Finance

Fostering Allowances Explained

FindAFosteringAgency.co.uk·7 min read

Foster carers receive a fostering allowance — not a salary — to cover the costs of looking after a child. The amounts vary enormously between agencies and placement types, and understanding the structure helps you make an informed choice.

Allowance vs. fee

Most fostering payments are split into two parts:

  • The allowance — covers the child's day-to-day costs: food, clothing, transport, activities
  • The skill payment / fee — recognises your work as a carer. This is the professional element

Some agencies blend these into a single weekly figure. When comparing offers, always ask for the breakdown — a headline rate of £450/week might include £200 for child costs you'll actually spend.

National minimum fostering allowances (2025)

The government sets minimum allowances that all agencies must pay. These increase each April:

  • Under 5s: £211/week
  • 5–10 years: £222/week
  • 11–15 years: £258/week
  • 16+ years: £297/week

These are minimums. IFAs commonly pay significantly more, particularly for specialist placements.

How to get a better rate

  • Compare multiple agencies — the difference in weekly rate for the same placement type can be £100+
  • Ask specifically about enhancement payments for complex placements, teenagers, or UASC
  • Experienced carers with a track record should expect premium rates — your experience has value
  • Consider transferring if your current rate is below what comparable agencies offer in your area

Think you could earn more elsewhere?

We'll compare allowances at agencies in your region — free, no obligation.

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