Written and fact-checked by Oroni Chowdhury · Published: November 2026 · Last reviewed: November 2026 · Applies to the 2026/27 tax year
Anyone thinking about fostering soon asks the practical question: how will the household manage financially? Payments vary between councils and agencies, the terms “allowance” and “fee” are often used loosely, and the tax position can sound more complicated than it is.
This guide sets out foster parents payments for 2026/27 in plain terms. It covers the official minimum allowances across the UK, how fees work, the extra payments you may receive, three worked examples, and how the income is treated for tax, National Insurance and benefits.
- The allowance is for the child’s needs; a fee, where paid, rewards the carer’s skills and time.
- England’s 2026/27 national minimum allowance runs from £176 to £309 per child per week.
- Scotland, Wales and Northern Ireland each set their own rates.
- Qualifying care relief means most carers pay no tax on fostering income up to a generous limit.
- Foster carers are treated as self-employed and must still register and file a Self Assessment return.
- For Universal Credit and most means-tested benefits, fostering payments are generally ignored as income.
What Are Foster Parents Payments?
Foster parents payments come from the fostering service that approves you: either a local authority or an independent fostering agency. They are not a salary in the usual sense. Foster parents payments are usually made up of two parts, and knowing the difference helps you budget and compare services.
The allowance: covering the child’s costs
The allowance pays for the everyday costs of looking after a child: food, clothing, toiletries, travel, pocket money, activities and a share of household bills. Every approved foster carer receives at least the minimum allowance for each child placed with them.
The fee: rewarding the carer
Many services also pay a fee, sometimes called a reward or professional payment, in recognition of the carer’s time, skills and training. Fees are not set nationally, and not every service pays one, so they account for most of the difference between offers.
How Much Are Foster Parents Payments in 2026/27?
The UK government sets a national minimum allowance for England, published on GOV.UK’s page on help with the cost of fostering. For 2026/27, the weekly minimums per child are:
| Child’s age | London | South East | Rest of England |
|---|---|---|---|
| 0 to 2 | £205 | £195 | £176 |
| 3 to 4 | £208 | £203 | £182 |
| 5 to 10 | £233 | £223 | £201 |
| 11 to 15 | £266 | £255 | £227 |
| 16 to 17 | £309 | £298 | £267 |
Scotland, Wales and Northern Ireland
- Scotland: the Scottish Recommended Allowance for 2026/27 is £177.68 a week for ages 0 to 4, £206.71 for ages 5 to 15 and £283.35 for ages 16 and 17, after a 3.8% rise.
- Wales: according to The Fostering Network, the 2026/27 minimum is £229 a week for children aged 0 to 4, £208 for ages 5 to 15 and £260 for ages 16 and 17, following a 2.2% uplift.
- Northern Ireland: the same source reports minimums of £160 (ages 0 to 4), £179 (5 to 10), £200 (11 to 15) and £235 (16 to 17) a week, after a 3% increase backdated to April 2026.
These are minimums. Many services pay more, especially once a fee is added, so actual foster parents payments are often well above these figures.
What Affects How Much You Receive
- The child’s age: allowances rise as children grow older, because teenagers cost more to look after.
- The child’s needs: children with disabilities, complex health needs or challenging behaviour often attract enhanced payments.
- Type of fostering: emergency, short-term, long-term, respite, parent-and-child and specialist placements can each be paid differently.
- Your skills and experience: many services pay higher fee levels once you complete training or gain experience.
- Number of children: the allowance is paid for each child, so siblings placed together increase the total.
- Where you live: in England, London and the South East have higher minimums.
Council or Independent Agency: How Payments Compare
You can foster for your local authority or for an independent fostering agency. Agencies often advertise higher weekly totals, while councils may offer other advantages. Compare the whole package rather than the headline figure, because foster parents payments from two services with the same weekly total can be worth quite different amounts once retainers, extras and support are counted.
| Point to compare | What to ask |
|---|---|
| Weekly allowance | Is it above the national minimum for each age? |
| Fee or reward | Is a fee paid, at what level, and how do you progress? |
| Retainers | Are you paid between placements? |
| Extras | Which birthday, holiday, festival and mileage payments are included? |
| Support | Out-of-hours support, social worker contact and support groups |
| Training and breaks | Paid training, respite and planned breaks |
Council schemes are usually published online. For example, Milton Keynes Council publishes its full foster carer payment scheme for 2026/27, showing how its allowances and fee levels fit together.
