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Foster care pay and allowances

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 is very important.

How much do foster carers get paid?

Once we’ve approved you to provide paid foster care, you will receive foster care pay (known as a fostering allowance) in the region of £22,000 a year. For almost all foster carers, this will be tax free and will not affect benefits you’re currently receiving. You will also be eligible for our Bridging Retainer Payments.

Examples of foster care payments

  • Emma fosters one child, aged six. Emma receives £401.60 per week.
  • Tom and Sarah foster a young unaccompanied asylum seeker, aged 15. They receive £407.50 per week.
  • Dev fosters a mum and her baby girl, aged three months. Dev receives £783.74 per week.
  • Ann and Selena foster two sisters, aged seven and eight. Ann and Selena receive £833.10 per week.

I was pleasantly surprised when they told me fostering allowance wouldn’t have an impact on my Housing Benefit. And I don’t have to pay tax either.

Jayne, National Fostering Group Foster Carer

Overview of foster care pay

Some of our foster carers give up their jobs to care for children, so the foster care pay they receive is vital to support them and their household. And, while money is not the main motivation for people to become foster carers, nevertheless our foster carers perform a really important role, so it’s right that they are properly remunerated.

If you’re considering going into paid foster care, this section will explain about pay, allowances, tax, National Insurance, state benefits and pensions.

How fostering pay works

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.

We want you to have peace of mind. We recognise that foster caring can sometimes be stressful. It’s important not to have money worries so you can care for the children in the way you’d like to and also look after your own wellbeing.

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.

Megan, National Fostering Group foster carer

What your foster care pay covers

The fostering allowance you receive has two components – your professional fee and money to cover the child’s needs.

Your professional fee recognises your skills, training and experience as a foster carer. It is the payment we make to you for providing first class care with the National Fostering Group.

It’s important the fostering allowance also covers the foster child’s physical needs, including food, clothing, travel, activities, savings and so on. We provide clear guidance on how best to spend this money so the child has is supported to have a healthy, happy and balanced life.

This is why there is no single, fixed fostering allowance. It differs because foster carers have different skills and different experience. The amount you receive also depends on the type of care provided (for example, if a foster child has complex needs), the child’s age, and whether you are fostering in London and the South East or the rest of the UK.

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!

Jack, National Fostering Group foster carer

Pay and the different types of foster care

Once approved, you’ll receive foster care pay (known as a fostering allowance) in the region of £22,000 a year. For almost all foster carers, this will be tax free and will not affect benefits . However, it’s difficult to estimate an exact figure you’ll get paid for fostering. You might earn more than £22,000 or you might earn less.

Pay and the types of foster care

Tax and foster care pay

In general, foster carers’ pay isn’t subject to Income Tax. For tax purposes, foster carers are regarded as self-employed. If this is all new to you, don’t worry – as a foster carer, your self-assessment tax returns are straightforward. We will offer you all the support you need.

Tax and foster care

Foster carers and National Insurance

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 haven’t been self-employed before, as a foster carer it’s very simple and we offer you all the support you need.

Being a Self-employed Foster Carer

Bridging Retainer Payments between foster care placements

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.

Bridging Retainer Payments

Foster carers, state benefits and pensions

Your fostering allowance won’t affect most state benefit payments. Because fostering counts as self-employment, so you may be entitled to Working Tax Credit and also Child Tax Credit.

Foster Carers, State Benefits & Pensions

Need more information about foster care pay?

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.

Start your fostering journey with National Fostering Group

  • We have fostering agencies all across the UK
  • Over 3,000 carers already part of our family
  • Benefit from our local support groups and social workers