Tax Credit.
The Fostering Network operates a legal advice helpline and a tax advice helpline. Foster carers must complete a tax return annually.
Would you like to find out more?
If you have considered fostering before but weren't sure you could afford it, please get in touch and find out if it could now be a viable option for you.
We would love to hear from you, contact us.