Money Matters and Insurance

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 the finance section in the fostering service as soon as possible.

Payments to you are made one week in arrears and one week in advance, direct to your bank or building society.

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.

Refer to the Telford & Wrekin Foster Carers Guide to Payments in the Local Resources section.

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. This is related to age bands and details can be found in the Telford & Wrekin Foster Carers Guide to Payments in the Local Resources section.

Each child living with foster carers are entitled to one holiday payment a year. The payment relates to the financial year April to March and the amount to be paid varies according to the age of the child and is equivalent to two weeks allowance.

The holiday payment is paid to allow carers to take a child on holiday or to be used for holiday activities. It is not intended to cover the full cost of taking a child on holiday, but rather to provide additional money at an expensive time of year.

Holiday payments are usually paid during the first two weeks of June, but may be requested earlier if required for a specific reason.

Please refer to details found in the Telford & Wrekin Foster Carers Guide to Payments in the Local Resources section.

Telford & Wrekin require each child/ young person to be given an amount of pocket money, usually weekly. The weekly amount should be at least at a level in the table below but may be increased at the foster carer’s discretion for example in reward of tasks being completed (tidy bedroom, etc.)

The interpretation of pocket money is money that is given weekly to the child / young person that they can spend on items of their own choice.

Pocket money for children and young people is not optional and must not be withheld as a form of behaviour management.

Children up to the age of three years old should have their pocket money saved by the carer in a bank account in the child’s name or items purchased on their behalf.

Foster carers will provide guidance to children and young people about managing their spend and the impact of different purchases they may wish to make. Some children/ young people may agree to save some for specific larger items (holiday spending, computer games etc.). Older children and young people in placement should be supported in opening a savings account, where they can put their money if this is their choice.

Certain banks will allow a child over the age of 7 to hold an account in their own name and others will allow from the age of 11. Also consider internet banking schemes (it is worth researching the various options).

Children should be encouraged and supported to open and maintain bank accounts and, if possible, their pocket money and other allowances should be paid into these accounts.

Where accidental damage to personal items (i.e. mobile telephones, laptops, tablets, games consoles etc.) has occurred on a regular basis there should be a discussion with the child’s Social Worker, the child/young person regarding whether or not the child/young person should make any financial contribution towards to the cost of repair/ replacement or damage caused from their pocket money. This will be recorded in an agreement with a timescale for repayment. The supervising Fostering Social Worker / child’s social Worker must record in the Foster Carer’s supervision record the date of discussion and refer to the agreement, this may also be copied into the child’s record

In addition to the fees and allowances, there will be:

• 1 week payment equivalent of child allowance to provide Festival presents for a child. The Festival payment is paid on the pay date nearest 1st December. Carers can request a flexible early payment for other festivals such as Eid.

In addition to the fees and allowances, there will be:

• 1 week payment equivalent of child allowance to support a child’s birthday presents/party. The birthday payment is paid on the pay date before the child’s birthday (at least two weeks in advance).

The basic fostering allowance includes an element for travelling costs which are part of the normal pattern of expenditure incurred in looking after children.

Only travel costs which arise from the need to meet journeys related to the children being in care such as contact, exceptional medical appointments, therapy and children in care activities will be eligible for mileage claims. Where a journey outside the child’s normal weekly activity is required discussions should take place with the supervising social worker to consider and obtain approval before committing to the journey.

Please refer to details found in the Telford & Wrekin Foster Carers Guide to Payments in the Local Resources section.

If foster carers require additional equipment to fulfil their role (i.e. asked to have an additional placement), they can make a request for consideration by the Fostering Team Manager.

This may include items such as car seats or baby alarms.

When a child first becomes looked after and does not have adequate clothing, carers will be reimbursed up to the maximum of the recommended amounts shown below.

This allowance is a one off payment which can be requested by the carer via their supervising social worker and authorised by a Fostering Team Manager.

Please refer to details found in the Telford & Wrekin Foster Carers Guide to Payments in the Local Resources Section.

The cost of getting birth certificates (and copies), passports and Life Story books will be met by the fostering service. In respect of passports, please speak to the child’s social worker at the earliest opportunity as only parents and/or the Local Authority (if there is an order in place) can apply on the child’s behalf. The cost of photographs will be reimbursed to the foster carer.

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

For details of costs for life story work/equipment, please refer to the Telford & Wrekin Foster Carers Guide to Payments in the Local Resources section.

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:

See relevant information on the GOV.UK website.

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

You should keep a record of how the allowance is being spent on a child/young person. You should keep receipts where possible. This helps build a record of what has been spent, which you can show if asked about it at a later date.

Any additional costs should have receipts provided i.e. life story equipment, any additional funding costs agreed, school uniform, car parking receipts.

Refer to the Telford & Wrekin Foster Carers Guide to Payments in the Local Resources section.

You must inform your Home, Building and Contents and Car insurance company once you have been approved as a foster carer. Car insurance should be fully comprehensive in order to offer protection to children in foster care. Whilst there is no requirement for Business Use, as fostered children should be classed as any other household member, it is advisable to check with your individual insurance company.