Payments to foster carers

Payments

We pay allowances for fostering in recognition of the additional costs that children in care can bring. They do not generally include a reward element.

The payment week runs from Sunday to Saturday.  Carer’s payments are received by Friday of that week.  We pay allowances by BACS directly into your bank account. Details of other specific payments are included in later sections.

If you have queries about payments, first contact your supervising social worker (SSW).

Any other payments require approval by the relevant manager. Despite the current economic situation, we have been able to support a rise in mainstream allowances for 2022/2023.

Weekly allowance (as of 1 April 2023)

The allowances cover the following additional costs of caring for a child or young person:

• food, including school meals
• clothing
• household expenditure such as electricity, gas, TV, telephone and toiletries
• personal expenditure such as pocket money, gifts, magazines, low-cost clubs and activities. If the child in placement undertakes one more expensive activity, the fostering service will consider covering this cost if it has been previously agreed with your SSW.
• routine travelling expenses including school bus fare, but excluding specialist appointments such as CAMHS or regular hospital visits
• day trips, including school trips
• transporting children to school within a three-mile radius. Mileage for transporting children outside the three-mile limit should be agreed upon placement

In exceptional circumstances, the team manager may consider that the child’s behaviours require additional expenditure.  We may pay an enhanced rate of £303.48 per week (known as a specific child rate). We will advise you upon placement of the child if this rate is applicable. As the child’s needs change, we will regularly review the payment.

We will also make this enhanced level of payment where carers are linked at panel.  This is for permanence with children who have been waiting for a permanent placement for over six months.

An additional four-week age-related allowance will be paid to cover:

• Christmas or another religious festival – one week paid in early December or the month during which the festival occurs.  After that date, we will add this to your regular weekly allowance if you take a placement. If a child moves during the two weeks prior to Christmas day, it is expected that any gifts purchased will be transferred with them. If the child leaves before this period, we will recover the allowance if there is no evidence of the child having the gifts.
• Birthdays – one week paid in the week immediately before the child’s birthday.
• Holidays – two weeks to be paid on the Friday before the start of the school summer holidays each year.

If the placement is made after that date, you can apply for the allowance through your SSW. This allowance contributes to holiday costs, either for days out or holidays away. This will not normally be paid if carers have taken a family holiday and not taken the child who has spent the time with respite carers.

If you know the child will not be with you for the full duration of the summer holidays, contact your SSW.  They will ensure pro rata payment is made, and that any overpayment is prevented.

Pocket money (included in the weekly allowances)

You should advise the child of the amount of pocket money they will receive.  The amount will vary according to age.

Pocket money is for incidental expenses above and beyond normal household items. Depending on age, this could be sweets, make-up, toys, computer games and the purchase of gifts for family and friends.

It is expected that children aged 11 and over will contribute towards expensive hobbies and clubs. You should put any money not given directly to the child in a savings account.

Guidance for recommended pocket money rates (payable from allowance): 

Personal allowances

This allowance is designed to meet a variety of personal needs, and cover pocket money and savings. 

It may be used for the older age group to cover, for instance, the cost of hair care products, phone cards or personal telephone calls. Your child or young person may wish to take up a hobby or activity such as horse riding, so some of this could contribute to that.

Children who work

Whilst young people are in education this should be their priority. However, the child’s social worker may agree that it is appropriate for a child to have a part-time job. They should be encouraged to save this money or part of it. In most cases, a bank account should be set up for them. You should discuss this with the child’s social worker.

When a child is in full-time employment, individual discussions should take place with the social worker and young person regarding their financial responsibilities to the placement.

For a few young people, the Staying Put scheme allows them to remain in their foster placement post 18. The scheme has its own financial guidelines.  Young people should discuss with the scheme co-ordinator to decide how finances will be accessed.

Clothing

You are expected to be able to care for and provide for the foster child within the allowance.  It is not expected that you spend a fixed amount on clothes every week, as long as the child is appropriately and adequately clothed.

