Use our finance calculator to work out your potential earnings
Use our finance calculator to work out your potential earnings.
Use our finance calculator to work out your potential earnings.
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How the fostering allowance works
Chrysalis foster carers receive a weekly fostering fee, plus age related allowances to cover the cost of looking after the child. You will continue to receive your fostering fee whilst taking planned breaks (respite), and the child’s allowance will be paid to the planned breaks carer.
Fostering mileage of up to 200 miles per week is included in the allowance. Mileage over that amount can be claimed at a rate of 40p per mile.
Foster carers are treated as self employed, and claim their fostering payments on a monthly invoice system. Chrysalis pays fees and allowances directly into your bank account. It is important to remember you could still be entitled to other benefits.
Additional Fostering Rewards
Relax & Recharge
Respite Reclaim
Blue-Light card
Max card
Gift Milestones
Annual Events
Tax benefits for foster carers
You should be register as self employed when you start to Foster and you will need to submit a Tax Return each year.
As a Foster Carer, each year, you are tax exempt up to £18,140 per household on money you earn from fostering. Please note you will still pay tax on money you earn from a job or investment.
On top of the £18,410 exemption, you can get tax relief for every week (or part Week) that a child is in your care.
Age of Child Tax Relief
Under 11 £375 per child
11 or over £450 per child
This is known as qualifying care relief.
A simplified example
If you Foster a 15 year old for a whole year, your tax free amount would be as follows:-
Tax exemption = £18,140 + Tax relief for child (52 weeks x £450) = £23,000
Total Tax free amount = £41,140.
Please note that being a foster parent can affect benefits.
Please find attached a link from HMRC which will provide you with all the information you need:-
https://www.gov.uk/support-for-foster-parents
If he did not have any other taxable income, his personal tax allowance would be added to the ‘qualifying amount’ and he would not have to pay any income tax on what he earned from fostering (Exact payments and qualifying amounts are dependent on the age of the child fostered).
See www.hmrc.gov.uk/individuals/foster-carers for more information.
Don't just take our word for it!
Find out more about fostering with Chrysalis.
Frequently Asked Questions
Do foster parents receive child benefits?
You can continue to claim child benefit for your own children and other children that live with you, however you can’t claim for children that you are fostering. As you are already receiving an allowance for each foster child or young person in your care.
Will I be paid in between fostering referrals?
We do not continue to pay fostering allowances in between foster referrals, however we always aim for you to have little time without a child or young person, should this be your wish.
Can I continue to work while receiving foster care allowance?
As meeting the complex needs of a foster child or young person may be a challenging role,ideally ask for at least one foster parent to be available for fostering on a full-time basis. In order to ensure the child in your care is being looked after in the best way possible, flexibility is required for day-to-day tasks such as the school run, school holidays, attending medical appointments on behalf of your foster child, and to attend any training or review meetings.
However we appreciate all families are different and each will be judged on an individual basis. Please contact us to chat about this further.
Chris, Therapeutic Foster Carer
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