Why Do Foster Parents Get Paid?

There are many misconceptions about fostering, finances being one of them.

Foster parents dedicate their lives to vulnerable children and young people, helping them feel safe, stable, and loved in a world that hasn’t been kind to them. They help them trust others again and provide brighter outcomes for their futures.

But do foster carers get paid for what they do? Yes, and in this article, we’ll explore why, from the costs of caring for a child to fostering as a full-time job, you’ll learn why financial support for foster parents matters.

Do foster parents pay tax

Why financial support for foster parents matters

Some people think that foster parents shouldn’t receive an allowance; they should care for children purely out of charity and the kindness of their hearts.

Although foster parents do need to be compassionate, kind, and caring, they also need financial support, and here are five reasons why.

Covers the costs of caring for a child

Raising a child isn’t free; from school uniforms and PE kits to groceries, toiletries, and more, it can quickly add up. Not only this, but many children in care have experienced a lifetime of adversity in their early years and deserve the chance to create new positive memories through enrichment opportunities.

The allowance for foster carers covers all the costs associated with giving foster children a good childhood. A childhood where they never go hungry or cold, and where their foster parents have the resources to meet their ever-changing needs as they grow.

Fostering is a 24/7 role

What do foster carers do? – They care for children who are living with trauma and may have complex physical, behavioural, emotional and educational needs. It’s an around-the-clock role; here is just a snapshot of what a foster parent does day-to-day:

  • Writing daily logs
  • School drop-offs
  • Taking children to family time arrangements
  • Ongoing training
  • Advocating for the child’s needs
  • Helping children heal from their trauma
  • Managing emotions and behaviour
  • Regular supervision
  • Collaborating with other fostering professionals, such as social workers, therapists, and education leads.

Although fostering is rewarding, it’s also challenging and not something you can simply switch off from when the clock turns five pm. That’s why at FCA, our fostering allowance is split into two: half covers the costs of caring for a child, while the other rewards our foster parents for their dedication to changing young lives.

Many foster parents can’t work full-time

Part of the role of a foster parent includes being available for school drop-offs, meetings, appointments, training, and the school holidays.

While many of our foster parents work alongside fostering, due to the demands of the role, it’s unlikely they’d be able to work full-time, unless they’re part of a couple and one foster parent is available to manage daily responsibilities.

The foster care allowance means that when someone takes in a child, whether for a few nights or until they turn 18, they can still pay rent, bills, and other expenses while they’re unable to work full-time in other employment.

Fostering is a professional role

Although you don’t need experience to become a foster parent, fostering a child is a professional role.

At FCA, our foster parents take part in ongoing training that ensures they can meet the ever-changing needs of children as they grow. Foster parents also have the opportunity to complete advanced-level training courses so they can care for children with disabilities and those seeking asylum.

Being a foster parent is not an easy role, and they deserve recognition for the skills and knowledge they work hard to gain, which in turn helps children in their care thrive. That’s why at FCA, our foster parents receive a generous fostering allowance and additional rewards as a thank you for everything they do.

Allows more people to foster

Every year, 36,000 children move into care, but the number of foster families available to care for them is in decline. If fostering payments didn’t exist, even fewer families would be able to welcome children into their homes, simply because they couldn’t absorb the additional costs.

While you need to have some level of financial security to become a foster parent, the fostering allowance means that it’s not something reserved only for the wealthy. It also prevents those with average incomes who’d make incredible foster parents from being excluded from taking up the role.

As a result, fostering is open to more people, preventing children and young people in care from being separated from their siblings, moving far from the communities they know, and having to live in residential care.

No one fosters ‘for the money’

Too often, we hear people accuse foster parents of ‘doing it for the money,’ but that couldn’t be further from the truth.

Our foster parents open their homes and dedicate their lives to the children and young people who need it most. They help them heal from their trauma, overcome disadvantage, and build successful futures, changing not only their lives, but also the lives of generations to come.

They’re patient, resilient, and have an abundance of empathy; they don’t foster for the money, they foster to transform children’s lives, and receiving an allowance enables them to do just that.

Enquire to learn more

Thinking about becoming a foster parent? When you join FCA, you’ll receive 24/7 support, extensive training, and become part of a community dedicated to helping children and young people reach the best possible outcomes.

If you are over 21, have a spare bedroom, the legal right to work in the UK and a passion for making a difference in the lives of children and young people, enquire with us today.

Call us on 0800 023 4561 or submit your details via our online form. One of our friendly advisors will have a chat with you about fostering and help you begin this life-changing new chapter.

do Foster Parents Get Paid

Financial Support for Foster Parents: What You Need to Know

As a foster parent with FCA, you will get lots of financial support while fostering a child. Though a foster parent should never be motivated by financial gain, it’s essential for anyone who’s thinking about fostering to carefully plan their finances and take the time to understand how fostering effects things including taxes, benefits and financial planning.  

