Chancellor Jeremy Hunt has announced increased tax relief for foster and shared lives carers, improved support for care leavers and enhanced help for disabled people to enter the workplace, in his Spring Budget. This is in addition to the announcement that in England, above-inflation rises in the National Minimum Fostering allowances will be implemented from 6th April 2023
Currently, a fixed amount of £10,000, plus
Weekly amounts for each cared-for child or adult, currently:
£200 for each child under 11 years of age
£250 for each child 11 years of age or older
£250 for each adult
The earning threshold for the scheme and extra relief will rise in April to:
A fixed amount of £18,140, plus
Weekly amounts for each cared-for child or adult:
£375 for each child under 11 years of age
£450 for each child 11 years of age or older
£450 for each adult
This increase will ensure that the vast majority of foster carers are taken out of tax on their care income and restore the value of the relief back to the original intention of the 2003 level. The proposed legislation revisions will introduce a new section to link the fixed amount and weekly amounts to CPI inflation. This increase linked to inflation will first take place in the tax year 2024 to 25.
You can read the full policy paper here.
Contact FL to receive confidential, impartial sources of advice, information, and support. Our dedicated advisors are here to answer any questions you may have on how this affects your finances. Call us on 0800 040 7675 or email us at enquiries@fosterline.info