Financial Help For Foster Carers

One of the most common concerns for anyone thinking about fostering is money. It’s not usually the first reason people step forward — and it shouldn’t be — but it’s a fair, practical question: How will I support a child, and still cover my own costs?

The good news is that foster carers in the UK do receive financial support. It’s not a wage in the traditional sense, but it is a combination of payments and allowances designed to help you care for the child — and still manage your household finances.

What Financial Support Do You Get When Fostering?

Every approved foster carer receives a weekly fostering allowance, which is intended to cover the cost of caring for the child. This includes things like food, clothing, travel, pocket money, and other day-to-day needs. The exact amount varies depending on a few factors — the child’s age, where you live in the UK, and whether you’re fostering through a local authority or an Independent Fostering Agency (IFA).

In general, agencies tend to offer higher allowances than local authorities, partly because they expect carers to be available more flexibly, and often care for children with more complex needs. Carers can also receive additional payments, sometimes called “fees” or “skills payments,” based on their experience, training level, or the type of placement. This is your fee for looking after the child.

So yes, foster carers are financially supported — but it’s worth remembering that the allowance is meant first and foremost for the child. What’s left after expenses is yours to keep, and for some carers, it can be a decent income. For others, it might just about cover things. It really depends on your setup.

What Expenses Can I Claim as a Foster Carer?

This is understandably one of those areas that often confuses people. While the weekly allowance is supposed to cover standard expenses, foster carers are also eligible for tax relief and certain deductions under the HMRC’s Qualifying Care Relief scheme. This makes a big difference when it comes to how much of your fostering income is taxable (in many cases, it isn’t at all).

In addition to this, some agencies or local authorities may reimburse you for specific extra costs — say, mileage for long journeys to contact visits or school runs that go well beyond the usual. But you can’t just claim for anything. It usually has to be agreed in advance, and it helps to keep receipts and records, just in case.

Do They Check Finances When Fostering?

Yes — and no. During the assessment process to become a foster carer, you will be asked about your finances. But it’s not about being wealthy or owning your home. What social workers are looking for is stability. They want to know that you’re not under significant financial stress, and that you’re able to manage your money well enough to provide a secure environment for a child.

They may ask to see things like bank statements or household budgets, but it’s not an audit. The main concern is that you’re not fostering because you need the money. It has to be about the child, first and foremost. That said, they completely understand that fostering has to work financially, too.

Some people find that part of the process a bit intrusive — which is fair. But it’s worth remembering that everything in the assessment is ultimately about making sure children are placed in homes where they’ll be safe, supported, and not part of someone else’s financial crisis.

Are Foster Carers Entitled to Housing Benefit?

In short: yes, in many cases, foster carers can claim Housing Benefit, but it depends on your income — and specifically, how your fostering income is treated for benefit purposes.

Thanks to the Qualifying Care Relief scheme, much of your fostering income is disregarded when calculating means-tested benefits like Housing Benefit. That means you might still be eligible, even if your fostering allowance seems fairly high on paper.

However, it’s not automatic. You’ll need to inform your local council or Universal Credit work coach (if applicable), and they’ll assess your circumstances accordingly. Some carers receive partial benefit support; others don’t qualify at all. It really does vary from household to household.

It’s always a good idea to speak to a fostering-friendly benefits advisor — someone who understands how the system treats carers specifically. Otherwise, you can end up with conflicting or confusing advice.

Can Foster Carers Claim Income Support?

This is another one that depends on your situation. Foster carers can claim Income Support — but only under certain conditions. For example, if you’re caring for a child under 16 and not doing any other paid work, you may qualify. But with the shift to Universal Credit across much of the UK, fewer people are on Income Support now.

What’s important to know is that fostering doesn’t automatically disqualify you from claiming benefits. But again, how your fostering income is treated will depend on tax reliefs, your household setup, and whether you're applying as a single person or as part of a couple.

A Final Thought

Fostering isn’t a job in the traditional sense, but it’s definitely a commitment that impacts your finances — and your life. The financial support that’s available isn’t extravagant, but it’s designed to make fostering possible for ordinary people, not just those with savings or spare income.

Whether you're thinking of applying or you're already approved and just trying to make sense of the system, it’s okay to ask these questions. In fact, you should.

No one should feel embarrassed to talk about money. After all, part of creating a safe and stable home for a child means making sure you’re secure, too.

Colin Baptiste

Colin Baptiste and his wife are both Foster Carers who want to help make a difference in the lives of young people who are facing difficulties in the home. Foster care can be a very positive experience for children in care, but it really requires people who are dedicated to the best welfare of the children, what ever their age.

Colin is wanting to raise the profile of foster care, and reach out to people who would make great carers, and for whom foster care can be a solution for some of the issues they face.

You contact Colin at info@fosteringcontacts.com.