Money shouldn't be the only reason you foster — but it's a perfectly valid question, and one that every prospective carer asks. Here's a transparent breakdown of how foster carer pay works in the UK.
The two parts of fostering income
Foster carer income typically consists of two components:
- Fostering allowance — a weekly payment to cover the cost of looking after the child (food, clothing, transport, activities, pocket money)
- Skills-based fee (reward element) — additional payment for your time and expertise, paid by some agencies and local authorities
Not all agencies pay a fee on top of the allowance. Local authorities often pay allowance only, while independent fostering agencies (IFAs) typically offer both.
How much is the fostering allowance?
The UK government sets a national minimum allowance that all local authorities must meet. For 2025/26, the typical weekly minimums in England are expected to be around:
- Baby (0–2): £170 per week
- Pre-primary (3–4): £176 per week
- Primary (5–10): £195 per week
- Secondary (11–15): £225 per week
- 16–17 years: £260 per week
Many local authorities and IFAs pay significantly more than the minimum. London boroughs tend to pay the highest rates.
What about fees?
If your agency pays a fee on top of the allowance, you could receive an additional £100 to £400+ per week per child, depending on your experience, training, and the complexity of the placement.
Some agencies offer tiered fee structures based on Skills Level:
- Level 1 (new carers): £100–£150/week
- Level 2 (experienced): £150–£250/week
- Level 3 (specialist): £250–£400+/week
Total weekly income examples
Combining allowance and fee, here's what total weekly earnings might look like for a single child placement:
- Local authority, no fee: £170–£260/week (allowance only)
- IFA, Level 1 carer: £380–£450/week
- IFA, experienced carer: £450–£850/week
- Specialist placement (IFA): £600–£1000+/week
A foster carer looking after two children with an IFA at Level 2 could earn in excess of £45,000 per year — before tax relief.
Tax relief for foster carers
Foster carers in the UK benefit from a generous tax exemptionunder HMRC's Qualifying Care Relief scheme:
- You receive a fixed tax-free amount of £18,140 per year (2025/26)
- Plus an additional £375 per week for each child under 11, or £450 per week for each child aged 11+
- If your total fostering income is below the combined threshold, you pay no tax at all
In practice, the vast majority of foster carers pay no income tax on their fostering income. You are still required to register as self-employed and submit a Self Assessment tax return.
Other financial benefits
- Holiday allowances — many agencies provide additional payments for holidays
- Birthday and festival allowances — typically £100–£300 per year per child
- Mileage and travel expenses — reimbursed for contact visits, appointments, etc.
- Insurance — your agency should provide liability and property damage cover
- Retainer payments — some agencies pay a retainer when you're between placements
Can I work and foster?
Yes. Many foster carers continue to work, particularly those offering respite care or caring for school-aged children. Some placements, however — particularly for very young children or those with complex needs — may require you to be available full-time.
Your agency will discuss this with you during your assessment and match you with placements that fit your availability.
Next steps
Now that you understand the financial picture, you might want to:
- Check who can foster — the eligibility basics
- Understand the fostering process from start to finish
- Search for fostering agencies near you to compare what they offer