About fostering allowances
The amount you receive as a foster carer can be described using different terms, most commonly fostering allowance and foster carer payment. It’s important to understand what each term means and how allowances are provided to support the needs of the child or young person in your care.
Your Foster Carer Payment: The Two Main Elements
Your overall foster carer payment is made up of two key components:
1. Children’s Allowance
- This allowance covers the day to day costs of caring for the child or young person. It is sometimes referred to as the fostering allowance. This payment is intended to meet the child’s needs, including food, clothing, transport, leisure activities, and other essential expenses.This allowance covers the day to day costs of caring for the child or young person. It is sometimes referred to as the fostering allowance. This payment is intended to meet the child’s needs, including food, clothing, transport, leisure activities, and other essential expenses.
2. Reward Element
- This is the amount you receive in recognition of your hard work, time, and commitment as a foster carer. This payment is yours to keep and is not intended to cover any direct costs for the child or young person.This is the amount you receive in recognition of your hard work, time, and commitment as a foster carer. This payment is yours to keep and is not intended to cover any direct costs for the child or young person.
In some circumstances, extra payments can be made to cover specific one off or additional costs relating to the child or young person. For example, if you pay directly for therapeutic input, such as sessions with an art or drama therapist, these costs can be reimbursed, provided they have been agreed in advance. These expenses are repaid separately from your weekly fostering payments.
Children’s Allowances
(Fostering Allowances)
The allowance provided for a child or young person depends on several factors, including their age, the location of your fostering household, and their individual needs. This allowance is designed to cover the full cost of caring for the child or young person and typically includes, but is not limited to, the following:
- Personal costs (eg. toiletries)
- Clothing
- Food
- Recreation and hobbies
- Pocket money
- Educational support
- Household costs
- Holidays or day trips
- Transport
- Birthday and religious celebrations
Government Minimum Allowance Levels
The minimum fostering allowance levels set by the government must be fully covered within your fostering agency’s carer payment (together with the reward element). These rates increased by 6.55% for the 2025/2026 tax year and are currently as follows, depending on your location:
Age Band: 0–2
- London: £198
- South East: £180
- Rest of England: £170
Age Band: 3–4
- London: £201
- South East: £196
- Rest of England: £176
Age Band: 5–10
- London: £255
- South East: £216
- Rest of England: £194
Age Band: 11–15
- London: £257
- South East: £247
- Rest of England: £220
Age Band: 16–17
- London: £299
- South East: £288
- Rest of England: £258
Example – If your total carer payment in Manchester (Rest of England) is £450 per week for a child aged 7, the applicable minimum allowance would be £194.
This means your reward element would be: £256 (£450 total payment − £194 children’s allowance)
Savings
Savings for each child or young person must be passed to them when they reach independence. In many cases, Local Authorities now manage these savings directly. However, if this is not the case, your fostering agency may deduct the required savings amount from your weekly payment, depending on the child or young person’s age and in line with the agency’s savings policy.
The information above reflects guidance as of April 2025. Government fostering allowance rates and savings requirements may be updated in future years.