You must keep a record and receipts for clothing purchases for six months after the end of the placement.  You can use this form to record clothing purchases.

If the social worker or supervising social worker (SSW) is concerned about the child’s clothing, they will discuss this with you.  They may ask to see a record of purchases and receipts.

Sometimes a child may come into care with inadequate clothing.  We will pay a discretional grant of up to £100 to purchase essential clothing items. This should be agreed with the SSW.

When a child leaves your home, clothing and belongings must be packed in holdalls. You must not use plastic sacks or carrier bags in any circumstances. If necessary, purchase holdalls and claim the money back.

School uniform

We pay a uniform grant when a child changes school and the school requires them to have a set uniform.

• up to £100 for infants and junior schools
• up to £250 for secondary schools
• up to £250 for sixth form or college

These amounts cover all school clothes, including that required for sports and technology lessons.

You should keep receipts, and all clothes bought with the grant must be new and recorded.

Normal replacement of school clothes is included in the weekly allowance.

Specialist items of clothing

You will be reimbursed up to £50 for uniforms for clubs, such as brownies, cubs, cadets and judo.  You must provide a receipt.

For school leavers, we will pay a grant of up to £120 to contribute to the cost of work clothes or interview clothes.

We will pay up to £50 for other specialist equipment or clothing upon production of receipts.  We will only pay this once in any 12-month period.  It should cover equipment for hobbies such as gymnastics, football, ballet and horse riding.

Allowances

Trips organised by schools or exceptional holiday grants

We may pay a grant towards the cost of one exceptional holiday or one educational holiday. The payment is to cover the cost of the trip up to a maximum of £300 per child.

As this is an additional payment for an exceptional holiday, it is unlikely to be paid in successive years. The fostering team manager must agree to the payment.

Family time

Foster carers are often best placed to help a child manage time with their family. This allowance includes an element of the costs incurred related to family time.  There may be family time with birth relatives up to three times a week.

Family time may take place in your home.  It will not normally take place in your home after 7pm or at weekends.

We will pay a disruption rate of £2.50 per hour if:

• the care plan requires family time to take place in the home after 7pm or at weekends, and
• the timing is not at the foster carer’s convenience

To claim this allowance, you will need to log and confirm this with your child’s social worker and SSW at the time of placement.

We will pay you a disruption or expenses rate of £4 per hour if:

• you are responsible for taking children to family time away from your home, and
• it is not practicable to return home during family time

This figure includes all parking costs, food purchased and other incidental items.

Meetings

Being a foster carer will involve you attending a variety of meetings such as:

• statutory looked after reviews to review and consider the child's care plan
• medicals for the child
• planning meetings
• child protection conferences
• specialist input (education, psychologist, medical) relating to the child

We will pay mileage for attending these meetings.

Transport

We have agreed we reimburse foster carers at 45p per mile. In line with HMRC rules, we will pay mileage over 10,000 miles at 25p per mile.

You must submit claims for agreed mileage monthly. To ensure you are paid on time, claims must be submitted by the fourth day of the following month. Any mileage to be paid in excess of a three month period is at the discretion of the fostering team manager.

People carriers

Occasionally, we may provide a people carrier on loan for a short period. We will consider requests on an individual basis.  The fostering team manager must agree to the loan. We have a small capital budget, which may enable us to contribute towards the purchase of a people carrier for foster carers able to look after larger sibling groups.

Telephone costs

Costs arising from helping the child keep in touch with their family should be met through the normal allowance payments.  This includes a reasonable top-up or contract payments for mobile phones.

Laundry costs

A child may occasionally wet the bed.  Any laundry costs arising from this are included in the allowance.

If you are caring for a large group of siblings (three or more), additional support is available. You should discuss this with your SSW.  You should provide any specific examples where additional costs are incurred.

Hospitality during introductions

We pay £5 per person per day where a foster carer provides hospitality for a family during an adoption introduction.

Out of hours payments

We will pay £80 if mainstream foster carers agree to take placement via the emergency duty team out of normal office hours.

