2. Help with the cost of fostering
Foster carers get an allowance to cover the cost of caring for a child.
Minimum weekly allowance - 2017 to 2018
|Babies||Pre-primary||Primary||11 to 15||16 to 17|
|Rest of England||£125||£128||£141||£161||£188|
The rates are updated every April.
You could get more if:
- the child has specific needs
- you have certain skills
- you make a particularly large commitment to fostering
There’s a fixed tax exemption of up to £10,000 per year (less if for a shorter period) which is shared equally among any foster carers in the same household. This means you don’t have to pay tax on the first £10,000 income (after expenses) you make from fostering.
On top of the £10,000 exemption, you also get tax relief for every week (or part week) that a child is in your care. This means you don’t have to pay tax on some of your earnings over £10,000.
|Age of child||Tax relief|
|Under 11||£200 per child|
|Over 11||£250 per child|
Laura is a foster carer for a 14-year-old for the whole of the year and for an 8-year-old for 10 weeks of the year. She doesn’t have to pay tax on the first £25,000 she earns:
Tax exemption = £10,000
Child 1 (52 x £250) = £13,000
Child 2 (10 x £200) = £2,000
Total = £25,000
Fostering for Adoption
If you’re Fostering for Adoption you’ll be entitled to adoption pay and leave from when the child comes to live with you.