Almost all foster parents are self-employed, receiving a weekly fee for each child they look after. We pay our foster parents on a monthly basis.
Our foster parents receive £497 per child per week. Additional payments are made to support holidays, birthdays, festivals and respite.
There is tax relief on the first £405 per child per week for children under 11 years of age. The tax relief for children 11 years of age or old is £485.
There is also an annual household exemption of £19,360 in addition to this. As a result we would not expect any foster parents to pay tax on money received for fostering.
Unlike some organisations we don’t reduce the payment if you are looking after more than one child.
Further details of the taxation arrangements for foster parents are available from the government website:
Help and support for foster parents
The payment is intended to cover all the usual costs you’d expect to pay when looking after a child such as food, clothing, activities, travel and pocket money.
The weekly fostering payment does not normally affect benefits foster parents may be entitled to as it’s disregarded for benefit purposes. Benefits can be a complex area, and we provide access to specialist confidential advice.