Find out if you could be a foster carer
In a few simple questions, you’ll know if you’re suitable to apply to become a foster carer.
We understand that fostering is a huge commitment to make for your family and it may mean you leaving full-time employment to enable you to give the time needed to support the child placed with you. This is why we pay generous weekly allowances, to help you with the usual expenses of caring for a child and also in the way of an income to compensate for your hard work and dedication in providing a child with a stable family environment.
How much is the fostering allowance and what is it for?
We pay a generous weekly allowance to reflect how much we value our carers and the children they care for. We believe it is important for the children to have a good quality of life and wherever possible the same opportunities and experiences as other children in your family.
As well as including a professional fee for you, the allowance is intended to cover all the needs of the children in your care including food, clothing, travel, hobbies and sports, family activities, savings and more. We will guide how you can best spend the money so that a child has a healthy, happy and balanced life but we also want you to have the freedom to use the money to support that child in joining in with your normal family life. We therefore won’t dictate to you about what you spend for birthdays, Christmas and holidays as we know that your family will have their own priorities. We want you to be able to treat a looked-after child the same as you would your own children.
The minimum weekly fees payable are:
Single placement £400 per week
Sibling placement £400 per week, per child
Mother and baby £555.17 per week
These fees are reviewed annually and may differ for an experienced transferring carer.
It is important to note, this amount is only paid when you have a child in your care, not when you are between placements. We are unable to guarantee a placement at all times so there may be gaps when you do not have a child living with you and therefore times when no allowance is payable.
Self Employment and other benefits
As a foster carer, you are classed as self-employed for tax and national insurance purposes, so you need to register with HMRC. You may also be able to claim a range of benefits.
Once you are approved you will be given a starter pack with advice on how to go about registering as self-employed. You can also gain further support and advice from The Fostering Network. As an approved carer with Alpha Plus you will be entitled to free membership with them and you can visit their website at www.thefosteringnetwork.org.uk.
As a foster carer, you will be approved rather than employed by us, and this status has a particular effect on means-tested benefits. In the main fostering allowances, when a child is placed with a foster carer, are disregarded when calculating welfare benefits. Alternatively, foster carers may be able to claim Working Tax Credit because fostering is regarded as ‘work’ by HMRC when they have a child in placement. You will need to contact your local benefits office and relevant agencies to discuss your individual circumstances.
Will I be taxed on the allowance?
In general, foster carers are exempt from paying tax on the fostering allowance. The exception to this rule would be if you have a number of children living in your care or additional paid employment that would then give you a financial income above the current government guidelines.
To find out more about fostering finances you can visit www.gov.uk or call the newly self employed helpline on 0300 200 3500.
A fostering allowance example
If you have one child in placement for 52 weeks of the year you will receive in the region of £24,500 total per year.
If you have 2 siblings in placement for 52 weeks of the year, as an example, you will receive a minimum £43, 300 per year.
It is also worth noting that higher allowances may be payable to ensure the cost of any additional needs a child might have will be accounted for. For example, autism, disability or specialist behaviours.
Dealing with the cost of living crisis in 2024
The cost of living has risen in recent years due to several factors, and it isn’t a surprise that people are worried about their finances. However, if you are a foster carer, or are looking to become one, you’ll be glad to know that your finances are stable, and will be more than enough to support your foster child with the upbringing they deserve.
Specifically, the average cost of raising a single child in the UK per year (as of 2022) is £12,400, or £1030 per month, and the fostering allowance is in the region of £24,500 per year for a single placement.
With that being said, we understand that you may want to supplement the fostering allowance you receive. In a financially difficult and uncertain time, there are a few things that you can do to ensure you can obtain extra finances:
Secure a part-time job – There are many part-time jobs available that require little experience. On the lower end, a delivery driver can earn on average £7.34 per hour, a sales assistant job pays £8.28 per hour, and on the higher end, a tutor can earn £16.88 per hour.
Budgeting – By carefully outlining your expenses and setting a detailed budget, you can identify where you can save a cost and instead put the expense towards something you deem as more valuable.
Open a savings account – Savings accounts offer higher interest rates than your typical bank account. By depositing a little and often into the savings account, you’ll slowly build up an accumulation of savings. Over time, there’ll be a substantial amount that you can put towards something sentimental like a holiday with your foster child.
Although the cost of living is easing, there are no signs of it currently bouncing back in a hurry. And even though these are useful tips to give you some extra finances, the most valuable thing you can earn is the time with your foster child and the memories that creates.
If you’re struggling to make ends meet for the lifestyle you have in mind for you and your foster child, we offer plenty of support to guide you through some ways you can provide for your foster family.
