Is it True – There is No Council Tax for Foster Parents in the UK?
When people first start looking into fostering, they often come across information about the financial support available to foster parents. Alongside fostering allowances and tax reliefs, one topic that frequently comes up is council tax.
You may have heard that foster parents do not pay council tax, or that they automatically qualify for a discount. While there is some truth behind these claims, the rules are not always as straightforward as they first appear.
The support available can vary depending on where you live, which can sometimes make it difficult to understand exactly what help foster parents may be entitled to. This is especially true when reading information online, where different articles often discuss different council schemes and local arrangements.
Is There a National Council Tax Exemption for Foster Parents?
No, there is currently no national council tax exemption for foster parents in England.
This is where much of the confusion comes from. Some foster parents receive significant reductions in their council tax bill, while others may even qualify for a full exemption through schemes offered by their local council. However, these are local arrangements rather than a nationwide benefit available to all foster parents.
As a result, the support available can vary depending on where you live. For example, some councils offer a 100% council tax discount to eligible foster parents, while others may offer a partial reduction or no specific council tax scheme at all.
Although there is no national council tax exemption, foster parents do receive other forms of financial support. Foster care allowances are designed to help cover the costs of caring for a child, and there are also specific tax relief arrangements available for fostering income.
Do Council Tax Rules Differ Between Local Authorities?
Yes, and this is one of the main reasons there is so much confusion around council tax and fostering.
While some local authorities offer foster parents a full council tax exemption, others provide a partial discount, and some do not have a specific council tax scheme for foster parents at all. This means the support available can vary significantly depending on where you live.
For example, some councils offer a 100% council tax discount to approved foster parents, while others may offer a 50% reduction or a different form of financial support. In many areas, foster parents may need to apply for the discount rather than receiving it automatically.
The Fostering Network has highlighted this postcode lottery and continues to campaign for a national council tax exemption for foster parents in England, so that support is more consistent regardless of where someone lives. At present, however, council tax discounts remain largely a matter for individual local authorities.
What Other Financial Support is Available to Foster Parents?
While council tax discounts can be helpful where they are available, they are only one part of the wider financial support available to foster parents.
All approved foster parents receive a fostering allowance to help cover the costs of caring for a child. This is designed to support everyday expenses such as food, clothing, toiletries, household bills, school items, transport, hobbies, and other activities that help a child thrive.
At Family Fostering Partners, we believe fostering is a professional role. Alongside an allowance to cover the costs associated with caring for a child, foster parents also receive a professional fee in recognition of the time, skills, commitment, and care they provide.
The level of financial support a foster parent receives can vary depending on factors such as:
- The age of the child
- The number of children in placement
- The type of fostering being provided
- The needs of the child
- The level of training and experience required for the placement
Our Financial Support Scheme
At Family Fostering Partners, we also recognise that one of the biggest financial concerns for prospective foster parents is the period between being approved and welcoming their first child into their home. Some people may be considering reducing their working hours or leaving employment altogether to make themselves available for fostering, which can understandably feel like a significant step.
That is why we created our Be There to Care transition scheme. Available to eligible foster parents who are giving up work to foster, the scheme provides a weekly payment for up to 10 weeks before their first placement. The aim is to ease the transition into fostering, helping new foster parents focus on training, preparation, and being available for a suitable match without the immediate worry of replacing a regular income. It is one of the many ways we support foster parents from the very beginning of their fostering journey.
Would You Like to Learn More About Foster Care Pay?
Understanding the financial side of fostering is an important part of making an informed decision. While financial support should never be the reason someone chooses to foster, it is completely natural to want to understand how fostering allowances, fees, tax arrangements, and additional support schemes work.
At Family Fostering Partners, we believe in being open and transparent about foster care pay. Our team is always happy to answer questions and explain the financial support available, helping you build a clear picture of what fostering could look like for you and your family.
If you would like to learn more about foster care pay, fostering allowances, or becoming a foster parent, get in touch with Family Fostering Partners today. We would be delighted to talk you through the process and answer any questions you may have.
Foster Parents & Council Tax Frequently Asked Questions
Do foster parents automatically get free council tax?
No. There is currently no national council tax exemption for foster parents in England. Any discounts or exemptions are determined by individual local authorities, which means the support available can vary depending on where you live.
Can foster parents get a council tax discount?
Some local authorities offer council tax discounts or exemptions for approved foster parents. The level of support varies, with some councils offering a partial reduction and others providing a full exemption.
Do children who are fostered count towards council tax?
Children under the age of 18 are not counted for council tax purposes. This applies whether a child is living with their birth family or in a fostering household.
Does fostering affect other council tax discounts?
In some circumstances, fostering may affect eligibility for certain council tax discounts, depending on your household composition and your local authority’s policies.
