Most people put themselves forward as foster carers because they want to provide stability, care, and support to children who cannot safely remain with their birth families. Nevertheless, anyone considering fostering wants to know how the financial arrangements will work and whether the payments will be enough to meet the needs of the children placed in their care.
Foster carers generally receive financial support that comprises two separate elements: an allowance intended to cover the child’s everyday living costs and, in many cases, a professional fee recognising the foster carer’s skills, experience and responsibilities.
Do foster carers get paid?
When people ask do foster carers get paid, they are often imagining a salary similar to conventional employment. In reality, fostering payments are structured differently because foster carers are not employees of a local authority or fostering agency. Instead, most carers receive payments designed to achieve two distinct purposes.
The first is the Maintenance Allowance, which is intended to meet the child’s day-to-day needs such as food, clothing, school uniforms, toiletries, household bills, travel, hobbies, birthdays, Christmas presents, and other ordinary expenses associated with raising a child.
The second payment is commonly known as the Professional Fee, Reward Payment, or Skills Payment. This element recognises the foster carer’s experience, training, availability, and the demanding nature of the role. It is this payment that provides an income for many foster carers, although the amount varies considerably depending on the fostering organisation and the type of placement.
It is important not to confuse the allowance provided for the child with the payment recognising the foster carer’s professional commitment.
The difference between the Maintenance Allowance and Professional Fee
The Maintenance Allowance exists to ensure that the child has everything they reasonably need while living with their foster family. It is not intended to provide financial gain to the foster carer, and simply reimburses the ordinary costs of caring for the child. These costs naturally increase as children grow older, which is why allowance rates are usually linked to age bands.
Professional Fees are entirely separate. Not every fostering arrangement includes the same fee structure, but many experienced foster carers receive additional payments reflecting:
- Their level of training and qualifications
- The complexity of placements they accept
- Specialist therapeutic skills
- Emergency availability
- Years of fostering experience
Some specialist placements involving children with complex emotional, behavioural or medical needs attract significantly higher professional payments because of the greater responsibilities involved.
Foster care allowance national minimum explained
The government publishes guidance each year regarding the foster care allowance national minimum. These figures represent the minimum weekly amounts local authorities should pay to cover the child’s maintenance costs.
Although the precise figures vary according to the child’s age and where they live in the UK, the National Minimum Allowance generally falls within the region of approximately £170 to more than £300 per week.
These minimum amounts are designed to reflect the increasing costs of caring for older children and teenagers. Local authorities remain free to pay higher amounts, and many do.
It is important to remember that these published figures relate to the child’s living expenses rather than the foster carer’s professional income. Many fostering organisations add separate fee payments on top of the allowance, particularly where carers have completed additional training or are providing specialist placements.
Understanding fostering pay per week
Many people researching fostering ask about fostering pay per week, hoping to identify a standard national figure. Unfortunately, there is no universal weekly payment because several factors influence what a foster carer receives:
- The child’s age: Older children attract higher maintenance payments because their living costs are greater.
- Type of placement: Emergency placements, parent-and-child placements, short-break fostering, therapeutic fostering, and long-term placements may each attract different fee structures.
- Location: Different local authorities set different rates above the National Minimum Allowance, while independent fostering agencies frequently operate their own payment scales.
Consequently, fostering pay per week may differ substantially between two foster carers performing apparently similar roles in neighbouring areas.
Independent fostering agency vs local authority – understanding the differences
The discussion around independent fostering agency vs local authority often centres on support, training, and financial arrangements.
Local authorities recruit foster carers directly to meet the needs of children within their own area, while independent fostering agencies, often referred to as IFAs, work alongside local authorities by recruiting and supporting foster carers who can then care for children placed through contractual arrangements.
From a financial perspective, independent fostering agencies sometimes offer higher professional fees than local authorities. However, comparing payments alone can be misleading. Support services, respite arrangements, therapeutic input, training opportunities, out-of-hours assistance and supervision should all form part of any comparison.
The independent fostering agency vs local authority decision should therefore consider the overall package rather than simply asking which organisation pays more.
Is fostering allowance taxable UK?
The UK operates a specialist scheme called Qualifying Care Relief, which recognises the important public service provided by foster carers. Rather than treating fostering payments like ordinary employment income, the rules provide generous tax relief.
Broadly speaking, foster carers benefit from a fixed annual tax exemption together with additional tax relief calculated for each week a child is placed with them. In many cases, this means that foster carers have no income tax to pay on fostering payments at all.
However, circumstances vary, and carers with multiple placements, specialist fostering arrangements, or significant additional income should seek independent tax advice where appropriate.
Although many carers ultimately have no tax liability because of Qualifying Care Relief, records should still be maintained accurately and tax return obligations should not automatically be ignored.
Financial planning before becoming a foster carer
Although fostering provides financial support, it should not automatically be viewed as a guaranteed income replacement.
Placements may not always be continuous because some children stay only briefly, and the availability of suitable placements depends upon local demand. Prospective carers should therefore prepare realistic budgets before relying solely upon fostering payments.
It is also worth considering the practical implications of fostering on employment. Some carers continue working alongside fostering, while others reduce their working hours or leave employment altogether, particularly when caring for younger children or children with significant additional needs.
Every fostering arrangement is unique, and payment structures can differ significantly depending on the provider, the child’s needs, and the type of placement involved. Obtaining clear information before beginning the assessment process is therefore essential.
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