Let’s answer some of the common questions about financial support for foster carers and some things you should consider when preparing to become a foster parent.

Do foster parents in the UK get paid? 

Yes, foster parents in the UK are entitled to a fostering allowance for the incredible work that they do. However, fostering is not same as a traditional job, meaning that there are various benefits, including tax allowances, which foster parents are entitled to.  

Here at FCA we offer a generous and competitive fostering allowance. By choosing an independent fostering agency , you’ll benefit from an increased rate of fostering allowance as well as a huge range of additional and ongoing support.  

foster care allowance

How much how much financial support do foster parents get? 

Foster care allowances in the UK are made up of two separate payments: 

A fee to cover expenses, which is designed to cover all of the costs associated with the care of the child you’re looking after; this covers their food, clothing expenses, activities and more.   

A professional fee, which is our way of saying thank you to you for all of your hard work in caring for children. This money is for you and your family to spend however you choose.  

The amount of money you’ll receive as a foster parent will depend upon a range of factors, including the age of the children you’re caring for and how many children you welcome into your home.  

Try out our fostering allowance calculator to get an estimation of how much you could earn when you begin fostering. 

Additional financial support for our foster parents 

When you join FCA you’ll also receive a range of unique benefits, including: 

  • Two bonus payments each year (one in the summer and one in the winter)
  • A calendar of free family events throughout the year
  • The potential to earn up to £3,000 through our Refer-a-Friend Scheme 

Our foster parents are STARS 

Our foster parents also benefit from our STARS rewards scheme. This scheme includes: 

Shine - our monthly ‘Time to Shine’ Awards celebrate the incredible contribution our foster parents make within our community, offering prizes and recognition of your achievements. 

Together – As you reach milestones in your fostering journey, you’ll be rewarded with a personalised gift or experience. 

Appreciation – We organise regular free events for our foster parents which take place across the UK to say thank you for all the hard work you do. These include lunch or afternoon tea – and there is always lots of cake!  

Reward - In addition to the summer and winter bonuses, we also offer an annual appreciation bonus from £150 up to £1,000 depending on your length of service. 

Savings – We reward all of our foster parents with access to our exclusive discounts scheme, giving you great deals on everything from your weekly shop to clothes, dining out and family theme park trips, making family days our even more fun and affordable! 

Do foster parents pay tax? 

If you’re wondering how fostering payments affect your tax, you’ll be pleased to learn that the majority of foster parents in the UK are exempt from paying taxes on the allowance they receive for fostering.  

As a foster parent, you will be classed as self-employed, meaning that you will be required to register yourself with the HMRC and file a tax return each year outlining all of your sources of income. Because of a government scheme known as Qualifying Care Relief, unless you have a large household income, you will not be taxed on your fostering allowance. Learn more about tax allowance for foster parents. 

foster care pay

Do foster parents have to pay National Insurance? 

As a foster parent, being self-employed, you will not be required to pay National Insurance contributions unless your taxable income from fostering exceeds the government threshold.  

While this may at first be seen as a bonus, we advise our foster parents to contact the HMRC and make arrangements to pay voluntary Class 2 National Insurance contributions. This will help ensure that you are entitled to a government pension, as well as other benefits in the future. A gap in paying your National Insurance contributions can affect your eligibility to receive contributory benefits. 

Can UK foster parents claim benefits? 

Though foster parents are not able to claim Child Benefit for the children they foster, you will still be eligible to claim other benefits when you become a foster parent. These benefits include PIP, Universal Credit and Child Benefit for your own children. You’ll need to contact your benefits provider to inform them that you’ve become a foster parent. 

The money you earn through fostering will not be taken into account when calculating means-tested benefits, which include Housing Benefit and Income Support. Your eligibility for other benefits, including Maternity Allowance and Bereavement Support, will depend upon your level of National Insurance contributions. 

Can I foster while working?  

Many of our foster parents choose to carry on working while fostering; in fact, fostering can be a fantastic way of developing your career. Whether you’re eligible to foster and work will depend upon how flexible your work is and if you’ll be able to fulfil all of the needs of the children in your care while working.  

Many companies now take part in the Fostering Friendly scheme, which aims to support employees who foster with benefits including paid time off for training and flexi-time opportunities. Speak with your employer to learn how they can support you to work while fostering.  

 

Could you foster? 

There are so many children up and down the UK who are waiting for loving foster homes. If you think you’ve got what it takes to become a fantastic foster parent, or if you’re curious about learning more, why not enquire with our friendly team today? 

Ready to learn more about fostering and finances? Download our guide below to understanding finances as a foster parent.