We firmly believe that our foster carers deserve to be properly rewarded for their dedication and commitment. That’s why we offer generous fostering allowances that compare very favourably with those offered elsewhere.
We have, however, taken the decision not to try to attract carers by highlighting how much they can receive. This is because we do not believe foster carers are motivated by the financial gains of caring for children. We believe foster carers are motivated by making a positive contribution to a child’s life.
Our foster carers receive a sector-leading allowance when they have a child in placement. In some fostering households, one carer stays at home and the other has outside employment. Some of our foster carers have enjoyed the experience so much that they have made the transition to having two full-time carers at home; fostering can be life-changing not only for children, but for carers too.
The allowance is made up of a ‘reward’ element for undertaking this vital task of fostering, and a ‘maintenance’ element to ensure all of a child’s everyday needs (food, clothing, pocket money, etc.) can be met to a high standard.
Your status with HMRC
Foster carers are classed as self-employed. You will need to register with HMRC and complete an annual Self-Assessment tax return. Fostering payments are subject to special tax arrangements. That means that most foster carers pay very low levels of income tax on their fostering payments.
More information about fostering allowances and tax can be found on the HMRC website – click here to view their free online presentation