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Making it work – Fostering allowances and finances explained.

Making it work – Fostering allowances and finances explained.

On this page we explain in more detail about fostering allowances and finances.

We would first and foremost state that although foster parents do get paid an allowance, the income should never be a motivation to foster children and young people. However, the allowance enables many people from different circumstances to be able to commit to providing foster care and a loving home to children.

You can use the information on this page as a guide to help determine if fostering is financially viable for you.

Making it work - Fostering allowances and finances explained

How much do foster carers get paid?

Foster carers get paid upwards of £400 per week. This can vary with the complexities of the child’s needs and how many children they are currently fostering.

Can you foster and work full time?

It is often possible to work part-time and depending on your personal and/or family circumstances, it may be possible to work full-time.

A foster child may need someone to be available at times during the day. Foster parents who work need either a degree of flexibility or a reliable “support network” which could be made up of friends and family.

Can you foster and work full time?

Do foster parents pay tax?

Foster parents can earn up to £10,000 tax free, and then get additional tax relief of £200 to £250 per week tax free depending on the child’s age.*

*Under age 11 you can earn £200 per week and over age 11 you can earn £250 per week before paying tax.

If you work and foster at the same time you would still pay any applicable tax on you employment salary.

The HMRC published an online training website for foster carers to learn more about their tax. Click here

What benefits can foster carers claim?

Foster carers can claim universal credits as long as they continue to meet the benefit’s criteria. The money received from fostering has no effect on the amount of benefit you may be entitled to from Universal Credits.

Foster parents can claim disability living allowance on behalf of a child who is entitled to it, and use this money to provide the extra resources the child may need.

Fostering families are exempt from the bedroom tax element of universal credits for rooms used for fostering.

Can I get a mortgage as a foster carer?

Yes! Many mortgage lenders allow you to use all of your fostering income and there are even some specialist mortgage lenders / products specifically for foster carers.

Specialist Mortgage products are available to foster carers.

Can you foster if you are in debt?

Having debt would not automatically preclude you from fostering.

Everyone’s circumstances are different so this would be discussed during the fostering assessment and approval process.

If you would like to foster but are worried your debt may affect your eligibility, don’t let this put you off. You are welcome to contact us for a fully confidential and informal discussion to get more information.

Ready to make an enquiry?

Leave you details below and we will get back to you for an informal discussion about your interest in fostering.

Or Call us on 0800 019 11 65


    For more information about Fostering and how to get started

    Please have a look at our more detailed services pages for Foster Care, Fostering Assessments, Foster Care Training

    Thinking of Fostering?
    Thinking of Fostering?

    Thinking About Fostering

    If you are interested in becoming a foster parent and have or will have a spare room in the near future, then please don’t hesitate to call us on 08000 19 11 65 or fill in the enquiry form below.

      Your region / location?

      How did you hear about us?

      Thinking of Fostering?
      Thinking of Fostering?

      Thinking About Fostering

      If you are interested in becoming a foster parent and have or will have a spare room in the near future, then please don’t hesitate to call us on 08000 19 11 65 or fill in the enquiry form below.

        Your region / location?

        How did you hear about us?