Money Matters and Insurance

1. Introduction

Once you have completed the preparation training and the fostering induction standards and have a child placed with you, you will receive at least the minimum fostering allowances listed in the tables below. Allowances are usually made up of two components. The basic age related child allowance and the competence payment relating specifically to the foster carers tier level within the progression scheme.

If you have any queries about allowances or if you think you have been under or over paid, contact  your Supervising Social Worker or Family Placement Team Duty as soon as possible.

Payments to you are made in arrears fortnightly, direct to their bank or building society.

2. The National Minimum Allowance Rates

Click here for the national minimum fostering allowances.

The national minimum allowances are only the base minimum rates. The actual allowance that you will receive will depend on a number of factors, in particular the specific needs of the child.

3. Allowances

While a child is Looked After, they are entitled to a number of other allowances.

The level of these payments is reviewed once a year.

Payment for skills recognises the skills that our carers have.

4. Savings

Foster carers must save a weekly amount for all children looked after from the date the child is placed. Bracknell Forest have savings accounts set up for children that are looked after and when a child comes to live with you, the details of this will be shared.

It is expected that all Foster Carers will save £5 per week per child, starting on the day that they come to live with them.

This is to ensure that when they leave care, at whatever age, they have savings to take with them, and are not disadvantaged in relation to their peers who have family to support them.

5. Pocket Money

A payment of pocket money must be made to each child and allowance for this has been made in the allowance paid to foster carers for each child. The amount will be at the discretion of the Foster Carer after discussion with the supervising social worker and the child's social worker. Foster Carers should take into account factors such as:

• Amounts paid to friends and peers;
• The general family patterns;
• The child's own capacity to accept responsibility.

6. Travel Expenses

Expenses are paid by the fostering service for making trips to hospital; attend reviews, contact arrangements or other exceptional travel expenses. This will be at a set rate per mile. This would usually be for trips over and above the day to day milage allowance of 12 miles per day, per child. Where unusually high travel is expected this needs to be discussed with your Supervising Social Worker and agreed by the Family Placement Team Manager.

7. Equipment

Most foster carers will already have the basic equipment needed to care for the age range of children they are approved for, such as bed, cot, push chair, stair gate etc. However, if you do not have suitable equipment for a specific placement, e.g. a sibling group or a child with special needs, please discuss this with your supervising social worker or contact the duty worker. We can arrange a loan of equipment from another foster carer or purchase new equipment if needed. If you take equipment on loan, or it is purchased, you are expected to return it at such time as you no longer need it or cease fostering. The items remain the property of the Department, to be used by other foster carers. Please note the agreement of the team manager is needed before any equipment is purchased.

Your Supervising Social Worker or other members of the team will be able to help you find information and guidance to help you prepare for or actually look after children from different racial, cultural and religious origins from your own, and children with special needs.

8. Initial Clothing Allowance

If children are placed with you on a short term basis, it is hoped that children will bring their own clothing with them, wherever possible. If it has not been possible to obtain their clothing and toys when they left home, ask the child’s Social Worker to pursue this for you.

If children arrive with little or no spare clothing, you will need to discuss an initial clothing grant with your supervising social worker at the time of placement, particularly for placements that are intended to be for longer than a few days or weeks. You will also need to discuss a clothing grant when a child starts a new school, as badged items will be covered. For primary school children this is a maximum limit of £100 and for secondary school children £150 maximum limit.

Receipts are required for any clothing grants agreed with Supervising Social Worker, and it is advisable to retain receipts for any clothing purchased over the previous 1-12 months in the event of any queries, e.g. while children are subject to care proceedings.

Any clothing bought for a child should be considered as theirs and they should keep it if they leave your home.

9. Passports and Documents

The cost of getting birth certificates (and copies), passports and Life Story books will be met by the fostering service.

If you require a passport for a child in your care you should always consult the child's Social Worker.

Permission for the child to travel abroad may need to be obtained from the child's birth parents, Children's Social Care or the Court. Make sure that you raise the issue in plenty of time.

Depending on the individual circumstances of the children or young people in your care their passport may be kept either by their parents, Social Worker or by you.

Information is also available from the GOV.UK website about passports.

10. Income Tax

When you are fostering, you will need to be registered as self-employed and file tax returns. See File Your Self Assessment Tax Return Online.

You will be entitled to qualifying care relief which means that you will be entitled to:

Tax exemption

In a tax year, households do not pay tax on a fixed amount of the money they earn from fostering. You will still pay tax on money you earn from a job or investment.

Tax relief

On top of this exemption, you also get tax relief for every week (or part week) that a child is in your care.

All payments made to you will be itemised. You should keep this information as a record for income tax purposes.

For further information and current figures, please see: Foster Carers Relief Information (HMRC) and Help and Support for Foster Parents in England.

11. Claiming Benefits While Fostering

See relevant information on the GOV.UK website.

12. Pensions

If you foster you may be eligible for National Insurance Credits which count towards your State Pension.

13. Receipts

You should keep a record of how the allowance is being spent on a child/young person. You should keep receipts where possible. The child/young person should sign for money they are given e.g. pocket money and clothing allowance. This helps build a record of what has been spent, which you can show if asked about it at a later date.

If you receive DLA for any child you look after you should ensure that you keep a record of how this is accounted for.

14. Insurance

You must inform your Home, Building and Contents and Car insurance company once you have been approved as a foster carer.

Tell them about the numbers of children and age ranges you expect to take. You should ask the insurance companies for written confirmation that they have included foster children on your policies. You need to make sure that the insurance cover you have in place meets your needs. You need to check the details of your insurance cover about damage, loss or theft of property.

Example of a letter to your Insurance Company:

Dear Sirs,

Re Policy Number:

I am/we are foster carer(s) for Bracknell Forest Borough Council Children's Social Care Department. As well as our own family we will have children living

in our home whose ages will range from to

We would be grateful for acknowledgement of this letter and confirmation that for the purpose of insurance, any children we are looking after in our home within the provisions of the Fostering Services Regulations 2002 are regarded as members of our family. Also, please confirm that the public and personal liability clause of our policy includes foster children.

Yours faithfully