Fostering allowance
Receive up to £25,061 of tax-free allowances for each child in your care
We know that the financial side of things isn’t what motivates you to foster, but we do recognise just how important it is that you’re financially secure – for you, your family and the children in your care.
We also understand that discussing allowances may feel uncomfortable, but we assure you that it’s perfectly okay to ask us anything about foster care pay. We know how crucial this information is.
If you have any questions, please don’t hesitate to reach out to our friendly fostering advisors at 0800 369 8513 or complete an online form, and we’ll get back to you.
How much do foster parents get paid?
Foster parents receive a fostering allowance, which varies based on factors such as the agency or local authority they foster with, the age and number of children in their care, and their fostering experience.
At Orange Grove, we’re proud to offer a generous financial support package for foster parents that significantly exceeds the recommendations set by The Fostering Network, and many of the fostering providers across the country.
Our fostering allowance package includes:
- A fostering allowance up to £25,061 for each child in your care (around £2,088 each month). For most foster parents, this will be completely tax-free, making it equivalent to a £30,000 role before tax.
- Additional allowances for birthdays and religious festivals for the children in your care.
- Generous mileage allowance for extra travel involved in caring for a child.
- 2 weeks of paid respite each year.
- Free membership to FosterTalk.
- Access to hundreds of discounts through our rewards platform.
- Exclusive refer-a-friend scheme where you could receive up to £3,000 for each family you successfully refer to us.
Download our finance guide today
Discover everything you need to know about fostering allowances, tax relief, benefits and pensions by downloading our Guide to Fostering Finances.
Foster care pay examples
Luke & Ben
Foster a 7-year-old. They receive £447 per week.
Annette
Fosters a 14-year-old. She receives £478 per week.
Safia & Krish
Foster two children, aged eight and ten. They receive £893 per week.
Joan
Fosters a parent and her newborn baby. She receives £736 per week.
Our foster care allowance breakdown
At Orange Grove, we have different foster care pay scales depending on your experience, training and the age of the children in your care.
Discover our fostering payments below...
New to fostering
You'll start your fostering career with Orange Grove on our Grade 1 payment tier until you've completed 12 months of fostering and your core training.
Depending on the age of the child in your care, you'll receive between £371 and £458 per week, per child.
1 years' experience
Once you've completed 12 months of fostering children, plus your Training and Development Standards and all core training, you'll move to our Grade 2 payment tier.
You’ll also receive this payment grade if you’re transferring from another fostering agency or local authority with 12 months of fostering experience and have previously completed the Training and Development Standards.
Depending on the age of the child in your care, you'll receive between £381 and £468 per week, per child.
3 years' experience
Once you’ve been fostering for 3 years, you can apply to become a Grade 3 foster parent, where you'll receive between £391 and £478 per week, per child.
How do fostering allowances work?
As a foster parent, you’ll receive an allowance for every night a child stays in your home. The amount you receive for each child will vary depending on the local authority or fostering agency you choose to foster with.
While the amount you receive may differ depending on your fostering provider, allowances generally work the same and comprise of the following parts:
Child’s Allowance
To cover the cost of caring for a child, including food, clothing, personal care items, hobbies and activities, travel expenses, and more.
Foster Parent Payment
To financially reward you for your hard work, experience, and unwavering dedication. This professional fee also means that you can focus on what truly matters – achieving great outcomes for the children in your care – without financial worries.
You may also receive additional payments for expenses, such as extra mileage, however, these will be agreed upon with the local authority before you welcome a child into your home.
Allowances for siblings and additional children
When fostering siblings, you'll receive the full payment for the eldest child and a slightly reduced fee for any additional siblings. This adjustment accounts for savings on expenses such as transport costs for family visits.
You'll receive the full payment for children who are not related, as you'll need to facilitate family time for all the children in your care.
Tax and foster care pay
For most foster parents, the fostering allowance is completely tax-free. This is thanks to special tax rules called ‘Qualifying Care Relief’. For instance, receiving £25,000 per year through fostering allowances is equivalent to earning a salary of £30,000 in a taxable role.
As a foster parent, you’ll be classed as self-employed and must complete an annual tax return.
Foster carer benefits and pensions
Income from fostering doesn’t count when determining eligibility for means-tested benefits. Therefore, if you were eligible for benefits before becoming a foster parent, you should remain eligible after approval, as long as your financial circumstances haven’t changed (excluding income from fostering).
It also won't affect your eligibility to claim your state or private pension when you reach retirement age.
Working and fostering
Even though you’ll receive a generous tax-free allowance when fostering, we understand that some people want to continue working too. According to The Fostering Network, approximately 40% of foster parents combine fostering with other work.
At Orange Grove, our primary focus is always the safety and well-being of our young people. Nevertheless, we strive to offer flexible and creative support to foster parents who need to balance fostering with employment responsibilities, whenever possible.
What do the foster payments cover?
As well as the professional fee to the foster parent, the allowance should cover:
- Food and drink (including school meals)
- Clothing
- Transport
- Personal hygiene
- Hobbies, interests and fun days out
- Utilities, including phone bill
Are foster parents self-employed?
Yes, foster parents are classed as self-employed, so make sure you register yourself as self-employed as soon as you start caring for your first child. Once registered, you’ll need to complete a tax return every year.
You can register yourself as self-employed in three relatively straightforward ways:
1. Register online here
2. Complete a CWF1 form available online
3. Call the newly self-employed helpline on 0300 200 3504
Will I be paid if I’m not caring for a child?
There may be short periods when a child isn’t placed with you during your fostering career. Rest assured, we have a highly experienced and dedicated referrals team who screen hundreds of referrals every single day, aiming to find the perfect match for your family.
Additionally, if a child in your care is due to transition, whether back to their family, into independent living, adoption, or a long-term fostering arrangement, we begin the matching process well in advance.
This proactive approach minimises the time you spend without a child in your care and allows us ample time to find a suitable match who’s going to fit right into your family.
How do local authority allowances compare to independent fostering agencies?
Every independent agency and local authority offers a different allowance package for foster parents. Generally, independent fostering agencies like Orange Grove offer more generous allowances compared to local authorities. This is often because local authorities often place older children (aged 7 and over) with independent agencies, while younger children (under 7) are placed with local authority foster parents.
The minimum national recommended rates of pay for foster parents in England for the 2023/2024 range between £165 and £289 per week. At Orange Grove, we offer a significantly more generous allowance of £371 to £478 per week (23/24), ensuring our foster parents feel valued and supported in their crucial and life-changing role.
Need more information about foster care pay?
If you would like more information, please fill out our enquiry form below, and one of our friendly fostering advisors will be in touch with you soon.
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Ready to start your fostering journey?
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One of our team is available to talk to you over the phone to answer any of your fostering queries.
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