What financial support do foster carers receive?
All South Gloucestershire foster carers receive an age-related allowance and an additional fostering fee. The weekly age-related allowance is based on the age of the child or young person placed with you. The allowance covers all food, clothing, pocket money, local fares, heating, other utilities, telephone calls, entertainment, leisure and other normal day-to-day expenses involved in caring for a child.
The fee is based on which 'band' you are in. The fee bands recognise the training, skills and experience which foster carers bring to the task and are divided into three different bands. Each band in the scheme reflects the increasing level of skill and experience. Whilst most new carers will be placed in 'band one' for their first year of fostering, the scheme does recognise special experience and skills. This will be discussed during the assessment process. In order to progress up the bands, foster carers will need to complete core training and complete 44 weeks of satisfactory fostering.
There are some additional financial allowances and benefits:
Retainers
A retainer is paid for all vacant placements for children aged 11- 18. The retainer will be paid at the full fee level for 28 days after a placement is vacant (this does not include the age-related allowance). There is an expectation that foster carers might be asked to provide additional support to other carers or children during this time - for up to 15 hours per week. For placements involving children under 11 this retainer will only be paid if the carer has been specifically approved as a designated foster carer.
Holiday pay
All carers are entitled to 14 nights per annum paid break (pro rata) from fostering per year. This is an allowance for carers and is not based on the number of children placed. This will be discussed with you during the assessment.
Special and exceptional schemes
Children in foster care will generally have many needs. There are some children however who will have exceptional levels of need that require an additional input from the foster carer in terms of time and skills. The special and exceptional schemes are designed to offer an additional payment in these exceptional circumstances. More details of these schemes are available from the marketing and recruitment officer.
Tax benefits
Currently the fostering allowance is not taxable unless you are receiving more than the individual limit set by the Inland Revenue. For more information on current individual limits you can contact your local tax office or go to their website.
What about tax and national insurance
Foster carers are responsible for paying their own tax and national insurance.
Currently the fostering allowance is not taxable unless you are receiving more than the individual limit set by the Inland Revenue, which is made up of two elements:
- A fixed amount per household of £10,000 for a full year
- An additional amount per child for each week or part week that the individual provides foster care. The amounts are £200 a week for a child aged under eleven and £250 a week for a child aged eleven or older
If you receive more than your individual limit then you will need to seek advice from your local Inland Revenue tax office.