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Foster Carer allowances

Find out about our skills based fee scheme for foster carers, basic allowances and skills payments, additional allowances, tax and National Insurance.

Our skills based scheme for foster carer allowances

Our skills based scheme allows foster carers to progress through 4 levels. At each level you'll receive a higher skills payment on top of your basic allowance in recognition of your growing skills, expertise and your contribution to the fostering service through recruitment and training of other foster carers.

What level do new foster carers start at?

New foster carers start at Level 1, or Level 2 if you complete 'Skills to Foster' training.  You'll need to complete further training to stay at Level 2 after 12 months.

All foster carers have their allowances reviewed each year and are offered training opportunities to increase their allowance level.

How much are basic allowances and skills payments?  

You'll receive a basic allowance and skills payment for each child in your care, where applicable. The amount you receive will depend on your skill based level and the age of the child or young person.

Level 1

 
Age of child or young person Basic weekly allowanceSkills paymentYearly total
0-4£1280£6,656
5-10£1410£7,332
11-15£1610£8,372
16 and up£1880£9,776

Level 2

 
Age of child or young person Basic weekly allowanceSkills paymentYearly total
0-4£128£75£10,556
5-10£141£75£11,232
11-15£161£75£12,272
16 and up£188£75£13,676

Level 3

 
Age of child or young person Basic weekly allowanceSkills paymentYearly total
0-4£128£140£13,936
5-10£141£140£14,612
11-15£161£140£15,652
16 and up£188£140£17,056

Level 4

 
Age of child or young person Basic weekly allowanceSkills paymentYearly total
5-10£280£140£21,892
11-15£280£140£22,932
16 and up£280£140£24,336

Additional allowances

You'll also receive the following additional allowances for each fostered child or young person in your care:

  • Birthday allowance - equivalent to 1 week's basic weekly allowance.
  • Festival allowance - equivalent to 1 week's basic weekly allowance.
  • Holiday allowance - 1 per year, equivalent to 2 week's basic weekly allowance.

When are foster allowances paid?

Basic allowances are paid fortnightly through BACS.  

Festival, birthday and holiday allowances are paid at the relevant times on top of basic weekly allowance payments.

Tax and national insurance for foster carers

Most foster carers pay little or no tax on allowances and skills payments.

Fosters carers are treated as self-employed for tax and National Insurance purposes. You'll use a specific tax scheme called Qualifying Care Relief that will calculate a special tax threshold for your individual household.

HM Revenue and Customs offer an e-learning course on tax and National Insurance for foster carers:

 

Contact

0300 303 1000

Phone: Monday-Friday 9am-5pm.

Fostering Team
Fashion Corner
57-59 Drake Street
Rochdale OL16 1PA