Foster Carer Payments & Rewards

Receive a generous allowance with Compass Fostering

Foster Carer Payments

As a foster carer you will have a huge effect on children’s lives, helping them to improve their self-esteem, make better choices and helping them to go on to have a safer and happier future. We recognise that looking after a child or young person has financial implications which is why as a foster carer you are paid a weekly payment which is made up of a professional fee for yourself and also a day to day living allowance for the child.

  • Payments are hassle-free: they’re paid electronically, directly into your bank account.
  • 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

Compass average a weekly payment of £370 for every child living in your home, this includes both the professional fee paid to you as a foster carer and the child’s living allowance. On average our carers support between one and two children every week and therefore the actual average carer weekly fee is in excess of £460.

The day to day living allowance of a child looked after in your home will vary depending on the age and need of the child but it will generally cover the cost of food, clothes, toiletries and all other expenses incurred including pocket money and savings. Government guidelines suggest £150 per week to cover the day to day costs as a minimum. For more information, please call us on 0800 566 8317.

Paying Tax

The good news is Foster Carers have an additional tax exemption.

There’s a fixed tax exemption of up to £10,000 per year which is shared equally among any foster carers in the same household, which means you don’t have to pay tax on the first £10,000 income you make from fostering. On top of the £10,000 you will also get tax relief for every week (or part week) that a child is in your care; which means you don’t have to pay tax on some of your earnings over £10,000. For a child under 11 years this is £200 per week and for a child over it’s £250 per week. Find out more about how this on the FosterTalk website or with HRMC.

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 £370 per week for the length of the placement.

POST-TAX EARNINGS OF

£18,980

Over 52 weeks of the year = £19,400. Equivalent Annual Salary* roughly £23,500.

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.

POST-TAX EARNINGS OF

£43,437

Over 52 weeks of the year = £50,846.64. Equivalent Annual Salary* roughly £71,000.

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.

POST-TAX EARNINGS OF

£36,216

Over 52 weeks of the year = £39,520. Equivalent Annual Salary* roughly £49,000.

*illustrative example based upon standard tax payer.

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