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Fostering Allowances 2024/2025

foster parents looking at allowances

Becoming a foster parent is a fulfilling way to make a difference in a child’s life. If you’re exploring this possible life change, it’s important to understand the financial implications. After all, providing for an extra child can be expensive, especially because either you or your partner may need to stop working to focus solely on the child. That’s where the fostering allowance comes into play. In this blog, we discuss more about foster care payments for 2024/2025, and how they are broken down.

What is the Foster Carer Allowance?

Foster carers in the UK receive benefits to support the costs of caring for a foster child. The weekly payment foster parents receive is divided into two main parts

Childcare Allowance

First, the childcare allowance covers living costs like food, clothing, uniforms, school supplies, leisure activities and holidays. If a child arrives with limited clothing, discuss this with the child’s social worker for potential emergency payments. Foster parents should plan to buy age-appropriate toys and activities, being aware that special possessions may move with the child to help them transition to a new home.

Fostering Fee

The second portion of the weekly payment is the fostering fee. This is the income provided for the role of being a foster parent.

How Much Do You Get for Fostering a Child?

Wondering how much foster carers get paid? At Mosaic Foster Care, foster parents will typically receive around £700 per week combined fostering fee and allowance depending on the age of the child. Across the nation and in other foster homes, you may find the minimum is usually £165 to £289 a week, though the allowance varies based on the child’s age, specific needs, where you live and your skill set.

Annual Review of the Fostering Allowance and Fee

The government reviews how much foster parents get paid every year. At Mosaic Foster Care, we match the government’s recommended allowance to further cover childcare costs. We also review the fostering fee annually, though increases are typically small because fees from placing authorities are fixed.

Payments During Notice Periods

Local authorities generally require a 28-day notice period to end a placement, allowing time for proper planning and matching for the child’s next placement. Foster parents continue receiving payments during this notice period as long as the child remains with them. Payments cease once the child moves to a new home.

What is included in my Fostering Allowance?

Fostering Retainer

After having a child in placement for 3 months or more, foster parents are eligible for a retainer payment of £250 per week for up to 4 weeks between placements. This helps cover periods without a child in placement and stops once a new child is placed.

Travel Expenses

Foster parents can claim back expenses directly related to fostering tasks, such as transporting children to appointments or attending fostering events. You can claim 45p per mile for the first 10,000 miles of travel per year and 25p per mile thereafter. A deduction of £20 per week is made from expenses to cover local travel claims like school runs and medical visits.

Support and Activities

Foster parents are generally expected to contribute towards their foster child’s activity costs while out with support staff, whether as a group or during one-on-one activities. Planning these activities in advance with support workers is advisable. Costs for support workers are covered by Mosaic Foster Care.

Supportive Foster Care (SFC)

Foster parents receive up to 3 weeks of paid supportive foster care per year, which includes their fostering fee but not the childcare allowance. The foster parent providing SFC will receive their full fostering fee plus a partial daily childcare allowance.

Tax Arrangements

Special tax rules apply to foster carers, allowing most to pay little or no tax. Foster carers can earn up to £18,140 from fostering before needing to pay tax, thanks to tax exemptions and care allowances. They can claim income support, council tax reduction and other benefits but cannot claim the Child Benefit or Child Tax Credit for foster children. Foster carers must register as self-employed and file tax returns to receive these benefits.


Foster carers are required to have home and contents insurance, as well as car insurance if applicable. Your insurers will be required to know that you foster a child as well as the type of fostering that you do, as this along with any other changes in household circumstances, could lead to policy changes.

If your home, contents or car are damaged through your role as a foster parent, file a claim through your insurance company like you normally would. Keep your supervising social worker and the child’s social worker up-to-date, as they may be able to offer guidance or support through the process.

Learn More About Being a Foster Parent in the UK

We know your motivation for fostering a child has little to do with the foster parent pay—the allowance simply makes your decision more financially feasible. If you’re looking for an outstanding fostering agency to support you on this rewarding journey, look to Mosaic Foster Care. We focus on long-term therapeutic foster placements to ensure children remain in a stable environment until adulthood. Our personalised support system includes tailored therapy and extensive training to help more foster families thrive. If you’re interested in becoming a foster parent, contact us to learn more about making a difference in a child’s life.

Mosaic Foster Care is a Private Ltd Company (reg no 07133494) providing fostering placements for children and young people to age 18.
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