We firmly believe that our foster families 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, decided not to try to attract people by highlighting how much foster allowances they can receive. We do not believe foster parents should be motivated by the financial gains of caring for children. Above all, great foster parents are motivated by making a positive contribution to a child’s life.
Our foster parents receive a sector-leading fostering allowance when they have a child living with them. In some fostering households, one foster parent stays at home and the other has outside employment. However, some of our foster parents have enjoyed the experience so much that they have made the transition to having two full-time foster parents at home. Fostering can be life-changing not only for children, but for you too. Learn more about what makes a great foster parent here.
What is a fostering allowance?
The allowance is made up of a ‘reward’ element for undertaking this vital task of fostering. The other part is a ‘maintenance’ element which ensures all of a child’s everyday needs (food, clothing, pocket money, etc.) can be met to a high standard.
Your status with HMRC as a foster parent
Foster parents 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. Therefore most foster parents 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
Get in touch
Already a foster parent?
We’d love to hear from experienced foster parents too. Find out more about transferring fostering agencies.