Deciding to foster is, first and foremost, about making a difference in a child’s life. It’s about providing stability, care, and a safe place to call home.
But it would be unrealistic to pretend that money doesn’t matter.
In the current financial climate, everyone needs to be able to cover their bills, plan ahead and feel secure in their day-to-day lives. Asking whether you can afford to foster isn’t the wrong question, it’s a responsible one.
This guide takes a clear, practical look at fostering finances at Foster Birmingham, including allowances, fees, tax and benefits, so you can understand what to expect and make an informed decision.
Understanding Fostering Finances
At Foster Birmingham, fostering payments are made up of two parts.
Foster Carer Fee
This is the payment you receive in recognition of the time, commitment and skills involved in being a foster carer.
Most carers begin at Level 3, with the opportunity to progress to Level 4 as they gain experience, training and expertise.
Current Foster Carer Fees are:
- Level 3: £217.28 per child, per week
- Level 4: £294.58 per child, per week
Child Maintenance Allowance
This allowance is designed to cover the day-to-day costs of caring for a child and helps contribute towards expenses such as:
- Food
- Clothing
- Household costs
- School-related expenses
- Activities and hobbies
The Child Maintenance Allowance ranges from £184.75 to £292.45 per child, per week, depending on the child’s age.
Together, these payments are designed to ensure foster carers are financially supported while providing a safe and nurturing environment for children and young people.
How Much Could You Receive?
One of the questions we are asked most often is: “How much would I actually get?”
The answer depends on factors such as:
- Your experience as a foster carer
- The age of the child
- The number of children you care for
- The type of fostering you undertake
The examples below show how fostering payments can work in practice.
Example 1: Caring for One Child Aged 4
A Level 3 foster carer looking after one child aged 4 would receive:
| Payment | Amount |
| Foster Carer Fee | £217.28 |
| Child Maintenance Allowance | £184.75 |
| Total Weekly Payment | £402.03 |
Example 2: Caring for Two Children Aged 2 and 8
A Level 4 foster carer looking after two children aged 2 and 8 would receive:
| Payment | Amount |
| Foster Carer Fee | (£294.58 x 2) = £589.16 |
| Child Maintenance Allowance | (age 2) = £184.75 |
| Child Maintenance Allowance | (age 8) = £203.66 |
| Total Weekly Payment | £977.57 |
These examples demonstrate how payments increase based on your fostering experience and the number of children you care for.
Our Finance Calculator can help you explore potential fostering payments based on your experience level and the number and ages of the children you may care for.
What Other Financial Support Is Available?
As well as weekly fostering payments, Foster Birmingham provides additional financial support to help with key expenses that arise throughout the year.
This includes:
- Birthday gift allowances
- School uniform / clothing allowances
- Equipment and set-up grants
- Paid annual leave
- Access to discounts through Vivup
- Membership to fostering organisations and support networks
These additional benefits are designed to help ensure foster carers feel supported, both financially and professionally.
Fostering Finances: Tax and Benefits Explained
Money matters don’t stop at weekly payments. Many prospective carers also want to understand how fostering affects tax and benefits.
Do Foster Carers Need to Register as Self-Employed?
Yes, foster carers need to register as self-employed with HMRC and complete a Self Assessment tax return each year.
How Does Tax Work for Foster Carers?
Through a scheme called Qualifying Care Relief, foster carers can claim:
- A tax exemption of up to £20,440 per household
- Tax relief for every week you foster a child
You may also be entitled to National Insurance credits, which count towards your State Pension.
For the latest information about tax arrangements for foster carers, visit the GOV.UK website.
What About Benefits?
If you’re claiming benefits you need to tell the organisation that pays you that you’re also getting a foster care allowance.
Please refer to the Gov.UK website for further guidance on claiming benefits.
Frequently Asked Questions About Fostering Finances
Can I afford to foster?
Every household’s financial situation is different, which is why it’s important to look carefully at the payments and support available before making a decision.
Fostering is not about making money, but nor should it leave you out of pocket. Foster Birmingham provides a Foster Carer Fee alongside a Child Maintenance Allowance to help cover the cost of caring for a child and recognise the important role foster carers play.
The best way to understand what fostering could look like financially for your household is to use our Finance Calculator or speak to our team.
Can I continue working while fostering?
Many foster carers combine fostering with flexible or part-time employment. Whether this is suitable will depend on the needs of the child and the type of fostering you undertake.
Your work commitments and availability will be discussed with your assessing social worker during the assessment process, helping you understand what could work for you and your household.
How do I find out exactly what I could receive?
Our Finance Calculator is a great starting point and will give you an estimate based on factors such as your experience level and the number and age of the children you may care for.
After viewing your results, you’ll have the opportunity to download our Finance Booklet for a more detailed breakdown of payments, allowances and support available to Foster Birmingham carers.
Still Have Questions?
Every fostering journey is different, and no two households are the same.
If there’s something we haven’t covered in this guide, or you’d like to talk through your own circumstances, our team would be happy to help.
Call Foster Birmingham on 0121 303 7575 to speak to a member of the team.
Please note: The information, payments, allowances and tax figures included in this guide were correct at the time of publication. Financial support, tax reliefs and government guidance may change. For the most up-to-date information, please visit GOV.UK or speak to a member of the Foster Birmingham team.
