Foster Carer Allowance Example - Stephanie
Stephanie fosters an 11 year old girl and receives £27,168.64 per year, tax free. This is equivalent to an annual salary of £35,519.00
Allowance calculator
Information on foster carer pay and benefits.
The rewards that come exclusively with fostering are priceless, but we understand it’s important that foster carers are recompensated with financial benefits too. So alongside our unrivalled training and support, we offer a competitive fostering allowance.A competitive allowance is rewarded to you as a foster carer for your valued work and for supporting the children in your care.
The fostering allowance covers the costs of looking after a child, including household expenses, food, clothing, pocket money etc. The allowance is also there to reimburse you for your time and care and to reward you for providing a loving, stable and nurturing home for a child.
The fostering allowance is based on factors like the age and needs of the children, the type of fostering, and your experience. As you gain skills, you may choose to provide therapeutic care, which requires extra support and development, leading to an increase in your allowance.
Stephanie fosters an 11 year old girl and receives £27,168.64 per year, tax free. This is equivalent to an annual salary of £35,519.00
Allowance calculator
Here at Nexus Fostering, we value our foster carers and offer a comprehensive suite of benefits as part of our package.
Travel Allowances
Get exclusive discounts on shopping, days out, cinema, and more with our rewards platform.
Recommend A Friend to us and you could receive up to £3000!
A summer and festival allowance.
Carer Loyalty Awards
Blue Light Card membership with access to exclusive discounts online and on the high street!
The Max Card is the UK’s leading discount card for cared for and looked after children.
Free membership to FosterTalk
The Duke of Edinburgh’s Award – for birth children too!
Regular social events for all of our fostering families
John and Sam are Therapeutic Foster Carers. They foster a 7 year old with additional needs and receive £780.29 per week, tax free. This is equivalent to an annual salary of £56,711.88.
Allowance calculator
Key facts at a glance:
Foster parents are classed as self-employed and must complete an annual self-assessment tax return.
You may need to pay some tax, but this depends on your individual circumstances.
The good news:
HMRC provides a special tax relief called Qualifying Care Relief, meaning most foster parents don’t pay tax on their fostering income. You’ll receive a £19,690 annual tax exemption, plus additional relief for each child in your care—making most fostering income completely tax-free.
As a Parent & Child foster carer, Anne receive £52,554 per year. This is equivalent to an annual salary of £72,407.88.
Allowance calculator
Yes! Many mortgage lenders allow you to use all of your fostering income, and there are even some specialist mortgage lenders/products specifically for foster carers.
Having debt would not automatically preclude you from fostering. Everyone’s circumstances are different so this would be discussed during the fostering assessment and approval process. If you would like to foster but are worried your debt may affect your eligibility, don’t let this put you off. You are welcome to contact us for a fully confidential and informal discussion to get more information.
Yes, living in affordable housing will not prohibit you from applying to foster.
Generally, the foster allowance is paid based on the number of individual children or young people you are caring for.
Most foster carers won’t need to pay National Insurance, as earnings from fostering are usually below the threshold. However, you can choose to pay Class 2 National Insurance voluntarily to protect your entitlement to state benefits like the State Pension, Employment and Support Allowance, and Maternity Allowance.
Fostering income also typically doesn’t affect means-tested benefits, as fostering allowances aren’t counted when assessing eligibility for support such as Housing Benefit, Income Support, Child Tax Credit, and more.
Fostering offers the freedom to move away from the usual nine-to-five routine, giving you a flexible, home-based role where you can care for your own children alongside foster children – all while earning a generous allowance.
It’s a rewarding career that not only makes a lasting difference in a child’s life but also offers ongoing training, career development, and strong earning potential.
While many foster parents continue to work, it depends on your personal circumstances and whether you can fully meet the needs of a child in your care. Having another job is possible, but you must be available to provide consistent, high-quality care, with the child’s wellbeing as the top priority.
Using our fostering allowance calculator, you can find out how much you could be paid as a foster carer.
Fostering allowance calculator
For 10 years, Chris and Angela had dreamed about fostering, but it wasn’t until their children were older that they finally took the leap. The inspiration came from Angela's parents, who were fostering twins long-term at the time. Watching the profound impact her parents had on those children ignited a spark in their heart.
Gina, 54, had previously had a career in social services, spanning over 20 years, working with adults with learning disabilities. With Gina’s experience, they knew they were equipped for therapeutic fostering. Over the 3 years, Gina and Michael have supported 3 teenage girls, now aged 13,16 and 18 years old.
The couple received a card from their child and explains "they thanked us for all the new experiences, said we have changed their life for the better and that they are looking forward to new adventures in the future. That speaks volumes".
Children and young people come from different backgrounds, which is why we require foster carers who represent the diversity of today's society. Regardless of your sexuality, marital and relationship status, and whether you have children. You can foster.
Nexus Fostering is a fostering agency like no other. We believe all children and young people deserve a chance to live in a family setting, and we are proud that our foster carers and young people will always be our top priority.
Foster care is needed to give vulnerable children and young people a safe, caring home environment while they cannot live with their birth family. Becoming a foster carer is essential to enable these children to grow and flourish into independent, well-rounded adults.
