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 in arrears, direct to their bank or building society.

The national minimum fostering allowance are:

2013 to 2014 - minimum allowance rates

<h3">2014 to 2015 - minimum allowance rates

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.

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.

South Gloucestershire’s fostering fees and allowances are shown below:

Foster Carer Allowances/Fees

Rate for age (ARA)

*NOTE: The figures in brackets refer to the allowance for pocket money contained within the fostering allowances.

Age Range 0-17

Retainers

A 28-day retainer will be paid for vacant placements when a carer is available to provide placements for young people aged 11- 18 (Based on Fee not ARA).

Respite

The following rates apply when no retainer is being received:

Holidays

All carers are entitled to 14 nights per annum paid break from fostering per year. This allowance is for carers and is not based on the number of children placed.

The 14 night’s entitlement is based on full year placements and will be calculated on a pro rata basis for shorter placements.

Initial Clothing Allowances

In general the provision of clothing is part of the ARA. Where a child arrives in a placement without adequate clothing an initial clothing grant can be payable. This is subject to agreement of the Team Manager.

NOTE: The amount shown is the maximum payable. The actual amount paid is dependent on the assessed need of the child. It represents a single payment per child on initial entry into the care system.

Share the Care Scheme

Please note Carers are paid a maximum 24 hours for an overnight stay. Day Care sessions cannot be added to any 24 hour periods.

Mileage

Mileage will be paid at 45 pence per mile however; journeys over 60 miles will be paid at the cost of petrol only.

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.

Amounts payable for pocket money is shown in the table above in brackets under ‘Weekly Amount’.

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

This should be made with the payment immediately before the date of the child's birthday.

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.

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

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

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

On top of the £10,000 exemption, you also get tax relief for every week (or part week) that a child is in your care. This means you don’t have to pay tax on some of your earnings over £10,000.

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).

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. 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.

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.