Our Guide To Foster Care Payments
- How much do we pay our foster care parents, and why are foster care payments important?
- What fostering allowances do we provide?
- Answering common questions – How do foster payments affect your tax payments, any benefits you receive and your pension?
At Changing Futures, we understand that advice on fostering can often be overcomplicated, particularly when it comes to foster payments and information about the fostering allowance. This is why we wanted to offer a comprehensive guide to foster care payments and the financial side of fostering, answering common questions and providing you with exact figures.
How Much Do We Pay Our Foster Care Parents, And Why Are Foster Care Payments Important?
Here are the exact figures of our standard weekly fee paid to foster families:
- £466.04 per child per week x 52 = £24,234.08 for those aged under 11. Plus holiday and birthday payments of £80 x 7 = £560.00.
- £513.84 per young person per week x 52 = £26,719.68 for those aged 11 or over. Plus holiday and birthday payments of £88 x 7 = £616.00.
This includes the basic foster parent weekly fee, as well as the fostering allowance. This figure also includes an additional payment to help with Birthdays and Summer holidays. Payments may be further enhanced for children and young people with more complex needs.
Shortbreak care allowance is not included in these fees, however if you don’t use your short break care, this is given to you as a lump sum at the end of the year. This figure can also be subject to change depending on certain factors. For example, in 22/23, Changing Futures offered our foster parents an additional 10.25% to help them cope with the increased pressures caused by the cost-of-living crisis.
Now, what does this need to cover? This weekly allowance is a professional fee that covers all living costs, such as food, accommodation, clothing, school uniforms and potentially pocket money for the child or young person in your care.
What Fostering Allowances Do We Provide?
Foster care allowance is a part of your fostering income that focuses on helping you out. We recognise that our foster carers put in a great deal of hard work, which is why we also offer two additional fostering allowances. First is the Birthday and School Summer Holiday Payments. Typically, this figure is around £560 to £620 a year for every young person or child in your care. The second is 18 Days Short Break Care. We understand that everyone needs a break sometimes, especially when child placements involve more complex needs. This is why we offer short break care payments in addition to our foster carers’ fees. If short break care isn’t used, we will pay you back any outstanding.
Answering Common Questions – How Do Foster Payments Affect Your Tax Payments, Any Benefits You Receive And Your Pension?
Common questions we receive from foster parents are how financial support may impact other payments and benefits. Here’s a brief rundown:
Regarding tax, being a foster parent means that you are technically self-employed, which is why you will need to register yourself with the government to avoid any penalties. You are, however, not subject to tax returns as a foster parent, so you won’t have to pay any tax on your fostering income. Fostering tax relief also includes your eligibility to claim Qualifying Care Relief.
Foster parents are eligible to claim certain benefits; however, existing benefit payments may be affected by foster carer allowances. This depends on individual circumstances, and often on the number of young people or children in your care. For clarity, it’s best to discuss your situation with one of our team members.
Foster parents earn Class 2 or 4 National Insurance credits. These count towards your state pension, but you will need to fill out a form in order to claim this. Payments into a private pension won’t be impacted.
For a closer look at our financial support offering, you can visit here.
At Changing Futures Fostering, we’re all about providing our foster parents with the support they need to really make a difference in a vulnerable child’s life. If you need any more information on the financial support that we offer or about the fostering process in general, please click here to contact us. Or, please feel free to email us at admin@changingfuturesne.co.uk or give us a call on 01429 363 127 to speak to our brilliant fostering team!