Fostering is a life-changing opportunity not just for the child or young person in care, but for the foster carer as well. While the primary motivation for fostering is to provide a safe and supportive environment for vulnerable children, it’s natural to have financial questions. Many people considering fostering wonder whether it can be a sustainable career choice.

The short answer is: yes, fostering can be financially viable. Foster carers receive a fostering allowance designed to cover the costs of looking after a child, as well as a reward payment in recognition of their commitment. Additionally, there are favourable tax arrangements that make fostering an even more practical career option.

How Are Foster Carers Paid?

Foster carers are classed as self-employed and receive fostering allowances to help with the cost of caring for a child. These payments vary based on factors such as:

• The child’s age and needs
• The fostering agency or local authority
• Whether the foster carer has specialist skills or training

Every fostering agency has different pay structures, but at Fostering2Inspire, we ensure that our foster carers receive competitive and generous allowances to support both the child’s well-being and the foster carer’s financial stability.

How Much Can Foster Carers Earn?

Foster carer pay depends on individual circumstances, but here’s an example of what foster carers can earn under the Qualifying Care Relief (QCR) scheme:

Tax-free threshold: 

• £10,000 per household

Additional weekly payments:

• £200 per week for children under 11
• £250 per week for children aged 11-18

For example, if you provide full-time care for a 12-year-old child for a year, your tax-free income could be:

• £10,000 (fixed threshold)
• 52 weeks x £250 (£13,000)
• Total: £23,000 tax-free income

For those fostering multiple children, earnings can be significantly higher while still benefiting from reduced tax obligations.

Do Foster Carers Pay Tax?

Thanks to the Qualifying Care Relief scheme, most foster carers pay little or no tax on their fostering income. The fixed exemption of £10,000 per year means that tax is only due on earnings above this threshold, and even then, only a portion may be taxable after additional allowances.

Can You Receive Benefits While Fostering?

Fostering does not automatically affect your entitlement to benefits. Depending on your personal circumstances, you may still be able to receive:

• Child Benefit (for your own children)
• Universal Credit
• Housing Benefit
• Tax Credits

These will be assessed based on your overall household income, and some benefits are calculated excluding fostering allowances.

Fostering as a Career Choice

Fostering is a full-time commitment that requires patience, dedication, and emotional resilience. Foster children may have experienced trauma or upheaval, meaning carers need to provide consistent support and guidance. While fostering can be challenging, it is also deeply rewarding.

As a respected and valued profession, foster carers receive competitive pay, tax benefits, and ongoing support. At Fostering2Inspire, we ensure that our carers have access to training, professional development, and financial stability to make fostering a viable long-term career.

Interested in Becoming a Foster Carer?

If you’re considering fostering and want to learn more about foster carer pay and allowances, we’d love to hear from you. Get in touch with Fostering2Inspire today to explore how fostering could work for you.