In short, yes you will! You’ll receive a generous fostering allowance when a child is in your care. You may also be exempt from tax on this allowance.
You’ll need to register as self-employed and pay NI contributions, and you might also be entitled to Working Tax Credit.
How much is the Fostering Allowance?
We really value our NFA carers and the children they care for, and we believe it’s really important for them to have a good quality of life. That’s why we provide a generous fostering allowance which is a minimum of £376 a week for each child.
With this allowance our carers are able to meet all the needs of the foster child and also benefit from help with their own living costs.
What does the allowance cover?
It’s intended to cover all the needs of each foster child including food, clothing, travel, activities, savings and so on. We provide clear guidance on how you can best spend the money so that the child has a healthy, happy and balanced life.
Will I be taxed on the allowance?
In general, foster carers are exempt from paying tax on the fostering allowance.
The exception to this would be if you are a foster carer with multiple placements or additional work that gives you an income above the current government threshold.
For tax purposes, foster carers are regarded as self-employed. You can find out more about this from HM Revenue & Customs.
Will I have to pay National Insurance?
All foster carers must register as self-employed and pay National Insurance contributions. Find out more by contacting the newly self-employed helpline.
Do I qualify for tax credits or additional benefits?
Fostering counts as self-employment, so you may be entitled to Working Tax Credit and also Child Tax Credit if you have children of your own.
Find out more about tax credits and check to see if you are eligible.
Can I claim any more benefits?
To find out if you are eligible for any additional benefits or fostering allowances, please contact the Department for Work and Pensions (DWP).