Fostering should be emotionally supported and financially realistic.
Fostering is a rewarding way to make a difference in a child’s life while receiving financial support. We offer a weekly fostering allowance starting at £440 per child, which can increase to £660 per week depending on the child’s needs and circumstances. For Parent and Child fostering, allowances begin at £700 per week. Little Acorns also provide additional payments in the Summer, at Birthdays and Christmas.
Generous Tax Relief for Foster Carers
Fostering is considered self-employment, which comes with significant tax benefits designed to support you. Under qualifying Care Relief, each foster carer benefits from a fixed tax exemption of £20,440 per year. Combined with the standard personal allowance of £12,570, this means you have a total tax-free allowance of £32,260 annually.
In addition, foster carers receive further tax-free exemptions based on the children in their care:
- £435 per week for children under 11
- £515 per week for children aged 11 and older
Real-Life Example: The Smith Family
Mr. and Mrs. Smith foster a sibling group of two children—an 8-year-old and an 11-year-old—over the course of a year.
- As foster carers, they receive a basic household tax allowance of £20,440, plus Mrs. Smith benefits from her personal allowance of £12,570.
- They also qualify for additional tax-free allowances:
- £26,780 for the 11-year-old
- £22,620 for the 8-year-old
In total, the family has a tax-free allowance of £82,410.
With a fostering allowance of £45,760, Mrs Smith pays no tax, equivalent to earning £60,707 per year before tax.
What Does the Allowance Cover?
The fostering allowance ensures you can provide the best possible care for the children. It covers:
- Household expenses
- Food and clothing
- Travel and school-related costs
- Activities and all the essentials a child needs
Fostering isn’t just a voluntary act of kindness, it’s a fully supported role that ensures children in care get the same opportunities as any child.
Additional Support and Benefits
National Insurance Contributions
As a foster carer, you qualify for National Insurance (NI) credits that count towards your state pension. These credits are Class 3 credits. You should not however have more than half of your total NI record made up of credits
Receiving Other Benefits?
Fostering payments usually don’t affect benefits such as:
- Income Support
- Income-Based Job Seeker’s Allowance
- Housing Benefit
- Council Tax Benefit
- Disability Living Allowance
- Working Tax Credits
However, you won’t be able to claim Child Tax Credit or Child Benefit for a fostered child.
Ready to Start Your Journey?
Fostering is more than just a role—it’s a chance to change lives. With competitive allowances, generous tax benefits, and extensive support, you can focus on providing a safe, nurturing home for children who need it most.