Money Matters and Insurance

Once you have completed the preparation training and the fostering induction standards and have a child placed with you, you will receive at least the minimum fostering allowances listed in the tables below. Allowances are usually made up of two components. The basic age related child allowance and the competence payment relating specifically to the foster carers tier level within the progression scheme.

If you have any queries about allowances or if you think you have been under or over paid, contact the finance section in the Fostering Service as soon as possible.

Payments to you are made in arrears, direct to their bank or building society.

The national minimum allowances are only the base minimum rates. The actual allowance that you will receive will depend on a number of factors, in particular the specific needs of the child. You may also get paid in recognition of your skills, commitment or time. These rates for Staffordshire foster carers are in this document: Fostering Allowances for Handbook 26 - 27.

While a child is Looked After, they are entitled to a number of other allowances.

The level of these payments is reviewed once a year.

An annual summer holiday grant is paid as an exceptional payment and is equivalent to two weeks' personal allowance per child (age related). This is provided to the foster carer as a contribution towards a holiday or for an equivalent number of day trips during the summer holiday period.

Family holidays are important social events that can build lifelong memories, and foster carers are expected to include the children that they foster when planning their family holidays. The County Council recognises that families have different priorities and family budgets when choosing holidays and this summer holiday grant is reflective of the available resources and the need to set appropriate budgets within Children's Services. Foster carers should take this into account when planning their holidays and activities. 

The summer holiday grant is paid in July in advance of the summer holidays to foster carers and should there be circumstances where this allowance is not fully used e.g. due to the child returning home or moving placement, then the foster carer should return the summer holiday grant.

For local information see the Fostering Allowances for Handbook 26 - 27.

This should be included in the first payment in December or the relevant month if another festival is celebrated.

This should be made with the payment immediately before the date of the child's birthday.

Expenses are paid by the Fostering Service for making trips to hospital; attend reviews, contact arrangements or other exceptional travel expenses. This will be at a set rate per mile.

Discuss with your Supervising Social Worker, any requests for specialist equipment.

When a child first arrives there may be a need for extra money to buy clothes. Please discuss this with your Supervising Social Worker.

The cost of getting birth certificates (and copies), passports and Life Story books will be met by the Fostering Service.

Information is also available from the GOV.UK website about passports.

When you are fostering, you will need to be registered as self-employed and file tax returns. See File Your Self Assessment Tax Return Online.

You will be entitled to qualifying care relief which means that you will be entitled to:

You must inform your Home, Building and Contents and Car insurance company once you have been approved as a foster carer.

Tell them about the numbers of children and age ranges you expect to take. You should ask the insurance companies for written confirmation that they have included foster children on your policies. A copy of these letters should be given to your Supervising Social Worker.