The British government stipulates that foster carers must receive between £165 to £289 per child per week (depending on the child’s age and area of the country).
The fees that foster carers get are dependent on:
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Whether the carer is fostering with the local authority or an independent fostering provider; some local authorities pay significantly less than independent fostering providers.
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The age of the child
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If the child has any additional needs, such as learning needs or disabilities (which require additional support)
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Location
Carers for older children with some level of additional need who are looked after by independent fostering providers can receive up to £750 per week per child. The average fee for Sparks Fostering carers (at the time of writing this) is £725 per week per child (£74,100 per year).
Fostering more than one child
Foster carers who look after more than one child get additional fees for every child they care for. So, for example, the foster carer may receive £750 for one child, and £675 per week for a sibling, which would be a total fee of £1,425 per week to look after the two siblings.
Additional fees
Foster carers are usually also entitled to claim for additional fees, such as approval fees, holiday and festival grants, respite fees, and training grants. The amount provided varies from provider to provider.
The full list of allowances and fees paid by Sparks Fostering are on ‘The Fostering Allowance’ page.
What the fee covers
Foster carers are expected to use the fostering fee to cover all of the basic costs for the children, including clothes, toys, clubs, activities, increased bills for the household etc. The children should experience generosity of time, compassion and money within the fostering home.
The fee that the carers receive covers the professional aspects of their work – including paperwork, attending multi-agency meetings, and regular training.
Claiming benefits
People who foster may continue to be eligible to claim benefits, such as income support, council tax reduction and housing benefit.
Paying tax
Foster carers only pay tax on earnings over £18,140 and also additional allowance for every child they look after.
See the Sparks Fostering guide to Self Assessment and Benefits for further information.