Foster Caring is a professional occupation.

For many years fostering was seen as a vocation or a voluntary service, something you did to help those children in the community who were in need. Over many years this perception has changed to reflect the greater obligations society has to protect those in need. Most people are aware that if you are employed working with vulnerable people such as children or the elderly; the law requires that you are suitably skilled and qualified and all appropriate legal checks have been completed into your background. This thinking also applies equally to foster care.

Foster Care as a profession

It is now recognised that foster carers need a significant number of skills and personal qualities when caring for vulnerable, damaged and sometimes challenging children/ young people and are expected to carry out this role according to the same strict legal standards that apply to other professionals who are employed to work with children.
For this reason foster care has become seen as a profession rather than a vocation and in addition to the financial support a foster carer receives for the child/ young person in their care, they also now in most if not all cases, will receive a professional fee in recognition of the hard work they undertake and their individual skills and experience.

As a foster carer you would expect to receive an allowance to cover the cost of caring for another child. This is based on nationally set figures and is there to cover your foster child’s everyday expenses such as food, clothing etc.

Foster Carers and Tax

Although foster carers receive a fee or ‘wage’ for the work they undertake they are classed, for tax purposes, as self employed. You would be required to completed a self assessment and submit this to HMRC each year. However, there are generous allowances available against the income you earn. Foster carers are able to earn up to £10,000 per year for each child fostered before they are required to pay tax on their earnings. The allowances you receive for your foster child (children) are not usually subject to tax. However, foster carers who have multiple placement or continue to work may be liable to pay tax if their income is above the levels set by HMRC. You can find additional guidance about this from HMRC.

Foster Carers and Benefits

If you have previously received benefits and become a foster carer, the fees you receive may take you above the threshold to continue to qualify for benefits. If you are concerned that you may potentially lose benefits you should discuss this with your chosen Agency when you first apply. This will give you more information as to whether you can afford to foster.