Fostering Allowances & Pay
A comprehensive guide to foster carer allowances in England. Understand what financial support is available and how it works.
Important Note
Fostering allowances vary significantly between agencies and local authorities. The figures shown are typical ranges and should be used as a guide only. Always confirm exact rates with individual agencies.
Types of Allowances
Foster carers typically receive a combination of allowances designed to cover the costs of caring for a child and recognise your skills and commitment.
Basic Maintenance Allowance
Covers the day-to-day costs of caring for a child including food, clothing, transport, and activities.
Skills-Based Fee
A fee paid to foster carers in recognition of their skills, experience, and professional development.
Holiday Allowance
Additional funds to help cover costs of holidays and special outings with foster children.
Birthday & Celebration Allowance
Funds for birthday presents, Christmas gifts, and celebration events.
Example Total Package
Here's an example of what a typical foster carer might receive caring for one child aged 10:
This is an illustrative example only. Actual payments vary by agency, placement type, and child's needs.
Additional Support
Beyond regular allowances, foster carers often receive additional support and benefits.
Mileage & Travel
Reimbursement for travel to school, contact visits, and appointments
Equipment Grants
Funds for initial setup including bedroom furniture and essential equipment
Training Expenses
Costs covered for required training and professional development
Respite Support
Paid respite breaks to support foster carer wellbeing
Legal Retainer
Some agencies pay a retainer between placements
Emergency Support
24/7 support line and emergency financial assistance
Tax & Fostering Income
Foster carers benefit from generous tax relief. Most foster carers pay little or no tax on their fostering income.
Tax-Free Threshold
The first £10,000 per household is tax-free, plus £200/week per child under 11 or £250/week per child 11+.
Qualifying Care Relief
HMRC provides Qualifying Care Relief which means most foster carers pay little or no tax on their fostering income.
Self-Employment
Foster carers are self-employed and need to complete self-assessment tax returns, but the process is straightforward.
Compare Agency Packages
Different agencies offer different support packages. Browse our directory to find agencies and enquire about their specific allowances and benefits.