At What Point Will You Receive Your First Fostering Payment in the UK?

Taking the decision to care for a young person is one of the most empowering things you can do, but it’s natural to also think about the practical considerations. In a world where bureaucracy may feel like it is slowing things down, it’s important to understand what your options are. 

In this guide, we’re going to take a closer look at when you receive your first fostering payment so that you can plan accordingly. 

Understanding Fostering Payments in the UK

The fostering payments UK foster parents receive are structured as a weekly allowance that is designed to cover the costs of caring for the new addition to the family. The precise amount you will receive is determined by careful consideration of a variety of factors: 

• Your child’s age and individual needs 
• Your skills and experience in the fostering space
• The number of children you are looking after 

Sometimes a little extra background information can help you take the final step, in which case our guide on how to become a foster parent will help. Taking a moment to read through it at your own pace will help you to understand how everything works. 

What Can You Receive Payment For?

It’s natural to ask about foster parent pay and to think about how fostering payments in the UK work. With this in mind, here are the key areas you can receive payment for to help you provide the loving home your foster child deserves: 

Maintenance Allowance

All of the day-to-day costs such as food and clothing will be covered by the maintenance allowance portion of the payment. 

Carer Fee

Foster parents also receive a fee in recognition of the time, energy, and experience they bring to one of the most important roles anyone can take on. 

Additional Expenses

Birthdays, religious festivals, and school holidays are all examples of additional expenses that your allowance can cover. 

Utility costs

Gas, electricity, water, and phone bills can all increase once you welcome someone into your home. The system is designed so that you never have to go without as a result. 

Activities & Interests

The fostering payments UK parents receive can be spent on activities, hobbies, trips out, and even pocket money. The idea is to encourage a child to live a full and active life. 

Can you Claim any Additional Benefits? 

Yes, anyone claiming fostering payments in the UK can still claim a range of other benefits, such as:

Universal Credit
Universal Credit applications do not take into account the fostering allowance you receive as it is not classed as taxable income. If you have to convert a spare room into a bedroom, you may also be able to claim an additional bedroom under Universal Credit.

Child Disability Benefits
Disability Living Allowance and Personal Independence Payment could both be claimed if your child meets the eligibility criteria. As their foster parent, you can claim the benefit on their behalf and use it in a way you see fit. 

Carer’s Allowance
When a foster child receives Disability Living Allowance or Personal Independence Payment, you may be able to successfully claim an additional Carer’s Allowance. This is to recognise the work, time, and energy you are putting into creating a loving home.

Housing Benefits
Housing Benefit applications do not take the fostering allowance into account when you are checking whether or not your income is below the threshold. This may make it easier to access the help you need.

Council Tax Discounts
Discounts of up to 100% are offered by some local authorities. Contacting your local authority directly would be the best approach here as there are some variations and differences in the rules across the UK.

Tax Credits
Foster parents are considered to be self-employed by HMRC and so may be able to claim Working Tax Credits. Contacting the Job Centre may prove to be a more accessible way to find out your options.

A Timeline of Fostering Payments in the UK

You will receive your first fostering payment as soon as a child is placed in your home and officially becomes under your care. In many cases, this will be the day they move in. Once they are settled, you will typically receive additional payments fortnightly with the money deposited directly into your current account. 

Potential Delays to be Aware of 

The system of delivering fostering payments UK parents can rely on may be subject to error or delay from time to time. Should this happen, take a look at the support for foster parents. Here are the potential delays you need to be aware of:

Local Authority Challenges
Local authorities may experience administrative backlogs that lead to delays in your application or payment being processed. 

Inflation Calculations
Delays in financial forecasts can mean it takes a little longer for your Local Authority to calculate how much they need to increase your payments for the coming year. 

Exceptional Claims
An exceptional claim, such as a complex set of needs or an unusual housing arrangement, may delay things slightly. Keeping an open dialogue with the Local Authority will help you to manage your stress in these instances. 

Tips For Preparing Financially 

The “Be There To Care” scheme is a well-established financial incentive program that offers a weekly payment for up to 10 weeks that is designed to smooth the transition. 

Becoming a foster parent is one of the most rewarding things you can do and it makes such a difference to the lives of the young people you are helping. 

The system is set up to make sure that you also receive the help and support you need at a time when a lot of things may feel like they are changing at home. 

If you want to find out more about the fostering payments UK foster parents can receive, connect with our team now and ask anything you would like to know. They will guide you through the key details and make sure that you feel 100% ready to embark on a truly incredible journey. 

Our team can also help you select the best foster care agencies so that your journey can get off to the right start. Our goal is always to put you in control of the incredible, empowering, and life-changing journey you are about to embark on as a family.