Foster Carer Payments & Rewards

Receive a generous allowance with Compass Fostering

Foster Carer Payments

Money does matter and it shouldn’t be an embarrassing part of the process. We aim to be as open about foster carer payments as possible. With Compass you’ll receive a generous fostering allowance for every night that a child or young person lives in your home. This is not a salary but it enables you to fully meet the needs and expenses of the fostered person.

  • Payments are hassle-free: they’re paid electronically, directly into your bank account.
  • We like to ensure that carers can help children celebrate their birthdays, Christmas (or other religious festivals) as well as to enjoy family holidays; these additional allowances are paid either in your weekly fee or by an additional payment.
  • Fostering can be a challenging role so we continually look at different ways of supporting foster carers, including ensuring they are able to take a break.
  • On top of fees paid for looking after a child, you’ll also have opportunities to earn more through becoming a Carer Recruitment Ambassador.
  • Should you have the room, you are more likely to have the opportunity to look after multiple children simultaneously with Compass than you are with the local authority.
  • If you foster, you’ll be eligible for National Insurance credits, which counts towards your State Pension.
Foster Carer Payments

Payments vary for each placement depending on the needs of the child, age and whether they’re part of a sibling group. Please be aware that the expectation is that a portion of all payments should be used to pay for the needs of the child or young person. For more information, please call us on 0800 566 8317.

Tax relief
Tax relief is also available for foster carers, the qualifying amount is based on the initial £10,000. Following that the rate is £200 per week, per placement aged under 11, and £250 per week, per placement for children over 11.
Find out more about how this would work for you at: HMRC

The below foster carer payments examples will give you an idea of how the tax allowances work. All examples are for illustrative purposes only and are based on a 52 week placement. The actual amount you will receive may vary from the example (either higher or lower) and can vary between regions.

Tax relief examples

EXAMPLE ONE

A foster carer has a 14 year old boy in placement – the foster carers will receive £365 per week for the length of the placement.

TOTAL ALLOWANCE AFTER TAX

£18,980

Over 52 weeks of the year = £18,980. Tax relief: £10,000 + £250 x 52 x 1 = £23,000. Therefore none of this is taxable.

EXAMPLE TWO

A carer has a sibling group of three who are 2, 5 and 12 years old – their foster carers receive £977.82 per week for the length of the placement.

TOTAL ALLOWANCE AFTER TAX

£42,197

Over 52 weeks of the year = £50,546.64. Tax relief: £10,000 + £250 x 52 x 1 + £200 x 52 x 2 = £43,800. Therefore £6,746.64 is taxable.

EXAMPLE THREE

A carer has a 14 year old boy exhibiting problematic sexual behaviour. The carers received £760 per week for the length of the placement.

TOTAL ALLOWANCE AFTER TAX

£36,216

Over 52 weeks of the year = £39,520. Tax relief: £10,000 + £250 x 52 = £23,000. Therefore only £16,520 is taxable.

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