Allowance vs fee — what's the difference?
Foster carers receive two types of payment:
- Fostering allowance — a weekly payment to cover the cost of caring on a day-to-day basis (food, clothing, transport, activities). This is not taxable income.
- Professional fee (or skill fee) — an additional payment that recognises your skills and experience as a carer. This is taxable but covered by generous HMRC tax relief.
Government minimum allowances (2025/26)
The UK government sets minimum weekly allowances that local authorities and most IFAs must meet or exceed:
- Baby (0-1) — £173 per week
- Pre-primary (1-4) — £176 per week
- Primary (5-10) — £195 per week
- Secondary (11-15) — £222 per week
- 16-17 years — £260 per week
London boroughs pay higher rates. IFAs (independent fostering agencies) typically pay significantly above these minimums.
What do IFAs pay?
Independent fostering agencies often offer between £350 and £600+ per week — combining allowance and fee. Some specialist placements (therapeutic, parent-and-child, remand) can exceed £800 per week.
The exact amount depends on:
- The age of the child
- The type of placement (standard, specialist, emergency)
- Your experience and qualifications
- Your location
Tax relief for foster carers
HMRC provides a generous Qualifying Care Relief for foster carers. You receive a tax-free allowance of:
- £10,000 fixed annual amount per household
- Plus £200 per week for each child under 11
- Plus £250 per week for each child aged 11+
For many foster carers, this means you pay little or no tax on your fostering income.
Is it about the money?
Foster caring is a vocation, not a job — and agencies will always look for genuine motivation first. But it's also important that you can support yourself financially while caring for a child. The allowances and fees are designed to make fostering financially sustainable.