Financial support

Foster carers in west London receive a fostering allowance to cover the cost of caring for each child, along with a professional fee that serves as an income. The total payment can vary depending on the local authority and the specific needs of the child, but on average, foster carers receive a minimum of £314 per child, per week.

This payment includes allowances for daily expenses such as food, clothing, and transportation, as well as additional support for special occasions like birthdays and holidays. Some local authorities also offer extra benefits, such as council tax reimbursements and retainer fees for continuous placements.

Foster care payments are generally not taxed. Foster carers in the UK, including those in west London, are considered self-employed and benefit from a generous tax-free allowance known as Qualifying Care Relief. This means that most of your fostering income is exempt from tax.

Under Qualifying Care Relief, you do not pay tax on the first £10,000 you earn from fostering, plus an additional weekly tax-free amount for each child in your care. This allowance is designed to cover the costs of caring for the child and provide some income for the foster carer. Talk to one of our fostering experts for more details.

As a foster carer you may be entitled to claim benefits and tax credits. The allowances you receive from fostering are normally disregarded as income or only taxable profit from your fostering is taken into consideration for the purposes of calculating your entitlement to benefits.

People who claim benefits already also may not automatically lose those benefits if they start to foster. The exception to this is job seekers allowance as a foster carer who is looking after a child in placement will not usually be available for work.

The Department for Education funds Fosterline, which offers confidential and impartial advice, information and signposting on a broad range of issues of concern to current and prospective foster carers, including specialist tax and benefits advice and support to the foster carer and members of the fostering household.

Visit the Fosterline website or contact them on Freephone number 0800 040 7675. This phone line is open Monday to Friday between 9am and 5pm.

Visit GOV.UK for further information about claiming benefits while fostering.

Yes, all foster carers in the UK are classed as self-employed and are not employed by their local authority fostering service. If you become a foster carer you will need to register as self-employed with HM Revenue & Customs (HMRC) for Income Tax self-assessment and National Insurance Contributions (NICs).

To make fostering an affordable choice, the government applies a generous tax-free allowance to fostering income.