This article is written by Martin George — Director of Quality Assurance and Compliance, Responsible Individual and Agency Decision Maker at New Chapters Fostercare. Martin draws on extensive experience in children’s social care, fostering, and therapeutic practice, including his own first-hand experience as a foster carer.
Fostering a child who has been subjected to poor parenting at best and/or some form of abuse at worst is a challenge and needs remuneration in recognition of the work that is required of a foster carer. As I know from my own experience as a foster carer, there is no doubt that seeing a child prosper is a significant reward in itself — but day-to-day care of any child is financially demanding.
The pay that a foster carer receives is split into three elements (described in more detail below) and comprises a salary (recognising the work a foster carer does) and maintenance (money that covers the day-to-day expense of raising a child). Within the maintenance payment there is also an allowance to cover respite (explained in more detail below).
Being a foster carer is an incredibly rewarding and fulfilling experience and offers a traumatised child the opportunity to experience safe family life. Most foster carers embark on the fostering journey for reasons other than financial reward. At New Chapters we held 1:1 consultations with all our foster carers during 2024, and most expressly stated that money is not the driving force that leads them to become foster carers.
At New Chapters we feel pioneer values are important, as they aim to overcome challenges and look at new ways of doing things. It is important though to understand how foster care pay and allowances will work. You can also read the Fostering Network’s guidance on foster carer finances alongside this article for a broader picture.
Foster carers who are approved with an independent fostering agency (IFA), such as New Chapters Fostercare, are paid on a monthly basis. It is important to note that foster carers are only paid when they have a foster child living with them — so it is wise to consider your financial stability before proceeding.
The amount that a foster carer receives will vary depending on the age of a child and any specific and/or complex needs the child may have. As mentioned above, the pay is split into three elements:
Foster carers with New Chapters Fostercare begin receiving pay from the day a child moves in with them. Payments are made monthly for the duration of the placement. Foster carers receive a monthly statement regarding their pay as well as a year-end statement, which can be used for tax purposes. These records can also support applications for financial products such as mortgages, helping to demonstrate consistent income and self-employment eligibility.
Mileage can be claimed for certain journeys (detailed in the agency policy on carer pay), and this is paid at a rate of 45 pence per mile.
As well as the allowances detailed above, New Chapters Fostercare pays an additional amount for birthdays and relevant festive celebrations (e.g. Christmas, Diwali etc.) for every foster child living with them.
As stated earlier, the amount a foster carer is paid will vary depending on the age of a child and any specific needs — but the monthly pay will increase incrementally to circa £2,000 per child.
One of the positives of being a foster carer is that you can claim tax relief. The Fostering Network explains how Qualifying Care Relief (QCR) works, and Gov.uk also has a guide to foster parent tax arrangements.
QCR allows foster carers to earn well above the usual tax threshold before they are required to pay tax on any income gained through fostering. This is an important factor to take into consideration when thinking about being a foster carer — because although you may be able to earn more in other jobs or professions, it is unlikely those roles will offer the same tax benefits.
As a foster carer, you will be self-employed, so it is important to maintain accurate records of when a foster child starts and ends their time with you, as this is information that HMRC will need to accurately assess the amount of tax relief you will be given.
Some foster carers may be eligible for other financial support. For example, you may be eligible for Universal Credit, and the fostering allowance is not taken into consideration when assessing your eligibility.
If you are caring for a child with a disability, you may also be entitled to Carer’s Allowance. Certain criteria will need to be met — such as providing at least 35 hours of care per week.
It is also important to remember that foster carers can accumulate National Insurance credits, which contribute to their State Pension.
The short answer is “yes”. Careful thought needs to be given to this though, as your employer will need to understand that meeting the needs of a foster child must be the priority. They will need to provide enough flexibility to respond to unexpected circumstances that require you to be with the foster child.
Having a job alongside fostering is increasingly important in the current economic climate and also gives a degree of financial security when there is no foster child living with you. At New Chapters we have many foster carers who balance fostering with other employment and still manage to meet the needs of the children living with them.
If, after reading this, you are interested in exploring things further, please contact us today on 01952 463251 and ask to speak to Craig Walton.
Your data will be used in accordance with our Privacy Notice
