The finances of being a foster carer
We’ve broken down the finances of fostering below, but if you have a specific question, use the button below to WhatsApp our advice and help line.
Fostering a child is a rewarding experience, but understanding the financial aspects involved is essential for both aspiring and new foster carers. This comprehensive guide will help you confidently navigate the finances of foster care, allowing you to focus on providing the best possible care for your foster child.
Understanding Foster Care Allowance
The core of foster care finances is the foster care allowance, a weekly amount provided to cover the cost of caring for a foster child. At South Coast Fostering, we offer £450 per week for children aged 0-10, and £475 for those aged 11 and older.
This allowance covers all the child's needs, including food, clothing, school supplies, transportation, and enriching activities such as hobbies, sports, and outings. Approximately £100 of this allowance should be spent directly on the child each week, covering day-to-day needs and special occasions like birthdays, holidays, and religious celebrations. Our generous allowance aims to alleviate financial stress, ensuring our carers can provide high-quality care. No one fosters for the money, but we know you can't foster without it.
Navigating Tax and National Insurance as a Foster Carer
As a foster carer, you're considered self-employed for tax purposes. However, 'qualifying care relief' provides special tax rules for foster carers. This includes a tax exemption for all but the most specialised foster carers, meaning it is very unlikely that you would have to pay tax, however you would need to do an annual tax return.
Considering the Direct and Indirect Costs of Fostering
While the fostering allowance generally covers direct costs like food, clothing, and transportation, there are indirect costs to consider as well. These may include additional utility expenses, household item wear and tear, and potential upgrades to your vehicle or home.
At South Coast Fostering, our generous allowance should cover these costs, but careful planning and budgeting are essential to effectively manage your finances.
##Do all agencies pay the same?
Believe it or not, there can be a substantial disparity in the payment received by foster carers depending on which IFA they are working with. At South Coast Fostering, we offer a fair, consistent payment scheme without any deductions, which distinguishes us from other agencies that may pay up to £100 less and reduce payments when fostering siblings or multiple children.
Conclusion
Embarking on a foster care journey is rewarding but challenging. Understanding the financial aspects of fostering is key to providing the best possible care for your foster child.
South Coast Fostering is dedicated to supporting our carers through a generous allowance, fees, and comprehensive guidance. With the right support and understanding, you can confidently navigate the financial aspects of fostering and focus on providing a safe, nurturing home for a child in need.
Remember to compare fostering agencies to find the one that best suits your needs. Armed with the right information and the ideal agency, you can begin your fostering journey with confidence.
Allegations
It’s estimated that 30% of foster carers will face an alligation at some point during their foster carer, so it’s worth understanding what they are and the impact they might have.
Fostering & Finances
Though it may be difficult, talking openly about finances is crucial. At our organisation, we prioritise transparency, including when it comes to the fees and allowances that we provide to our carers.
Who Can Foster
Fostering is possible for the majority, yet a few requirements may be restrictive. As such, understanding these prerequisites is advantageous.
How long does a placement last?
Placements can last from over night to many years, so we’ve tried to set out what factors influence the length of a placement.
How many children can I foster?
This is an important question to ask, as it will be one of the things which are discussed during your assessment
What children need fostering?
There are a lot of myths about the kinds of children which need fostering, rather then imagining the worst,
Can I choose the gender and age of the child?
This is a really common question to have, and more or less the answer is yes, however, with some caveats.
What's the assesment like?
A fostering assessment is a big bit of work, so it’s worth understanding it before starting.
Will I be supported as a foster carer?
It’s really important to understand the level of support you will receive, this isn’t the same across all agencies.
Time to book a call with us
Our Recruitment Team Would Love to Have a chat
To begin the journey of becoming a foster carer, the initial step involves an informal 15-minute call with us. During this call, we provide an opportunity to answer any specific questions you may have about your situation, whilst helping you determine how fostering fits in with your life.
