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.
Foster carers and prospective foster carers sometimes say they feel uncomfortable asking about money. But we’d like to reassure you that it’s fine to ask about pay and allowances – in fact, it’s very important.
We want you to feel financially secure when you’re a foster carer with us, so you can focus your attention on providing great care and enjoying a good quality of life. That’s why foster care pay from National Fostering Group is far higher than the government’s recommended weekly allowance.
Here are some important things to remember about foster carer payments:
When I became self-employed, I was worried I’d have to save every single receipt and pay an accountant to file a complicated tax return every year. But it’s not like that at all. You don’t have to keep receipts and it’s easy to submit your tax return yourself.
The fostering allowance is intended to cover all the needs of your foster child. As you spend time with your foster child, you will know what’s best for them. For this reason, we don’t tell you how to spend your fostering allowance, and instead give you the freedom to choose how to spend the money so it supports what’s best for your family life.
The fostering allowance you receive has two components – your professional fee and money to cover the child’s needs.
There is no single, fixed fostering allowance because foster carers have varying skills and experience. The amount you receive also depends on the type of foster care provided (for example, if a foster child has complex needs), the child’s age, and which area of the UK you are currently residing in.
You will receive your fostering allowance on a weekly basis. This way, you’ll have a regular income making it easier to manage your day-to-day expenses.
You don’t have to pay self-employed National Insurance Contributions if you’re a foster carer of retirement age. I mistakenly paid them for two years before I realised!
Foster carers are regarded as self-employed, which means they generally won’t be subject to income tax. This means your fostering allowance is the salary equivalent of a £30,000 role before tax. Foster care pay doesn’t affect state benefits. However, it’s difficult to estimate the exact figure you’ll get paid for fostering. You might earn more than the £24,500 average, or you might earn less.
This is because foster care falls under the Qualifying Care Relief (formerly called Foster Care Relief) tax scheme, which means you won’t usually have any taxable profit.
While foster care payments are generally not taxed, there are some situations where this is not the case. This typically occurs when certain factors have been taken into consideration, such as the total amount of foster payments you receive and any additional sources of income you may have alongside foster care payments.
At the end of each tax year, you will need to perform a simple calculation to determine your tax threshold for that year, and whether you have exceeded it. If your earnings surpass this threshold, the excess is considered profit, which may require you to pay tax.
If this is new to you, don’t worry – as a foster carer, your self-assessment tax returns are designed to be straightforward. We also offer a comprehensive guide to help you understand if you owe tax on your foster care pay. It only takes three easy steps to assess your situation, and if you’re still struggling, we are here to provide the support you need.
Your foster care pay depends on the specific fostering type you choose, with each type requiring a unique set of skills and expertise. This is why pay for foster carers in the UK can vary. For instance, carers who foster siblings earn more than carers who foster a single child. While other types may offer slightly more or less, we always ensure our carers receive sufficient financial support to provide their foster children with the best possible quality of life.
Your fostering allowance won’t affect most state benefit payments because fostering counts as self-employment. This means you may also be entitled to Working Tax Credit or Child Tax Credit.
All foster carers in the UK must register as self-employed and pay National Insurance Contributions. You do not have to pay National Insurance after you reach State Pension age unless you’re self-employed and paying Class 4 contributions. Don’t worry if you haven’t been self-employed before, as a foster carer it’s very simple and we offer you all the support you need.
We do all we can to provide you with the financial security of a regular income between placements. This is in the form of a weekly Bridging Retainer Payment, plus another payment made at the start of your next placement.
If you would like more information, please fill out our enquiry form. If you ask for a call back, a fostering advisor from your local National Fostering Group team will get in touch to explain more about how to become a foster carer, and answer any questions you have about foster care pay.
