Foster care pay and allowances
Providing a safe and nurturing home to a child in need is one of the most rewarding commitments you can make. At Lincolnshire Fostering Service, we recognize the dedication of our foster carers by offering a comprehensive financial support package. This includes weekly allowances, additional payments for special occasions, and various reimbursements to cover the costs associated with fostering.
Weekly Fostering Allowances (Effective from 1 April 2026)
Our weekly allowances are designed to cover the day-to-day expenses of caring for a child. The rates vary based on the age of the child:
- Ages 0–4: £192.98
- Ages 5–10: £219.38
- Ages 11–15: £272.78
- Ages 16 and over: £331.66
These allowances are intended to cover:
- Food and everyday expenses
- Clothing
- Pocket money, clubs, and activities
- Day trips, including school trips
- Transportation to school within a three-mile radius
Note: For school commutes beyond three miles, additional transportation costs will be reimbursed.
Additional Payments and Bonuses
To further support our foster carers, we offer additional payments:
- Special Occasions: Extra allowances are provided for birthdays, religious festivals, and holidays to ensure children can celebrate these events meaningfully.
- Retention Bonus: To acknowledge the commitment of our carers, we offer annual retention bonuses:
- After 1 year: £500
- After 5 years: £1,000
- After 10 years: £2,000
Reimbursements and Extra Support
We understand that fostering can involve additional expenses. Therefore, we provide reimbursements for:
- Mileage: 45p per mile for travel related to the child's care, including attending meetings and transporting the child to activities.
- School Uniforms: Grants are available when a child changes schools and requires a new uniform.
- Specialist Equipment: Funding for items such as club uniforms or equipment necessary for the child's hobbies or educational needs.
- Exceptional Holidays: A grant of up to £300 per child may be available for exceptional or educational holidays, subject to approval.
Payment Schedule
Payments are made weekly, with the payment week running from Sunday to Saturday. Carers receive their payments by the following Friday via BACS directly into their bank accounts.
Tax, National Insurance, and Benefits
Fostering allowances are typically tax-free due to qualifying care relief. However, it's important to note:
- Foster carers cannot claim Child Benefit or Family Tax Credit for foster children.
- Some foster children may be eligible for Disability Living Allowance (DLA), which is intended to enhance the child's life and should be used accordingly.
For detailed information on tax and benefits related to fostering, please consult with your financial advisor.
If you're interested in making a difference in a child's life, we encourage you to reach out. Our team is here to answer your questions and guide you through the process.
More information on foster carers tax and the qualifying care relief is avaialbe from gov.uk.