As a foster carer, you dedicate your time and energy to supporting young people in need, helping them to thrive and reach their full potential. However, we recognise that it is not always easy to make ends meet, and finances can be a significant source of stress and anxiety. That’s why we are delighted to announce that the government has made changes to the Qualifying Care Relief system, approving a major increase in tax-free income for foster carers. This was done in response to fierce campaigning by the Nationwide Association of Fostering Providers (NAFP).
What Is Qualifying Care Relief?
Qualifying Care Relief (QCR) is a tax simplification provided by the UK government that offers targeted relief for care income. In a nutshell, it reduces the administrative burden on foster carers and allows them to focus on providing quality care. More importantly, however, QCR enables foster carers to take advantage of a tax-free threshold.
Qualifying Care Relief 2023
According to a policy paper by the UK government, the new QCR rules for 2023 to 2024 are as follows:
- A fixed amount of £18,140 (up from £10,000)
- Weekly amounts for each child in your care:
* £375 for each child under 11 years of age (up from £200)
* £450 for each child 11 years of age or older (up from £250)
In real terms, the tax-free element of QCR has nearly doubled, which means the vast majority of carers will not have to pay tax on their care income.
Furthermore, these rates will also increase each tax year in line with inflation.
What the New QCR Rules Mean for Foster Carers
Without a doubt, this is great news for foster carers across the UK, as the financial support they are currently receiving will keep up with the rising cost of living. At Compass Fostering, we are committed to providing the best possible support to our foster carers. In addition to the Qualifying Care Relief increase, we are also increasing our fostering allowance to reflect the growing pressures that our carers face. This year’s allowance rise took effect on the 1st of May and was the highest we have ever provided. To find out more about the help available to you, see our latest recession tips.
How Compass Fostering Is Involved
Our CEO, Bernie Gibson, is on the executive board of the NAFP and has played a significant part in advocating for this tax relief. We would like to thank all of our foster carers for everything they do for Compass Fostering and for the commitment, love and support they show to our children. We are proud to have such dedicated and passionate people as part of our team, and will continue to do everything we can to support them in their vital work.