The simple answer is yes. Foster carers do receive financial support. Fostering is an incredibly rewarding role, but it also comes with real responsibilities and costs. To make sure carers can provide a stable, nurturing home without being out of pocket, foster parents receive a fostering allowance. And may also benefit from tax relief and access to certain benefits.
We believe foster carers should be properly supported. Both emotionally and financially, so they can focus on what truly matters: providing excellent care to children and young people.
Understanding Fostering Allowances
Foster carers receive a weekly fostering allowance for each child in their care, which Ascent pay fortnightly. This allowance is designed to cover the costs of caring for the child, including:
- Food and clothing
- Transport to school, appointments, family time, or activities
- Pocket money and hobbies
- Household expenses
- Special occasions and celebrations
At Ascent, our fostering allowances are designed to reflect the real costs of caring for children, ensuring that our carers are never financially disadvantaged for the incredible work they do. As we are a therapeutic fostering agency, our fees reflect the complexity and wrap-around support we provide to the foster carer, child and professional network.
Tax Relief for Foster Carers
Foster carers benefit from a special tax scheme introduced by HMRC called Qualifying Care Relief. This makes the tax process straightforward and often means that carers pay little or no tax on their fostering income.
Under this scheme:
- You can earn up to a set tax-free allowance each year for your fostering work (currently £18,140 per household, plus an additional weekly amount for each child in your care).
- If your fostering income stays below this threshold, you don’t need to pay tax on it.
- Even if you earn more, you’ll only pay tax on the amount above the allowance.
This system recognises the valuable service foster carers provide and ensures fostering remains financially sustainable for families.
Benefits and Additional Financial Support
Foster carers may also be eligible for certain state benefits, depending on their circumstances. These could include:
- Child Benefit: Usually not paid for foster children (since the fostering allowance replaces it).
- Universal Credit: Foster carers can usually claim Universal Credit for themselves, but the fostering allowance isn’t counted as income when calculating entitlement.
- Council Tax Reduction: Depending on your income and local authority, you might qualify for a reduction.
Each carer’s situation is unique, so at Ascent, all our foster carers are registered with Foster Talk, who are able to offer independent support and advice on fostering finances.
Fostering Is Not Just About Money — But Support Matters
Money is not the main reason people choose to foster. Most foster carers want to give a child a safe and caring home. They often say the greatest reward is seeing a child smile, feel safe and grow in confidence.
Even so, pay and day-to-day support still matter. Foster carers should not have to worry about late payments or unclear fees. At Ascent, we explain your pay and allowances in clear terms. We also make all payments on time. You will always know what support you can receive.
Our support goes far beyond pay. Each carer receives help from a qualified social worker and a Therapeutic Consultant. You can also use our out-of-hours service when you need it. We provide Stay Over Breaks, also known as respite, as well as regular training and events.
Foster carers do vital work. We are here to support you at every stage. If you are thinking about fostering, speak to our team. We can explain how foster care pay works and answer your questions.