The Fostering Allowance

The fostering allowance and expenses

Sparks Foster carers receive between £500 to over £1,000 per week per child to cover the allowance and expenses. The amount is linked to the fee paid by the local authority to Sparks Fostering (which is related to the needs of the child who is being cared for). 

Allowances are linked to the needs of the children being cared for and are higher than the minimum amounts outlined by the government.

The funding provided by the local authority is allocated in this way: 

 – 50% of the fee is given to the foster carers. Foster carers use half of their funding as an ‘allowance’ to cover the resident’s costs (such as mileage, increased household bills, mileage (up to 20miles), resident’s clothing, all clubs and activities, spending money etc.). The other half of the funding (the ‘fee) is to compensate for the professional aspects of the fostering role (paperwork, attending meetings, and training). 

 – The other 50% of the local authority fee is used for additional allowances for foster carers (e.g. approval bonus, referral fees, holiday payments etc. – as outlined below); specialist training; assessment costs (including panel recruitment and training); staff and training for foster carers with no residents; staff wages; company insurances, registrations, accounts etc.; recruitment costs (including marketing); company reserves; and to meet any other additional needs of the service. All our foster carers receiving dedicated time with their social worker (1 hour per week for the foster carer and an addition 1 hour per week for each child in the home). Sparks Fostering also provides the same amount of time with a support worker. So, for example, a fostering family who looks after 3 children will receive four hours a week support from a social worker and an additional 4 hours a week from a support worker. Children with additional needs will receive additional support. In addition to this, Sparks Fostering covers additional costs for children such as counselling, therapy, or tuition. 

The ‘allowances’ portion of the foster carer payment covers increased costs/bills within the home; travel of up to 20 miles radius from the fostering home for any visits for the child (including contact with family, to a place of worship, clubs, leisure activities and professional appointments); costs for the child’s clothing, toiletries, leisure activities, food and snacks; and pocket money (as agreed with the child’s social worker). Foster carers are also expected to put aside some of the allowance for occasional large expenses, such as buying a bike for the child or paying for an expensive leisure activity (when this applies). 

Sparks Fostering also puts aside £20+/week from the allowance to pass to the child when the placement ends. 

There are generous tax deductions for foster carers, and foster carers are expected to complete tax returns (see further information in the section ‘Additional Resources’ below).

The fostering role is similar to being an independent worker in that foster carers only receive the allowance when they are looking after children. It is for this reason that part of the fostering application includes a financial assessment to ensure that fostering applicants aren’t dependent on the fostering income.