Payments for fostering

If you're thinking about fostering, one of the first questions you'll probably ask is: Can I afford it? And that's completely understandable. Fostering is one of the most important decisions a person can make. It changes lives, including your own, so it's natural to want to understand how it would fit alongside your family life, your work commitments and your finances. 

Yet it's often the question people feel least comfortable asking. Some people worry that talking about money takes something away from that. They worry that asking about payments might make them seem interested for the wrong reasons. You can read more about our fostering and finances in a blog post by our head of fostering - Tammy.

Competitive payments and allowances

A safe, loving home is the greatest gift you can give a child and you won't be out of pocket by becoming a foster carer. The weekly amount you receive as a foster carers depends upon 4 main factors:

1. The number of children you care for
2. The age of the children in your care
3. The type of fostering you provide
4. The needs of the individual children in your care.

Our foster carers can earn around £30,000 per year - often tax-free thanks to qualifying care relief.

Try our new fostering payments calculator to see what financial support you would receive

How does fostering pay work?

As an approved foster carer with a child or young person living with them, you will receive a payment direct into your bank account every two weeks. You do not receive money when you do not have children living with you. This is why we do not recommend relying on fostering payments as your only source of income.

The payment will consist of age-related expenses (to cover the cost of caring for a child and includes items such as food and clothing), and a professional fee (which recognises your skills and commitment as a foster carer).

Fostering, tax and national insurance

When you become a foster carer you need to register with HMRC as self-employed and complete an annual self-assessment tax return. The government applies a generous tax-free allowance (up to almost £20,000 per year per household) to fostering income under a scheme called ‘Qualifying Care Relief", but every person’s situation is unique.  You will also receive national insurance credits to build a state pension. You can find out more here Visit the HMRC website

You will receive lots of support in this area, advice from current foster carers, and invitations to attend webinars on the subject. You don’t have to work out things alone – we will help!

Fostering and working

You can foster and work at the same time. Many foster carers successfully balance employment with caring, especially with flexible or part-time jobs. The key is finding a routine that works for your household and meets the needs of the child. Some fostering types, like short breaks, may suit working professionals better.

We will help assess your availability and support you in making it work. What matters most is your commitment, stability, and ability to provide a nurturing environment. With the right support, fostering while working is not only possible — it’s incredibly rewarding.

Local Authority versus private fostering agencies

It is a common myth that private fostering agencies always pay their foster carers more than local authorities. We have worked hard to ensure the amount our foster carers receive is competitive, fair and transparent.

Often, when foster carers transfer to GCC, they are surprised at the number of ways in which they are financially supported when fostering for the local council, that they were not when working for a private agency. For more details about our why fostering for your local authority benefits children in care visit our 'Why Foster with GCC' pages and read Children first – not profit