The payments for foster care in Wales are made up of two parts and knowing the difference will help you to plan, budget and identify any potential under payment.
Allowance Versus Fee
The Fostering Allowance will be used to purchase items to support the child i.e. food, clothes, activities, travel etc. In addition to the fostering allowance Foster Carers receive a Foster Carer Fee for the care and skills that they bring to caring for a child or young person. The Foster Carer Fee is paid on top of the fostering allowance and will be separately identified on payment made to the Foster Carer.
What Affects Your Rate
The amount of income that Foster Carers receive is dependent upon the child’s age, the level of their needs and the Foster Carer’s experience. Foster Carers receive the National Minimum Allowance set by the Welsh Government which currently ranges from approximately £155 per week for the youngest children to approximately £210 per week for older children. However, specialist carers and those caring for children with particularly complex needs can receive significantly higher income.
Tax and National Insurance
Note: The fee is classed as part of your self employment income. As a foster carer most of it will be tax free because of the Qualifying Care Relief scheme. It is however vital that you register as self-employed with HMRC and complete a tax return every year.
If Your Rate Seems Wrong
Check the payment against the current Welsh Government National Minimum Allowance rates and if there is a discrepancy, speak with the supervising social worker.
For Foster Care Barry, visit https://saferfostering.org.uk/foster-care-wales/barry/.
Understanding your payments and entitlements helps you to plan for the children in your care.
