At Rainbow fostering we know the importance of treating our foster carers as professionals. We recognise their commitment, skills and the valuable work they do so we pay a competitive allowance. Our foster carers can then be certain that we both value and appreciate them for the challenges and demands they face.
The allowance is paid on a weekly basis per child ranging from £xxxx. The allowance may be significantly higher for a child or young person remanded into care or for one who has complex or special needs. Check: we issue statements for allowances paid
check this is significantly above the government’s minimum fostering allowances which are currently in place.
The Fostering Allowance includes payment for the carer as well as allowances for the child maintenance aspects of fostering. These include for:
- Pocket money and savings
- Expenses for clothes
- Expenses for leisure activities
- Expenses for travel (free and reduced rates apply for children under 16)
The allowance is paid on a weekly basis per child ranging from £350 – £375. This allowance may be significantly higher for a child or young person remanded into care or for one who has complex or special needs.
CHECK: we also add an allowance for holidays, birthdays, religious, cultural festivals
Some years ago the government introduced favourable tax benefits for foster carers meaning that all foster carers are now deemed by the inland revenue to be self employed. So as a foster carer, your entitlement is not just restricted to competitive allowances and fees. You may also be entitled to other benefits including tax relief.
Fostering with Rainbow will mean you will be classed as self-employed. This means you will be entitled to tax relief on your fostering income and the likelihood is you will pay little or no tax and national insurance. The level of tax relief you will receive does depend on your individual financial circumstances and you will still need to complete a tax return.
Tax exemption and relief
There is a fixed tax exemption of £10,000 per year meaning you will not have to pay tax on the first £10,000 you earn from fostering. It may be possible for you to receive tax breaks on additional earnings over £10,000.
Benefits and tax credits
You will be unlikely to lose any existing benefits and you will still be able to claim Child Tax Credit in respect of your own children. Your eligibility will remain for National Insurance Credits which count towards your basic state pension. You may also be eligible for Working Tax Credit depending on your circumstances.