Fostering Allowances, Payments, and Financial Support
Fostering Financials
Fostering is both rewarding and, at times, demanding. At Apex, we believe foster carers should receive financial support that enables them to provide the highest level of care. Raising a child comes with costs, and our fostering allowances ensure that all carers can meet the needs of the young people they support.
We actively involve foster carers in setting allowances, and in compliance with Fostering Regulations, these undergo annual reviews.
Foster Carer Payment Rates
How Much Do Foster Carers Get Paid?
Fostering with Apex, you will receive a minimum of £450 per week, tax-free, for caring for one child.
For children with complex needs, this can increase to £750 per week, depending on the level of care required.
Foster carers are paid every week, one week after a young person is placed in their home.
On-Going Fees & Payment Security
Some fostering agencies reduce payments for long-term placements or siblings. At Apex, we do not decrease payments for siblings, and we ensure that any reductions agreed upon by local authorities do not impact carers.
If a local authority agrees to a higher payment but plans to review and potentially reduce it later, we communicate this clearly to foster carers so they can make informed decisions.
Additional Financial Support for Foster Carers
Savings for Young People
While it is not mandatory for foster carers to set up savings for a young person, it is highly encouraged. Some local authorities automatically set aside £5 per week for savings, but if they do not, Apex will do this on their behalf.
Pocket Money
Foster carers are required to set up a Go Henry Card (or similar) for children over five years old, ensuring young people receive pocket money and can learn financial responsibility.
Pocket money is monitored by the foster carer, and spending limits can be set. Apex provides guidance on appropriate amounts based on the child's age.
Clothing Allowance
While foster carers receive a weekly allowance, it is not expected that they spend this amount every week. Instead, many carers save the funds and take the child shopping once a month or allow older children to manage their clothing allowance independently.
Expenses & Additional Payments
Celebrations & Special Occasions
Many children in foster care have not had the experience of celebrating birthdays or achievements. It is important to mark special occasions with presents, a cake, and, where possible, a party with friends.
-
Apex sends each young person a £20 Amazon voucher on their birthday.
-
For Christmas or other significant celebrations, Apex provides a £50 voucher.
Holiday Payments
Foster carers receive two additional weeks of payment per year to help cover the costs of taking a child on holiday.
Funding for Extracurricular Activities & Special Opportunities
We believe young people should never miss out on opportunities due to financial limitations. If a child has the chance to participate in an overseas sports competition or a high-cost extracurricular activity (such as horse riding competitions), Apex will contribute towards these costs.
Insurance for Foster Carers
Foster Carer Home & Personal Insurance
Apex provides insurance coverage for injury, damage to property, and incidents involving a foster carer, family member, or their home.
It is essential to inform your home insurance provider that you are a foster carer.
Agency insurance includes:
-
Up to £100,000 coverage for fire damage (if caused by a foster child).
-
Additional liability coverage for property damage or injury related to fostering.
Claiming Benefits While Fostering
Foster carers may still be eligible for some government benefits, but fostering payments can impact eligibility.
Key Points on Benefits & Fostering:
-
If you are already receiving benefits, you must inform the relevant agency that you are also receiving a foster care allowance.
-
If a foster child qualifies for Disability Living Allowance (DLA) or Personal Independence Payment (PIP), foster carers may also be eligible for Carer’s Allowance.
-
Use a benefits calculator to check what you are entitled to.
Tax Arrangements for Foster Carers
Do Foster Carers Pay Tax?
Foster carers are self-employed and must submit a tax return to HMRC each year. Apex provides a remittance statement in April to assist with tax filings.
Foster carers benefit from Qualifying Care Relief, which reduces taxable income:
-
£18,140 tax exemption per household.
-
Additional tax relief per week for each child in placement.