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Foster Carer allowances

Find out about foster carer allowances, including our Skills Based Fee Scheme, a list of basic allowances and skills payments for each level, additional allowances and tax and national insurance for foster carers.

How does our Skills Based Fee Scheme work?

Our Skills Based Fee Scheme allows foster carers the option to progress through 4 levels.

 On reaching a higher level you'll receive a higher rate of payment in recognition for your specific skills, your expertise and your contribution to the continued development of the fostering service. Carers contribute to the development of the fostering service including recruitment and training of other foster carers.

New foster carers:

  • Start at Level 1, or Level 2 if they complete 'Skills to Foster' training.
  • Need to complete further training to stay at Level 2 after 12 months.

All foster carers:

  • Are offered training opportunities to advance their allowance level.  
  • Have their allowances annually reviewed.  

Summary of basic allowances and skills payments 

You'll receive the basic allowance and skills payment for each child in your care. 

Basic allowances vary depending on the age of the child or young person.

Level 1

Age of child or young person​​​ ​Basic weekly allowanceSkills paymentTotal per annum
​0-4£1280£6,656
5-10£1410£7,332
​11-15£1610£8,372
​16+£1880£9,776

Level 2

Age of child or young person​​​ ​Basic weekly allowanceSkills paymentTotal per annum
​0-4£128£75£10,556
5-10£141£75£11,232
​11-15£161£75£12,272
​16+£188£75£13,676

Level 3

Age of child or young person​​​ ​Basic weekly allowanceSkills paymentTotal per annum
​0-4£128£140£13,936
5-10£141£140£14,612
​11-15£161£140£15,652
​16+£188£140£17,056

Level 4

Age of child or young person​​​ ​Basic weekly allowanceSkills paymentTotal per annum
5-10£280£140£21,892
​11-15£280£140£22,932
​16+£280£140£24,336

Additional allowances

Foster carers also receive the following additional allowances for each fostered child or young person:

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

When are foster allowances paid?

Basic allowances are paid fortnightly through BACS.  

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

Tax and national insurance for foster carers

Most foster carers  pay little or no tax on their fostering allowance and skills payment.

Fosters carers are treated as self-employed for tax and national insurance purposes. They use a specific tax scheme called Qualifying Care Relief that calculates a special tax threshold for each fostering household.

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

    Rochdale Guide to Foster Carer Allowances 2017-2018 (441kb pdf)​​​

 Global Terms

Contact


0300 303 1000

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