Money should never be the reason to foster. But it should not be a barrier either. Here is a clear, honest breakdown of what foster carers in the UK are actually paid, what the payments are designed to cover, and what you need to know about tax.
The two parts of your payment
Foster carers receive two distinct elements in their payments:
The fostering allowance
The fostering allowance is designed to cover the costs of caring for a child: food, clothing, transport, activities, school trips, toiletries, and the additional household costs. It is not income. It is a reimbursement of expenses, and it is not taxable.
The fostering fee (professional fee)
The fostering fee is your payment for the professional work of fostering. It reflects your skills, experience, and the nature and complexity of the placements you provide. Thanks to HMRC's Qualifying Care Relief scheme, most foster carers pay little or no tax on their fostering income.
Typical rates with Epiphany Foster Care
- Standard foster care (under 5): from around £450 to £550 per week total
- Standard foster care (5 to 11): from around £500 to £620 per week total
- Standard foster care (12 to 15): from around £550 to £680 per week total
- Standard foster care (16 and over): from around £580 to £720 per week total
- UASC placements: enhanced rates reflecting additional complexity, typically from £750 to £950 per week
- Short breaks / respite: daily rates apply
These figures are illustrative. Your actual rate will be confirmed during assessment and set out in your Foster Care Agreement. Rates are reviewed annually and increase with your experience.
Tax and National Insurance
Most foster carers benefit from HMRC's Qualifying Care Relief (QCR) scheme. Under this scheme, the first portion of your fostering income is entirely exempt from tax. The threshold is made up of a fixed household amount of £18,140 per year, plus a weekly amount per child (£375 per week for children under 11, and £450 per week for those aged 11 and over).
In practice, the vast majority of foster carers pay no income tax on their fostering income at all. You will be treated as self-employed for tax purposes, which has implications for National Insurance and pension planning. We can point you towards accountants who specialise in foster carer tax.
What the allowance is meant to cover
- Food and household costs
- Clothing and footwear (including school uniform)
- Toiletries and personal care items
- Activities, clubs, trips, and hobbies
- Transport to school, contact visits, appointments
- Pocket money, gifts at birthdays and Christmas
- Holiday costs
Additional payments
- Settling-in grants for new placements to cover initial equipment and clothing
- Holiday allowances to support family breaks
- Festive allowances at Christmas
- Enhanced rates for sibling groups, children with complex needs, or particularly challenging periods
- Skills-based enhancements as you gain experience and qualifications
Is fostering income enough to live on?
For many carers, fostering can be a main or significant source of household income, particularly for those who provide full-time care to one or more children. Some carers combine fostering with part-time work, particularly for school-age placements.
What we will not do is oversell the financial side. Fostering requires significant time, energy, and commitment. The payments are designed to make that commitment sustainable, not to generate profit. The real reward is the difference you make to a child's life.