Foster carer allowances

We understand the importance of money in raising a happy child. We provide financial allowances to ensure you never need to worry about money and can instead focus on creating a happy and safe home.


How will fostering affect my finances?

The biggest reward in becoming a foster carer is being able to see every day the positive impact you have had on a child's life. It's also important, however, to remember that there are financial incentives too.

There are a number of things that can affect your tax allowance such as the number of placements you have or if you have an additional income. We are on hand to take you through every detail and explain how it might work for you.


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 £11,500 which means you have a total fixed tax allowance if £21,500.

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

These payments are in addition to your tax free allowance. This isn't the fee you will be paid by Pathway Care.


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:

  • £11,500 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 £55,300 tax-free allowance for the year.


What about existing benefits?

Any income made being a foster parent 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 more about how becoming a foster carer will affect your benefits just give us a call and we will talk you through it.


Additional rewards with Pathway Care

At Pathway Care we like to look after our carers. All of our foster carers will automatically become members of FosterTalk, 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 over 4,500 discounts on high street goods and services. The expert help provided by Pathway Care as well as the helpful support of FosterTalk means you will never be left on your own.

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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