When a child is placed in foster care, the cost of caring for them is paid to the foster carer in the form of a fostering allowance.

Many fostering services also pay a fee on top of this allowance, in recognition of the work they do in caring for these children. This additional payment is classed as the “reward” element of the fee.

To ensure that no foster carer is out of pocket because of their caring role, a recommended national minimum allowance was introduced by the Department for Education.  There is currently no recommended amount for the reward element, and each fostering service will set this separately.

The national minimum allowance has been calculated on the basis of the minimum amount that any foster carer needs to meet the cost of caring for a foster child. Recommended rates, excluding rewards, are as follows:

Frequently Asked Questions – fostering income and Tax