Breaking Down Fostering Payments UK: The Simple Guide for First-Time Carers

Getting to grips with the fostering payments UK foster parents can expect to receive may seem like a daunting process, but it doesn’t have to be. We’ve created a simple guide that will talk you through everything you need to know about the seemingly complex world of foster parent pay. 

Have a quick read, note down the key points, and then feel free to reach out and ask an expert from our team if you need to know more. When you want to embark on the career of a lifetime and make a real difference to young people, we’ll always be by your side. 

What  Are Fostering Payments?

The fostering payments UK foster parents receive are designed to provide a weekly allowance that will comfortably cover the costs of raising a child. Taking in a child and caring for them is a beautiful thing to do, and the system is set up to ensure that you will never face hardship for doing so. 

There are a number of fostering services that will offer a series of fee payments throughout the year that are paid on top of the regular weekly allowance. While there can be a lot of regional variation due to different policies across various local authorities, the idea is to recognise your time, experience, and specialist skills. For example, an additional fee payment could be awarded if you are fostering a child with additional needs. 

Who is Entitled To Foster Care Pay?

Any parent who is approved to foster in the UK will be awarded fostering payments. Foster parents will be able to claim the payments from the relevant fostering service and have them paid directly into their bank account on a weekly basis. 

While performing your background research, it’s important to be aware that foster parents are not awarded a standard flat-rate payment. As well as varying across different local authorities, the size of the foster care pay will be influenced by things such as: 

• Your specific skills and how they can help a child to flourish in a new setting 
• How many years of experience you may already have as an approved foster parent 
• A child’s age and their specific individual needs that need to be supported 
• Whether or not you are fostering more than one child at any given time

That said, there are a series of national minimum rates that ensure you can provide the standard of care you would expect and the child deserves.

Fostering Payments UK: What Are They For?

The fostering payments UK parents are awarded are designed to cover many of the everyday essentials that are involved with raising a child. These payments form part of a network of support for foster parents and they can be used for things including but not limited to: 

• Any food required for a new child who will be living with you and your family 
• Providing regular new clothing for a growing child including their school uniform 
• Any toiletries that are needed so that you can teach them about self-care 
• Other expenses and incidentals that are part and parcel of raising a child 

While the foster payments are designed to provide a meaningful level of support, it’s only natural to ask how receiving them may impact the rest of your household finances. 

Can Foster Parents Still Earn Other Income?

Yes, foster parents can continue to earn other income via a full-time or part-time job when they receive fostering payments. This is because HMRC recognises the payments as a form of self-employment income that includes a tax exemption. 

However, because of this designation, you will have to register for self-employment with HMRC and remember to file an annual tax return by the end of January each year. For doing so, you will be able to claim a 100% tax exemption for the first £19,360 of fostering income you receive, additionally, the first £485 (£405 if a child is younger than 11) that you receive each week will be tax free. 

The Impact of Foster Care Pay On Benefit Entitlement

Claiming financial support to help raise and care for a foster child is designed to work for everyone in your household. This means that a fostering allowance cannot affect your entitlement to any form of state benefit, including Carer’s Allowance and Disability Living Allowance for your birth child.

Are Fostering Payments Means Tested?

No, fostering payments are not means tested, meaning that your household income has no impact on your eligibility. Regardless of how much you and your partner earn as a household, whether through salaried employment, self-employment, investments, or a combination of all three, the fostering payments remain unchanged. 

This is because the needs of the child will always need to be met, with the level of financial need being determined by a child’s individual circumstances. The system has been set up to treat all foster families equally, regardless of how affluent they may be, and that’s why income is not factored in but the following factors are: 

• The location of the foster home and any modifications that may be needed
• Any additional needs a child may have  in terms of physical and mental health and educational support 
• The type of fostering you chose to undertake, whether it’s long term, short term, or parent and child fostering.

This is the only way that children from all walks of life can get the loving, caring, and safe home they need to flourish. 

When Will You Receive the First Foster Care Pay?

At Family Fostering Partners we pay our fostering allowances on a fortnightly basis. This ensures that you are free to concentrate upon helping a child feel settled and comfortable without needing to wait for the end of the month to be paid. 

As well as the standard  fortnightly payment, you may also be able to receive a series of additional payments for things such as: 

• Respite care to help you support your own self-care routine 
• Our Be There To Care scheme which is designed to assist those looking to give up work to foster. 

The system is designed to be on your side from day one, all so you can focus on making a difference in the lives of young people who deserve a caring foster parent just like you. 

If you would like more information regarding fostering payments, our experts are always available. By getting all of the information you need from a single point of contact, you can make the right decision and embark on a new career that will help you make a real difference in your local community. Contact us today.