How and When Foster Parents Payments Are Made
- Frequency: most services pay weekly or fortnightly, usually straight into your bank account.
- Part weeks: many pay for each night a child is with you, so a placement starting midweek is paid pro rata.
- Holidays and respite: check whether payments continue while a child is on holiday with you, staying with family or in respite care.
- When a placement ends: payments normally stop, unless your service pays a retainer.
Foster parents payments are not wages, so there is no payslip and no tax deducted at source. That is why the tax return matters, even when the relief covers everything.
Extra Payments and Expenses
Alongside the weekly payments, most services make additional payments, although amounts and rules differ. GOV.UK notes that carers may be able to apply for extra money for school trips, holidays, birthdays and religious festivals. Common extras include:
- birthday and festival payments
- holiday allowances
- school trips, uniforms and equipment
- mileage for contact visits, school runs or appointments
- setting-up payments for a new placement, such as a bed or car seat
- retainer payments between placements, with some services
Foster Parents Payments: Three Worked Examples
The examples below show how foster parents payments add up in practice. They are illustrative. They use the 2026/27 minimum allowances and invented fee levels, and convert weekly figures to monthly ones using 52 weeks ÷ 12.
| Example | Weekly | Monthly | Yearly |
|---|---|---|---|
| One child aged 8, Rest of England, allowance only (£201) | £201 | £871 | £10,452 |
| Siblings aged 5 and 12, South East: allowances £223 + £255, plus a £150 fee | £628 | £2,721 | £32,656 |
| Teenager aged 15, London: allowance £266, plus a £250 enhanced fee | £516 | £2,236 | £26,832 |
Fee levels vary widely between services, so treat the fee figures as examples only. The second and third examples show how much a fee can add to the minimum allowance.
Do Foster Parents Pay Tax on Their Payments?
Foster parents payments are self-employed income for tax purposes, but a special scheme called qualifying care relief means most carers pay little or no tax on them.
Qualifying care relief for 2026/27
GOV.UK’s guidance on tax arrangements for foster carers says each household can receive up to £20,440 a year from fostering without paying tax. On top of that, you get relief for each week or part week a child is in your care:
- £435 a week for each child under 11
- £515 a week for each child aged 11 or over
In GOV.UK’s own example, a carer looking after a 14-year-old all year and an 8-year-old for 10 weeks would pay no tax on the first £51,570 of fostering income. The fixed £20,440 is shared if more than one person in the household receives fostering payments.
You still need a tax return
Even if no tax is due, foster carers should register as self-employed when they start and file a Self Assessment return each year. Our self-employed tax return guide covers registration, and you can check the dates in our guide to Self Assessment deadlines.
Simplified or normal method
- Simplified method: if your fostering receipts are above the qualifying amount, you pay tax only on the excess, and you can’t also deduct expenses.
- Normal method: you work out profit as receipts minus actual expenses. You can choose this if it gives a lower taxable figure.
HMRC’s helpsheet HS236 explains both methods. For a fuller explanation of the relief, see this foster carers tax allowance guide.
Keep simple records
Keep a list of every payment received and the dates each child was in your care. If you might use the normal method, keep receipts for spending on the children too. Records help you choose the method that gives the lower taxable figure, and they support your return if HMRC asks questions. Our allowable expenses guide explains what counts as a business cost.
Other income stays taxable
Qualifying care relief covers fostering receipts only. Income from a job, pension, savings or property is taxed in the normal way, and goes on the same return.
Making Tax Digital
GOV.UK guidance on qualifying income for Making Tax Digital confirms that income covered by qualifying care relief does not count towards the MTD threshold. Fostering alone is therefore unlikely to bring you into MTD; check our free MTD check if you have other self-employed or rental income.
