Fostering allowance
Receive up to £25,854 of tax-free allowances for each child in your care
We know that fostering pay isn't your motivation to become a foster parent. However, we recognise the importance of financial security – 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?
Is fostering a salaried role? No, there is no foster care salary; however, every foster parent does receive a fostering allowance.
Foster care payments depend on a few factors, including:
- The agency or local authority you foster with.
- Your location.
- The age and number of children in your care.
- Your fostering experience.
- The needs of the children in your care.
- The type of foster care you provide.
At Orange Grove, we’re proud to offer a generous financial support package for foster parents. Our foster carer allowances exceed the recommendations set by The Fostering Network and many fostering providers across the country. Find out how much you could receive with our fostering allowance calculator.
Our fostering allowance package includes:
When you foster with Orange Grove, you receive:
- Foster carer pay - A fostering allowance of up to £25,854 per year per child (£2,154 per month). Foster parents also benefit from a special tax rule, which means most don't pay tax on their fostering income. As a result, this is equivalent to earning £30,000 per year in an average job role before tax.
- Additional allowances - Further payments to celebrate birthdays and religious festivals for the children in your care.
- Generous mileage allowance - For any extra travel involved in caring for a child.
- Respite allowance - 2 weeks of paid respite each year so you can rest and recharge.
- Additional support - Free membership to FosterTalk.
- Exclusive discounts - Access to hundreds of discounts through our rewards platform.
- Refer-a-friend scheme - 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 £455 per week.
Annette
Fosters a 14-year-old. She receives £487 per week.
Safia & Krish
Foster two children, aged eight and ten. They receive £908 per week.
Joan
Fosters a parent and her newborn baby. She receives £755 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. We call these ‘Grades’ and have three – discover how these impact fostering payments below.
New to fostering
When you begin a fostering career at Orange Grove, during your first year while completing core training, you'll be at Grade 1.
At Grade 1, you'll receive between £390 and £477 per week, per child, depending on their age.
1 years experience
To move from Grade 1 to Grade 2, you must complete the following:
- 12 months of fostering children.
- The Training and Development Standards.
- Core training
Transferring to Orange Grove from another fostering agency or local authority? If you've completed the above with your current provider, you'll begin at Grade 2.
At Grade 2, you'll receive between £400 and £487 per week, per child, depending on their age.
3 years experience
Once you’ve been fostering for 3 years, you can apply to become a Grade 3 foster parent. Grade 3 foster parents receive between £410 and £497 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 varies depending on your fostering provider. However, allowances generally work the same and comprise the following parts:
Child’s Allowance
The child’s allowance will ensure you can cover the costs of caring for a child. Expenses include food, clothing, pocket money, personal care items, hobbies, activities and travel expenses.
Foster Parent Payment
The foster parent payment rewards you for your hard work, experience, and unwavering dedication. This professional fee also means you can focus on achieving great outcomes for vulnerable children 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
If you fostering siblings, you'll save on expenses such as transport costs for family visits. As a result, you'll receive full payment for the eldest child and a slightly reduced fee for any additional siblings.
However, if you foster more than one child and they aren't in a sibling group, you'll receive full payment for each child. This is because you'll need to facilitate family time for each child in your care.
Tax and foster care pay
All foster parents benefit from 'Qualifying Care Relief', which means the fostering allowance is often completely tax-free. Thanks to this special tax rule, a £25,000 per year foster care allowance can be equivalent to a £30,000 taxable salary.
When you become a foster parent, you must register as self-employed and file an annual tax return.
Foster carer benefits and pensions
Income from fostering doesn’t count when determining your eligibility for means-tested benefits. So, if you were eligible for benefits before becoming a foster parent, you should remain eligible after approval. However, if your financial circumstances change (excluding income from fostering), you will be reassessed.
Will fostering impact my state or private pension? - No, you can still claim both when you reach retirement age.
Working and fostering
At Orange Grove, you’ll receive a generous tax-free fostering allowance. However, we understand that some foster parents want to continue working alongside fostering. In fact, according to The Fostering Network, approximately 40% of foster parents combine fostering with other work.
Our primary focus is always the safety and well-being of our children and young people. So, if you want to continue working while fostering, we'll discuss whether it's feasible. If it is, we'll provide flexible and tailored support to help you balance fostering with your employment responsibilities.
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?
While discussing allowances may feel uncomfortable, you can ask us anything about foster care pay. We know this information is essential, and we want you to enjoy your fostering journey without worrying about money.
If you have any questions, our friendly fostering advisors are ready to provide the answers. Contact our team on 0800 369 8513 or submit an online enquiry form, and we’ll get back to you.
Please make sure you read our terms and conditions because you're agreeing to them by submitting an enquiry. It's also worth reading our privacy policy and cookies policy so you understand how we collect and use your personal data. This site is protected by reCAPTCHA and the Google privacy policy and Terms of Service apply.
Ready to start your fostering journey?
By phone
One of our team is available to talk to you over the phone to answer any of your fostering queries.
Enquire online
You can get in touch by filling out our online enquiry form with any queries that you may have.
Your local office
We have local teams covering most of England. Find your local office today.