In recognition of the disruption and preparation that may have taken place, we will make this payment regardless of whether the child is actually placed.

It will not be paid if the foster carers:

• decline the placement
• have been specifically recruited for the emergency scheme

Playgroup and nursery fees

Decisions about pre-school attendance will be made at the placement planning meeting or subsequent reviews. Children in care are entitled to receive free pre-school placements after their second birthdays. This will require discussion with the education provider.

We will pay playgroup fees up to £25 per week.  The fees must be agreed as being required as part of the child’s care plan. Meals provided at nursery should be funded from the weekly fostering allowance.

After school activities

The first activity should be funded for from the weekly fostering allowance.

For additional activities, we will fund up to £25 per week for one additional activity.  The activity must have been agreed as being required as part of the child’s care plan.

Day care

Sometimes a carer’s friends or family members who have been checked and approved will provide care for all or part of a day.  The rates paid will be hourly based on the age-appropriate fostering allowance. This is to provide a consistent approach and is irrespective of whether the provider is a carer or not.

For any carer providing day care to a child excluded from school, we will pay:

• £50 per day
• £25 per half day (up to 4.5 hours)

This additional payment is intended for educational activities with the young person concerned. Details of the activities should be discussed and reviewed by the child's social worker and SSW. The fostering team manager will review this after 28 days.

Any care arrangement in excess of this will be considered a respite arrangement.  It will attract the pro rata daily rate applicable to the child.

Educational support

We are committed to raising the educational attainment of children in care.

To assist school children, we offer a grant to purchase study guides:

• Key Stage 2 or any junior school aged child - up to £20
• Key Stage 4 - up to £50

These guides are usually cheaper when purchased via schools. Children in care will also be offered learning opportunities.  This is via the children in care children school team.

Short breaks (respite)

We provide all permanent foster carers with 14 nights respite, known as short breaks, per year. This is in line with the support for carers policy.  However, sometimes a care plan recognises that additional periods are required.

For task centred carers, it is anticipated that leave can be taken between placements. Where a child’s placement continues beyond the anticipated duration and extends beyond 12 months, 14 days of paid short breaks will be available. Any short breaks in addition to this must be part of the child's care plan.

For all children, the experience of a family holiday is recognised as valuable.  Short break care should be only used on a limited basis for holiday periods. It will be for carers to determine how they want to take their short breaks, either for weekends or a longer holiday period.

Where children are placed for short breaks with other carers, we normally pay these carers the usual allowance for the child.  The child's main placement allowance will continue to be paid for up to two nights only.

For three nights or more, we will stop the allowance to the main carers.  This is unless the main placement is a permanent arrangement.  In such a case, the main carers will continue to receive the allowance.

If the short break allowance is not used, there is no entitlement to holiday pay or carrying it forward to the next year.

It is essential for short break arrangements to be made formally through your supervising social worker (SSW).

Due to tax regulations, payments must not be made directly from one carer to another.

Benefits

If you receive a fostering allowance, you cannot include the child you foster in a claim for:

• child benefit
• family tax credit

Some disabled children are entitled to have an allowance such as a disability living allowance.  This will be changing to personal independence payments for those aged 16 and over.

Disability Living Allowance

Disability Living Allowance (DLA) is a Department of Work and Pensions benefit available to disabled children.  It is for personal care or supervision over and above other children of the same age because of their illness or disability.

The DLA benefit is paid at different rates according to the child’s needs. It contains both a care and mobility component:

• the care component is paid at a low, medium or high rate.  It may be payable to a disabled child from the age of three months; once the child’s needs have been assessed
• the mobility component is paid at a low or high rate, namely a higher rate from age three and a lower rate from age five.

Some children will receive either one or both elements.

Sometimes a child receives a DLA before becoming a child in care. For these cases, the child’s social worker should have discussions with the parent about the transfer of the DLA to the foster carer.

The parent must notify the Department of Works & Pensions that the child is no longer in their care. 

