Foster parenting is a life-changing responsibility that offers emotional rewards far beyond the financial aspects. However, for individuals and families considering this noble path, it’s natural and necessary, to ask: “How much do foster parents get paid monthly?” Understanding the financial dynamics of fostering can help you make an informed decision and ensure the stability needed to provide a nurturing home.
In this comprehensive guide, we will explore how foster care payments work in the UK, what the average monthly income looks like for foster parents, how taxes are handled, and what these payments are intended to cover.
Understanding Foster Care Payments
Before diving into exact figures, it’s important to understand what foster care pay often referred to as a fostering allowance actually includes. Foster parents receive a weekly allowance per child, which is designed to cover the costs of caring for that child, along with a professional fee that acknowledges the carer’s role, experience, and training.
Two Main Components of Foster Pay:
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Child’s Allowance – Covers food, clothing, travel, activities, and general needs of the child.
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Professional Fee – Compensates foster carers for their time, training, and responsibility.
Average Monthly Foster Care Pay in the UK
Foster carers approved by reputable agencies such as the National Fostering Group typically earn around £2,040 per month. This equates to approximately £24,500 annually, with some carers earning more depending on their experience, location, and the type of care provided.
Importantly, most of this income is tax-free and does not affect state benefits, making it a stable and valuable source of income .
Factors That Influence Foster Care Payments
There isn’t a “one-size-fits-all” amount when it comes to fostering allowances. Several factors influence how much a foster parent may receive monthly, including:
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Type of fostering (short-term, long-term, emergency, therapeutic, parent-and-child)
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Number of children in care
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Children’s ages and needs (e.g., children with complex emotional or physical needs may warrant higher payments)
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Foster parent’s experience and training
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Location in the UK (Some areas offer higher allowances due to living costs)
Agencies also offer Bridging Retainer Payments to foster carers between placements, ensuring continued financial support even when they aren’t actively fostering a child that how much do foster parents get paid monthly.
Weekly to Monthly Conversion
Since fostering allowances are paid weekly, it’s helpful to understand what these payments look like on a monthly basis:
| Weekly Allowance | Estimated Monthly Income |
|---|---|
| £450 | ~£1,950 |
| £500 | ~£2,167 |
| £600+ | £2,600 – £3,000+ |
These estimates reflect average to high-range fostering allowances and include both the child’s allowance and the professional fee. The amounts can vary significantly depending on the specific circumstances and agency guidelines.
Tax and National Insurance Implications
A major advantage of fostering income is its favorable tax treatment under the Qualifying Care Relief (QCR) scheme.
Key Points:
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Most foster carers pay little to no income tax on their fostering income.
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You are considered self-employed and must register with HMRC.
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National Insurance contributions may be required, usually at Class 2 or Class 4 rates.
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At the end of each tax year, you complete a simple self-assessment to determine if any tax is due.
How Qualifying Care Relief Works:
The QCR scheme allows foster carers to earn up to a set threshold tax-free, which consists of:
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A fixed annual amount (currently £10,000)
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An additional weekly amount per child in your care (varies by age)
Only the income exceeding this combined threshold is considered taxable. For most carers, their total fostering income remains under this limit and how much do foster parents get paid monthly.
Foster Care Pay and State Benefits
Fostering allowances are excluded from most benefit calculations, meaning:
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You can still receive Universal Credit, Housing Benefit, or other income-related support.
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Foster care income does not count towards the benefit cap.
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You may be eligible for Working Tax Credit, depending on your circumstances.
However, every situation is different, so it’s advisable to speak with a financial advisor or your fostering agency’s support team to clarify your specific benefits status.
Can You Work While Fostering?
Yes but with important considerations.
For Couples:
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One partner can work full-time.
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The other should be available full-time or have flexible working hours.
For Single Carers:
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Part-time or flexible employment is typically allowed.
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Full-time employment may only be suitable in rare cases with older, more independent children.
The key is to ensure that someone is always available to meet the child’s needs, attend meetings, and provide consistent emotional support that how much do foster parents get paid monthly.
What Does the Fostering Allowance Cover?
The fostering allowance is not “extra income” or profit; it’s intended to cover all the day-to-day costs associated with raising a child. This includes:
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Food and drink
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Clothing
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Transport and travel
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School supplies and activities
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Toys and entertainment
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Personal care
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Savings for the child
The professional fee portion of the allowance is yours to manage as you see fit, reflecting your time and responsibilities as a carer.
Frequency of Payments
Fostering agencies typically pay allowances on a weekly basis, providing a steady and predictable stream of income for how much do foster parents get paid monthly. This frequency helps foster careers manage regular expenses more effectively and provides reassurance during longer placements or between placements with retainer payments for that how much do foster parents get paid monthly.
Earning Potential Beyond the Average
While the average is around £2,040 per month, your earnings can rise based on:
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Taking on multiple children
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Caring for children with complex needs
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Providing emergency or therapeutic placements
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Advancing your training and qualifications
Some highly experienced foster carers or those specializing in therapeutic care report monthly earnings up to £3,000 or more, tax-free in many cases.
Is Fostering Financially Viable?
Yes, fostering can be financially sustainable, especially when you account for:
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The tax-free nature of most of the income
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Weekly payments that cover both the child’s needs and your role
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Potential eligibility for additional state support
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Retainer payments between placements
That said, most carers don’t enter the field for money alone. The emotional rewards watching a child grow, providing a safe space, and knowing you’ve made a real difference are what truly motivate most foster parents for that how much do foster parents get paid monthly.
Conclusion: A Rewarding Career with Real Financial Support
So, how much do foster parents get paid monthly? The short answer: around £2,000 per month, often tax-free, with the potential to earn more depending on your experience, the type of care provided, and your fostering agency.
While money shouldn’t be the only reason to become a foster parent, having a clear understanding of the financial support available can help you feel more confident in taking this step for how much do foster parents get paid monthly. Reputable fostering agencies are transparent about their allowances and committed to supporting you, not only with payments but with training, resources, and 24/7 assistance.
If you’re considering becoming a foster carer, take the time to speak with different agencies, ask detailed questions, and understand how fostering will fit into your financial and personal life. The support is there and the need for compassionate, dedicated carers has never been greater.