Fostering Allowances & Payments
At Shining Stars Fostering we feel it’s important that our foster carers are treated as professionals and that we pay a competitive foster carer allowance for their work and skills. This allows them to feel valued and appreciated for the challenging work they do.
Our foster carers are paid a weekly allowance, per child, ranging from £425.00 per week or significantly higher for a child with special needs. This is significantly above the government’s minimum fostering allowances that are currently in place.
What does the fostering allowance cover?
The fostering allowance covers foster carer payment, and includes payment for each carer’s skills and commitment as well as an allowance for the maintenance side of fostering. We provide clear guidance on how you can best spend the money so that the child has a healthy, happy and balanced life.
The maintenance element of this allowance includes:
- expenses for clothes
- pocket money and savings
- food
- leisure activities
- most school transport
Everyone’s fostering allowance is different depending on the age of the children, complex needs of a child and whether you are fostering in London, the South East or the rest of the UK.
Basics about fostering allowance
- Shining Stars pays a fostering allowance for each foster child.
- The fee is an income payment for the foster carer.
- The allowance and fee average a total weekly minimum payment of £425 for each child.
- We also add an additional payment to the allowance for children’s birthdays, religious or cultural festivals (Festival allowance) and a respite allowance.
Foster carers may be in a position to claim or continue any of the following benefits: Income support – Income-Based Job seeker’s Allowance – Council Tax Reduction – Disability Living Allowance – Working Tax Credits – Housing Benefit.
Fostering allowance payments
Our foster carers receive payment promptly and at an agreed day, on a monthly basis. We issue a monthly statement of the payments to each carer and ensure that our carers have access to an accountant who can advise them on any finance or tax related questions.
Foster carers are classed as self-employed and earn a weekly fostering allowance for each child or young person they look after. The amount of allowance paid varries, depending on the type of care and the age of the child or young person. UK foster carers generally pay no tax on their fostering income.
If you’d like to get more information, or you have any queries about the fostering allowance / fostering pay, we’re happy to give you all the help you need.
FAQ – FOSTERING ALLOWANCE (Foster Care Allowance )
What is fostering allowance?
Foster carers receive an allowance for each child or young person they care for, this is known as a fostering allowance also known as foster care allowance.
What does fostering allowance (foster care allowance) cover?
We recognise that looking after a child or young person has financial implications which is why as a foster carer you are paid a weekly fostering allowance which is made up of a professional fee for yourself and also a day to day living allowance for the child.
The fostering allowance (foster care allowance) is to cover all the needs (food, clothing, savings and so on) of each child in your foster care. We give a clear guidance on how you can best spend the money so that each child in foster care has a healthy, happy and balanced life.
The fostering allowance is different and depends on the care type and the foster child’s needs. Another factor that is relevant on how much fostering allowance you will receive is whether you are fostering in London or other areas of UK.
Foster payments are hassle-free and are paid electronically, directly into your bank account.
Weekly fostering allowance rate
The minimum weekly allowance for Shining Stars’ foster carers is £425.00/week and is significantly higher depending on the type of foster care the child needs. We are one of the top paying foster care agencies in London. This foster income is generally tax free and usually does not affect your benefits.
At Shining Stars Fostering we value our foster carers and the children they care for and believe that they deserve a good quality life.
- You will receive a generous fostering allowance for each child
- You may also be exempt from paying tax on this allowance
- You might also be entitled to Working Tax Credit/other benefits
- You will be registered as self-employed and pay NI contributions
Is fostering allowance (foster care allowance) tax free?
In general, foster carers are exempt from paying tax on the fostering allowance / foster care allowance.
For tax purposes, foster carers are regarded as self-employed. You can find out more details about the tax-free payments for foster carers from HM Revenue & Customs.
Does Fostering Allowance (Foster Care Allowance) affect benefit entitlement?
As a foster carer you may be entitled to claim benefits and tax credits. The allowances and fee (if you get one) you receive from fostering are normally completely disregarded as income or only taxable profit from your fostering is taken into consideration for the purposes of calculating your entitlement to benefits.
For further information about claiming benefits while fostering visit the Government’s website, or download the HMRC’s leaflet on tax credits.
Source: The Fostering Network
Could You Foster?
We are recruiting Foster Carers. We need more Foster Carers to help the most vulnerable Children (COVID-19)
Do you enjoy working with children and can offer them a family home where they can develop and thrive? Do you have a spare bedroom? Why waiting? Foster with Shining Stars Fostering. We offer competitive weekly allowances, 24/7 fostering support and comprehensive foster care training. Call 020 8263 6260.
We are looking for foster carers more than ever before as vulnerable children are coming into the care system who need safe and caring environments to live in during this coronavirus pandemic.
Shining Stars Fostering is delivering full service in line with the government advice. We have applied changes and have adapted digital ways to stay and get in touch with everyone who we work with in order to follow the government’s guidance of keeping social distancing without compromising on the quality of our service.
Please do not hesitate in contacting us on 020 8263 6260 or info@shiningstarsfostering.com
Want to know if you can foster?
Find out if you meet the criteria to become one of our foster carers.
We are recruiting Foster Carers
We are currently recruiting foster carers across all the London Boroughs and the surrounding counties. Please go through the website and contact us to register an interest in fostering.
Foster in your area
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SSFA has a range Policies and Procedures concerning Social Work Practice, HR and Finance which are used to guide staff and for tendering and commissioning purposes. If any of the issues that are not covered please do contact your supervising social worker or our registered manager who will guide you to the appropriate policy. Shining Stars Fostering Agency Tri-X policies