Money Matters and Insurance

Contents

1. Introduction
2. Thurrock Allowance Rates
3. Allowances
4. Holiday Allowance
5. Pocket Money
6. Christmas/Festival Allowances
7. Birthday Allowance
8. Travel Expenses
9. Equipment
10. Initial Clothing Allowance
11. Passports and Documents
12. Income Tax
13. Claiming Benefits While Fostering
14. Pensions
15. Receipts
16. 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 (Boarding out 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 the finance administrator in the fostering service as soon as possible.

Payments to foster carers are made in arrears, direct to their bank or building society.

2. Thurrock Allowance Rates

Boarding BOA table to follow.

Thurrock council base their boarding out payments upon the national minimum allowances which are issues every financial year buy the fostering network.

You will also get paid in recognition of your competence, a payment relating specifically to the foster carers tier level within the progression scheme.

Fee payment table to follow.

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

Local information to follow.

6. Christmas/Festival Allowances

This should be included in the first payment in December or the relevant month if another festival is celebrated.

7. Birthday Allowance

This should be made with the payment immediately before the date of the child's birthday. See Thurrock’s Finance Policy - Payments to Thurrock Council Foster Carers - Guidance.

8. 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.

9. Equipment

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.

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 the fostering service.

12. Income Tax

There is a fixed tax exemption of up to £10,000 per year (less if for a shorter period) which is shared equally among any foster carer’s in the same household. After that, you get tax relief for every week (or part week) that a child is in their care. For every week (or part week) that a child aged 11 or older is with them, your tax relief is £250 per child. For every week (or part week) that a child aged under 11 is in their care, the tax relief is £200 per child.

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

Please see: Foster Carers Relief Information (HMRC).

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.

If you are in receipt of or are pursuing the Disability Living Allowance or PIP for any of the children or young people placed with you, you must discuss this firstly with their social worker and your supervising social worker and you must inform them of any amount being claimed.

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.

Insurance policy to follow.