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 a fee commensurate with your experience, Kasper have three tiers to their fostering allowances. The Fee payable is made up of two elements ‘fees’ and ‘allowances’. Kasper provide all carers with details of the fees and allowances paid – please request this information directly from Kasper if you have not been provide with a copy.

If you have any queries about allowances or if you think you have been under or over paid, contact the finance team at Kasper as soon as possible.

Payments to you are made one week in arrears and one week in advance, 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. You may also get paid in recognition of your skills, commitment or time. Fostering agencies may make one payment to cover both of these.

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.

4. Holiday Allowance

This can be applied for once a year. You should let your Supervising Social Worker know when you plan to take a child/young person on holiday and they will arrange payment. The amount payable depends on the age of the young person.

5. Pocket Money and Savings

All carers are required to pay pocket money to young people and make appropriate savings.

Within the ‘Allowance’ Element paid to carers is specific provision for the following:

6. Christmas/Festival Allowances

Within the ‘Allowance’ Element paid to carers is specific provision for the following to be spent on providing gifts for young people:

7. Birthday Allowance

Within the ‘Allowance’ Element paid to carers is specific provision for the following to be spent on providing gifts for young people:

8. Travel Expenses

Expenses are paid by Kasper where a carer is travelling in excess of 280 miles per week. Please see Kasper’s fee information for further details.

9. Equipment

Discuss with your Supervising Social Worker, any requests for specialist equipment.

10. Initial Clothing Allowance

When a child first arrives there may be a need for extra money to buy clothes. Please discuss this with your Supervising Social Worker. 

11. Passports and Documents

The cost of getting birth certificates (and copies), passports and Life Story books will be met by Kasper or the local authority.

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

12. 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.

13. Claiming Benefits While Fostering

See relevant information on the GOV.UK website.

14. Pensions

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

15. 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.

16. 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. A copy of these letters should be given to your Supervising Social Worker.