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Fostering Pay & Benefits

Fostering Pay & Benefits

Being a foster carer for children with disabilities can be a challenging but very rewarding role. We recognise the commitment our carers give to their important role and offer fostering allowances of up to £700 per week per child, in addition to our extensive support and benefits.

We have a wonderful quality of life as foster carers. We have some lovely family days out together which we would probably not do if we did not foster. Fostering keeps us young and gives us a younger outlook on life. We love it! – Christine & Allan, Foster Carers

Our foster carers are paid every two weeks, comprising of an allowance and a fostering fee

Fostering Allowance

To cover the costs of caring for a child including clothes, food, toiletries, pocket money, leisure activities and other expenses incurred in caring for them.

Fostering Fee

This is your reward element for providing foster care; effectively your 'salary' to recognise the time, skills and experience you offer to the children in your care.

"When we talk to people about fostering they tell us that they cannot afford to foster a child. Often they do not realise foster carers receive weekly allowances.

The allowances mean that we don't need to worry about money. They ensure that we can afford to provide for the children and do things together without worrying or watching every penny."

Christine & Allan

Christine & Allan

Disability Foster Carers since 2003

How it works

Self-Employment and Fostering Tax Relief

As a Foster Carer you will be classed as self-employed, so therefore you will be required to self-assess and be responsible for your own tax return. Fostering Together can direct you to resources to help you to do this. 

HMRC have some very generous allowances for foster carers in recognition of their important work, so in some cases, you may not need to pay very much tax at all. 

Tax Exemption

You will not pay tax on the first £10,000 you earn per year from fostering. 

Foster Carers have a fixed tax exemption of up to £10,000 per year from HMRC; this is unique to the fostering sector and is per fostering household

Tax Relief

You will also have some further tax relief on your earnings on top of the tax exemption. This is dependent on the age of the child or young people you provide foster care for: 

  • Children Under 11 = £200 every week 
  • Children 11 and over = £250 every week 

Let's work through some examples...

Alex has started fostering with Fostering Together to make a difference for a young person's life and to provide them a loving home. He cares for Daniel (aged 14) in a long term arrangement who has complex medical needs and learning disabilties.

Alex receives £650 per week. 
Alex is paid £33,800 per year and will only pay tax on £10,800 of his income. 

  Per Week Per Year

Paid to Family

£650 £33,800
Tax Relief

£250
(young person over 11
)

£13,000
(£250 x 52 weeks)

Fixed Tax Exemption   £10,000
Total Tax Threshold (Tax Free Income*)   £23,000
Taxable Income  

£10,800

Jane and Emma have been fostering for 15 years and transfer to Fostering Together after being impressed by their shared values and comprehensive support. They care for Lola (aged 16) in a long term arrangement who has complex medical needs and a physical disability, and Thomas (aged 8) who autism and a mild physical disability.

Jane and Emma receive £650 per week for their first child cared for and £675 per week for their second child cared for.
Jane and Emma are paid £68,900 per year and will only pay tax on £35,500 of this. 

  Per Week Per Year

Paid to Family

£650 + £675
= £1325
£68,900
Tax Relief

£450
(young person under 11
+ young person over 11
)

£23,400
(£450 x 52 weeks)

Fixed Tax Exemption   £10,000
Total Tax Threshold (Tax Free Income*)   £33,400
Taxable Income  

£35,500

Shahid and Lesley have been fostering for 2 years and are active members of the Fostering Together community. They care for siblings Caleb (aged 5) and Faith (aged 10) who have global development delay and cerebral palsy, and also Adam (aged 17) who has Epilepsy and a Visual Impairment.

Shahid and Lesley receive £650 per week for the first child fostered, £675 per week for their second child cared for and £700 per week for their third fostered child.
Shahid and Lesley are paid £105,300 per year and will only pay tax on £61,500 of this. 

  Per Week Per Year

Paid to Family

£650 + £675 + £700
= £2025
£105,300
Tax Relief

£650
(2 young persons under 11
+ young person over 11
)

£33,800
(£650 x 52 weeks)

Fixed Tax Exemption   £10,000
Total Tax Threshold (Tax Free Income*)   £43,800
Taxable Income  

£61,500

Additional Roles for Foster Carers

As part of our commitment to working together, we encourage our fostering families in their ongoing development and recognise their contributions to our common vision.

Some foster carers will hold additional roles within their fostering community and contribute to service development, including:

  • Supporting and mentoring new foster carers 
  • Providing training to other carers including supporting Skill to Foster courses
  • Advising, reviewing and evaluating our services and resources
  • Supporting in the recruitment of foster carers

 

Discover more about becoming a disability foster carer...

Whether you are new to fostering, wanting to learn more about this challenging and rewarding role, or an experienced carer considering transferring to a supportive provider which shares your principles and values, please get in touch today.

Leave your details below for a FREE fostering information guide as well as access to our 25 minute video presentation: Discover a Rewarding Career & Fulfilling Lifestyle Fostering a Child with Disabilities where you will discover a comprehensive summary of our supportive service and how we work with you to create positive futures for children in care with disabilities.

Free Information Packs