Foster carer allowances

We know it is always important to be financially stable when building a happy home for a child. That’s why we provide financial allowances so that you never have to worry about money.


How will fostering affect my finances?

Becoming a foster carer can offer you important financial incentives that can help offer the stability needed in a child’s life. There are many things that can affect your tax allowances and we will work closely with you to help explain every detail and how you may benefit.


How much tax will I pay?

Fostering is classed as self-employment and there are generous tax allowances available to help. The important thing to remember is that each individual’s financial circumstances are different.

As a foster carer, you are given a fixed tax exemption of up to £10,000 per year, on top of your standard personal allowance of £10,600 which means you have a total fixed tax allowance if £20,600.

In addition you also receive;

  • £200 per week for child placements under the age of 11
  • £250 per week for child placements aged 11 or over

An example explained

To give you an example, if you have two foster children under 11 and one foster child over 11 for all 52 weeks of the year you will receive the following tax-free allowances:

  • £10,600 standard UK allowance
  • £10,000 foster carer allowance
  • £20,800 for your two children under 11 (£200 x 52 weeks x 2 children)
  • £13,000 for your one child over 11 (£250 x 52 weeks x 1 child)

This means you would have a total of £54,400 tax-free allowance for the year.


What about existing benefits?

Fostering income is ignored when calculating eligibility to Income Support and Job Seeker Allowance.

Working Tax Credit is calculated on a household basis and foster carers can claim this even if they have children in placement.

To understand fully about how fostering will affect your benefits just give us a call and we will talk you through it.


Additional rewards with Fostering Solutions

At Heath Farm our carers are our priority. That’s why all of our foster carers will automatically become members of The Fostering Network, an independent company dedicated to supporting carers in the UK.

With your membership you will have access to foster carer helplines, have advice on tax returns and also enjoy savings on a host of days out and attractions across the UK. Between the professional advice provided by Heath Farm and The Fostering Network, you will always have someone there to help guide you through each stage of being a foster carer.

Want to know more?


Inside your Fostering Guide...

  • Applying to be a foster carer
  • The different kinds of foster care
  • Support for our foster carers
  • Our training and development programmes
  • How fostering affects your finances

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