How much is the Fostering Allowance in London?
Understanding foster carer pay, allowances, and tax relief in London. Compare Independent Fostering Agencies (IFAs) vs Local Authority rates.
💡 Key Takeaways: Fostering Pay in London
- ✓IFA Rates: Independent Fostering Agencies (IFAs) in London pay between £350 and £800+ per week per child.
- ✓Local Council Rates: Local Authorities in London pay between £150 and £350 per week.
- ✓Qualifying Care Relief (QCR): Fostering pay is largely tax-free under UK tax laws. Carers enjoy a tax-free allowance of £18,140 plus £375–£450 per week per child.
- ✓Right to Switch: Carers can transfer from a local council to an independent agency in London to access higher allowances and 24/7 dedicated support.
Fostering Pay Structure in London
Fostering allowances in London are designed to cover the cost of caring for a child, plus a professional fee for your time, skills, and dedication. While the government sets national minimum allowances, the actual amount you receive will vary significantly depending on whether you foster with a Local Authority or an Independent Fostering Agency (IFA) in London.
Local Authority (LA)
Typically pays the standard government rate plus a tier-based skill fee.
Per child. Averages in London.
Independent Fostering Agency (IFA)
Often provides a more competitive combined professional fee and allowance.
Per child. Averages in London.
Tax Relief for Foster Carers
Foster carers in London and across the UK are treated as self-employed for tax purposes. You will benefit from a scheme called Qualifying Care Relief. This means you can earn a significant amount from fostering before you pay any tax. In many cases, foster carers pay zero income tax on their fostering income.
Are you an existing carer in London?
If you are currently fostering and feel your allowance doesn't reflect your experience or the needs of the children you care for, you have the right to transfer agencies. Many experienced carers in London successfully transfer to IFAs that offer better financial packages and stronger support networks.
Free Transfer Support
We can help you find an agency in London that offers competitive allowances and outstanding support. The process is free and confidential.
Request Transfer Support →