In this post, we will talk about fostering allowances and why they are paid.
Firstly, Shining Stars’ foster carers receive a generous weekly allowance starting from £425.00/week. However, this is significantly higher depending on the type of foster care the child needs. This makes us one of the top paying fostering agencies in London. Secondly, the foster income is generally tax free and usually does not affect your benefits.
Here, at Shining Stars Fostering we value our foster carers and the children they care for. Therefore, we strongly believe that they deserve a good quality life.
- Our foster carer receive a generous fostering allowance for each child
- They may be exempt from paying tax on this allowance
- Foster carer might be entitled to Working Tax Credit/other benefits
- They will need to register as self-employed and pay NI contributions
What is fostering allowance?
Foster carers receive an allowance for each child or young person they care for. This is called fostering allowance but is 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. This is why our foster carers are paid a generous fostering allowance that is made up of a professional fee for themselves and also a day to day living allowance for the foster child.
The fostering allowance covers the needs for each foster child. It includes food, clothing, savings and so on for the child. Based on this, we give a clear guidance on how you can best spend the money so that each child in your care has a healthy, happy and balanced life.
How much fostering allowance do foster carers receive?
This depends on the care type and the foster child’s needs. Our foster carers receive a generous fostering allowance starting from £425.00/week. However, this is significantly higher depending on the care type.
Foster payments are hassle-free and are paid directly into your bank account.
Is fostering allowance (foster care allowance) tax free?
In general, foster carers are exempt from paying tax on the fostering allowance / foster care allowance.
Foster carers are regarded as self-employed for tax purposes. You can find out more details about the tax-free payments for foster carers from HM Revenue & Customs.
Does the fostering allowance affect benefit entitlement?
You may be entitled to claim benefits and tax credits while receiving fostering allowances. The fostering allowances are normally disregarded as an income or only taxable profit from your fostering income is taken into consideration.
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
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? Foster with Shining Stars. We offer competitive weekly allowances, 24/7 fostering support and comprehensive foster care training. Call 020 8263 6260.
We need foster carers more than ever before. More vulnerable children are coming into the care system who need a safe and caring environment to live in.
Shining Stars Fostering is delivering full service in line with the government advice. We have applied changes and have adapted digital ways to stay in touch with everyone who we work with. We are following the government guidance without compromising on the quality of our service.
Please do not hesitate in contacting us on 020 8263 6260 or firstname.lastname@example.org