Fostering payments, allowances and benefits

To help people to foster we provide a generous and competitive foster carer fee (a fee for you to spend as you wish) with allowances to cover the full cost of caring for a child or siblings in your care. These are paid for each child you care for. The amounts can vary depending on: 

  • the type of foster care role you choose
  • the number of children you care for
  • the ages of the children
  • additional needs the children may have

Your fee and allowance are paid directly into your bank account every two weeks, and you are paid for the periods that you are caring for a child or children.  

Typical annual allowance

Below are some examples, based on our current foster carers. 

If you foster: 

  • 2 children aged between 5 and 8, during your first 2 years of fostering you could receive up to £32,032 annually. Following this, your foster carer fee increases, and you could receive up to £39,832.  
  • 2 children aged between 11 and 15, during your first 2 years of fostering you could receive up to £35,152 annually.  Following this, your foster carer fee increases, and you could receive up to £42,952.
  • 3 children aged between 11 and 15, during your first 2 years of fostering you could receive up to £52,728 annually. Following this, your foster carer fee increases, and you could receive up to £64,428.

Payments and allowances

As well as your foster carers fee and the allowance to cover the cost of caring for a child, you also receive payments for other elements such as holidays and birthdays. The below figures are the current payments for foster carers.

Tier one foster carers (the foster carer fee for the first two years)
Type of payment 0 to 4 years old 5 to 10 years old 11 to 15 years old 16 + years old
Foster care fee (per week) £100 £100 £100 £100
Child allowance (per week) £189 £208 £238 £278
Holiday allowance (annually) £378 £416 £476 £556
Birthday allowance (annually) £189 £208 £238 £278
Annual total £15,595 £16,640 £18,290 £20,490
Tier two foster carers (the foster carer fee for those who have been fostering for over two years)
Type of payment 0 to 4 years old 5 to 10 years old 11 to 15 years old 16 + years old
Foster care fee (per week) £175 £175 £175 £175
Child allowance (per week) £189 £208 £238 £278
Holiday allowance (annually) £378 £416 £476 £556
Birthday allowance (annually) £189 £208 £238 £278
Annual total £19,495 £20,540 £22,190 £24,390

Benefits and long service

To show our appreciation for the dedication of foster carers, we provide several benefits and long service payments, including:

  • a welcome fee of £1,000 (paid to new foster carers after caring for a child for six weeks or on a pro-rata basis if you provide respite for children)
  • a long service payment for Central Bedfordshire foster carers. This is paid every five years you foster (for example, you will receive £500 on your five-year anniversary, this increases by £500 for every 5 years of service)
  • once you are an approved foster carer, you will also be eligible for our refer a friend scheme, where you could earn £1,000 for referring your networks to us when they become approved foster carers

Read more about fostering support and benefits

Foster carer tax

Foster carers are treated as self-employed for tax and National Insurance purposes.  Foster carers will need to register as self-employed and file a tax return. It’s worth noting that foster carers are eligible for qualifying care relief. This means that many carers fostering payments are below the tax threshold. You can read more about foster carer tax arrangements on the Gov.uk website.