What Is the Money Like for a Foster Carer?

At Step by Step, we believe in being open, honest and empowering. So, here’s what you need to know about fostering pay, allowances, and the financial support available when you foster with us.

Why Asking About Money Matters

Fostering is about care, not cash – but that doesn’t mean finances don’t matter. In fact, we encourage potential carers to ask about money. Here’s why:

• It helps you make an informed decision
• It gives you confidence to commit long-term
• It removes stigma around asking honest, practical questions

We know that people who foster are doing it for the right reasons. But we also know that financial stability helps create a secure, nurturing home. You deserve to feel supported in every way – emotionally, practically and financially.

How Foster carers are paid

Foster carers don’t receive a salary as such, but they are given a weekly allowance for each young person in their care. This is designed to cover the cost of food, bills, travel, clothing, activities and other day-to-day needs. With Step by Step, the allowance is also designed to recognise your time and commitment.

When it comes to fostering there is no set fee. The amount of money you will receive depends on a range of factors, including the agency you choose, how many children you foster, the child or young person’s individual needs and requirements, the type of fostering you can provide, and your own unique skill set.

At Step by Step Fostering, we pay anywhere between £380 to £585 per week depending on the placement type.

Here’s what you can expect:

• A tax-free weekly allowance per young person
• Additional payments in some cases (e.g. higher needs placements)
• Training, support and supervision included at no cost to you

Every placement is different, but we aim to provide an allowance that makes fostering a viable option for people from all walks of life.

What About Tax and Benefits?

This is another common worry – and again, there’s good news.

Most foster carers in the UK benefit from a scheme called Qualifying Care Relief. It means:

• You don’t pay tax on the first £18,140 of income plus £375–£450 per week per child
• Most carers pay little to no tax on their fostering income

Fostering payments usually don’t affect benefits like Child Tax Credit or Universal Credit either, though it’s worth checking with a specialist adviser.

You can find detailed, government-backed guidance on this via the HMRC website, and additional foster-specific advice from The Fostering Network.

Money isn’t the only support

At Step by Step, we’re proud of the practical financial support we offer. But we’re just as proud of the wraparound care that comes with it.

Every foster carer with us also receives:

• Initial and ongoing training tailored to you and your placement
• Round the clock support from experienced staff
• Peer networking and connection with other carers
• Local support visits and check-ins to help you thrive

It’s not just about giving a home. It’s about feeling part of something bigger – a community of carers and professionals changing young lives together.

Thinking About It? Let’s Talk

We know that questions about money are just one part of your decision. But we hope this article has helped you feel more informed and empowered.

If you’re curious about fostering, even just a little bit, you can:

There’s no pressure, no obligation, just honest conversations. Because behind every hero is someone who cares. And that someone could be you.