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Fostering allowances tax relief tax credit working tax credits income rules

Fostering allowances - pay

All foster carers receive an allowance to cover the cost of caring for a child in their home.

For foster carers working on behalf of an Independent Fostering agency, this is set by the individual agency, it can be dependent on age however is about £380 a week per child placed.

There are National guidelines (see below) which recommend basic levels of allowances for foster carers which Local Authorities tend to use.

All payments that a foster carer receives are taken into account when determining whether they need to declare earnings to the tax office.

The total payments received in a year (or pro-rata) are compared to the exemptions allowed and any difference above this limit should be declared to the tax office, and tax paid through ‘self-assessment.


Weekly rates

  Babies Pre-primary Primary Secondary Secondary (16-17)

 Base £106 £108 £119 £137 £159

 South East £117 £120 £134 £152 £179

 London £122 £125 £140 £158 £186


 Weekly rates

  Babies Pre-primary Primary Secondary Secondary (16-17)

 Base £109 £111 £122 £140 £164

 South East £120 £123 £137 £156 £184

 London £126 £129 £144 £163 £191


The national minimum allowances are the base mimimum rates and these are used as guidelines by Local Authorities.

The national minimum allowance rates for 2009/10:

The national minimum allowance rates for 2010/11:

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