National Insurance, Pension and Benefits
- National Insurance credits: foster carers can apply for Class 3 NI credits, which count towards the State Pension, using HMRC’s CF411A form.
- Benefits: The Fostering Network’s guide to benefits explains that fostering payments are generally disregarded as income for Universal Credit and other means-tested benefits. You should still declare them on your claim and explain that they are fostering payments.
- Working while fostering: many carers keep a job, depending on the type of fostering and their service’s requirements. Earnings from a job are treated normally for both tax and benefits.
If you claim benefits, tell the benefits office about your foster parents payments when you start fostering and whenever your placements change. Mention any fees separately, because a small number of fostering-related payments, such as being paid to train other carers, can count as earnings.
When a Child Turns 18: Staying Put Payments
The national minimum allowance stops when a young person turns 18, even if they stay with you. Under staying put arrangements in England, a young person can remain with their former foster carers, often until 21, and the council usually makes a payment to support this.
Staying put carers can also use qualifying care relief, as HS236 explains. Ask your service how its staying put payments work, because they replace foster parents payments once the young person turns 18 and the amounts can differ.
Payments for Kinship and Family Carers
Family members or friends who become approved kinship foster carers for a local authority should receive at least the same minimum allowance as other foster carers. Other arrangements, such as special guardianship or child arrangements orders, are paid under different rules, and payments may be means-tested.
Ask your council which arrangement applies, because it affects both the amount and the tax position. HMRC’s HS236 lists which kinship arrangements qualify for qualifying care relief.
Mistakes to Avoid
| Mistake | Result | Better approach |
|---|---|---|
| Assuming no tax return is needed | Possible penalties | Register as self-employed and file each year |
| Confusing the allowance with the fee | Unrealistic budgets | Get a written breakdown from your service |
| Comparing headline figures only | Choosing a weaker package | Compare fees, retainers, extras and support |
| Not keeping records | Hard to choose the best tax method | Keep a simple record of receipts and dates |
| Forgetting other income | Underpaying tax | Report job, pension or rental income as usual |
Foster Parents Payments: FAQs
How much do foster parents get paid in the UK?
At least the national minimum allowance for each child, from £176 to £309 a week in England in 2026/27, plus any fee your service pays.
Is the fostering allowance paid per child?
Yes. The allowance is paid for each child in your care, so caring for siblings increases the total.
Do foster parents get paid between placements?
Some services pay a retainer between placements, but not all do. Ask before you sign up.
Do foster parents pay tax?
Most pay little or none, because qualifying care relief covers fostering income up to £20,440 per household plus a weekly amount per child.
Do I need to do a tax return?
Yes. Foster carers are self-employed and should file a Self Assessment return, even when no tax is due.
Does fostering affect my benefits?
Fostering payments are generally ignored as income for Universal Credit and most means-tested benefits, but you must still declare them.
Can I work and foster?
Often yes, depending on the type of fostering and what your fostering service requires.
Do kinship carers get the same payments?
Kinship foster carers approved by a local authority should receive at least the minimum allowance. Other kinship arrangements are paid differently.
When are foster care allowances reviewed?
England’s minimum allowance is updated every April, and services review their own rates regularly.
Final Verdict: Understanding Foster Parents Payments in 2026/27
Foster parents payments combine an allowance for the child’s needs, which can’t fall below the national minimum, with a fee that varies between services. Compare the whole package, including extras and support, before choosing a service. Most fostering income is covered by qualifying care relief, but you still need to register and file a return each year.
- Ask each service for a written breakdown of allowance, fee, extras and retainers.
- Register as self-employed once you start fostering.
- Keep a simple record of payments and weeks of care for your tax return.
- GOV.UK – Help with the cost of fostering
- GOV.UK – Tax arrangements for foster carers
- HMRC – HS236 Qualifying care relief (2026)
- GOV.UK – Qualifying income for Making Tax Digital
- GOV.UK – NI credits for parents and carers (CF411A)
- Scottish Government – Foster and kinship carers payment rise
- The Fostering Network – Allowances
- The Fostering Network – A guide to benefits for foster carers