The foster carer is advised to make an application to receive the DLA. In the same way, if a child moves from one foster carer to another, the foster carer must notify the DWP.  Any DLA money is then transferred to the new carer.

DLA is awarded to the child, not the carer. Normally, if the child is under 16, the carer acts as an appointee. Otherwise, the young person, can have the benefits paid to them directly, providing they are capable.

The DWP does not have conditions on to how the money should be spent. The money is intended to be used to enhance the child’s life.  The child should get the maximum benefit from the DLA.

Foster carers will be expected to set up a separate bank account, in the foster carer’s own name, into which the DLA will be paid. The money is not intended to be saved for the child for use in later years as this could result in them being penalised. For example:

• if there is more than £3,000 in an account when the child returns home, this will affect any benefits claimed by the parents
• for a child reaching 16, a sum of more than £8,000 will affect their claim for universal credit and housing benefits

The child’s social worker must be involved in discussions on how the DLA can be used to improve the child’s life.  They are responsible for monitoring the way the money is spent. Carers are not expected to produce receipts for small items of expenditure but must show how it is being used for the child’s benefit. Any expenditure over £50 will require a receipt.

Scrutiny of the money process is the responsibility of the child’s social worker.  They will ensure that the DLA is being spent appropriately and is supported by the SSW.  If there is evidence that the foster carer is not spending the DLA on the child, it would be appropriate to make another adult the appointee.

Examples of how the money could be spent:

• activities that are costly such as horse riding and after school clubs
• provision of an escort to enable social events to be attended
• extra helper for an outing or holiday
• taxi fares for trips out
• extra support such as a child sitting service, using individuals who are Disclosure and Barring Service checked
• individual equipment such as a computer or communication aids
• laundry service and appliances
• replacement clothing where there is excessive wear and tear on clothing
• additional heating costs
• additional help with personal care
• anything that will improve the child’s life
• special toys to meet a child’s needs, which may be of therapeutic value
• domestic help to allow a carer to spend more time with their child

Upon receipt of the allowance, all foster carers should discuss how the money will be spent.  This discussion must be recorded by the supervising social worker (SSW).

Each looked after review will consider how the money has been spent to benefit the child.  Additional activities for children receiving a DLA should not routinely be paid for from additional fostering allowances.

Tax liability and insurance

Information relating to taxation essential to the foster carer role is available on the HMRC website.

Advice is also available from the Fostering Network.

Insurance

As a carer, you must have:

• buildings and content insurance
• notified your insurers of your fostering status

If this increases your premiums, we will meet any additional premium.

Our insurance also covers carers for loss or damage caused by a child in their care.

In the event of a claim:

1. You must first contact your insurance provider and make a claim.
2. If they decline to satisfy the claim, you must ask for this in writing.
3. You must then complete a claims form as soon as possible after the incident.  The form is available from your supervising social worker (SSW).  Each incident must be claimed on a separate form. You must include proper estimates (on headed paper and with clear details of work to be carried out).  You will need one estimate for claims under £500 and two for those over £500.  Insurers may at times request additional information.

Give the signed form with the estimates attached to your SSW.  They will then pass it to their team manager. The team manager will take responsibility for managing the claims process.  They will arrange for you to be notified of progress.

You must notify your car insurers that you are fostering.  If your insurers fail to provide cover as a result, you should seek other quotes.  Should this result in a higher premium, we will meet the additional premium cost. We do not provide cover for damage to cars attributable to your fostering role.

Overpayments

Please also quote the name of the child it is in reference to and your vendor or supplier number.

You should contact your SSW in the first instance if:

Example foster care payments

The following represents the approximate cost of caring for a child based on the fostering network guidance.

This table is a guide only.  For example, it is not expected that you would spend £34 per week, every week on clothing for a 5 to 10-year-old. Any left-over money you might want to save for:

• more expensive clothing such as a winter coat
• additional holiday clothing
• other expenditure

Discuss with your SSW if you are in any doubt.