How much can I earn as a Foster Carer?
We all know that money isn’t the first consideration when you are thinking about becoming a foster carer. But it matters, and we get that. When working out potential income it is worth noting that carers who look after children receive certain payments (qualifying amounts) tax-free.
Read on to discover more
What you can earn as a foster carer
The examples below are actual earnings for the financial year 2024-2025 from a cross section of Foster Carers who foster with Sandwell
Please note that payments are dependent on your experience as a carer, how often a child is in your care, the type of care you provide and the ages of the children you are caring for. These examples are for illustration purposes and are based on caring for a child or children for the whole year.
Level 2 Carer
Caring for one child aged 12
£20,717 pa
Including maintenance, fees, birthday, Christmas and holiday allowances
Level 3 Carer
Caring for two children aged 12 & 15
£47,763 pa
Including maintenance, fees, birthday, Christmas and holiday allowances
Level 4 Carer
Caring for three children aged 8,16 & 17
£81,114 pa
Including maintenance, fees, birthday, Christmas and holiday allowances
Tax free earnings for foster carers
As a foster carer you’ll be able to claim a tax exemption of up to £19,360 per household. In addition, you will also get tax relief for every week (or part week) that a child is in your care. This means you do not usually pay tax on your earnings from foster care, even if they go considerably over £19,360.
The vast majority of carers pay no income tax at all on payments received for fostering. It only becomes a factor if you progress to being a high level carer who is taking care of several children all your round. On the examples above only the level 4 carer would be liable to pay any income tax.
More information regarding tax arrangements for foster carers can be found on: https://www.gov.uk
Payments for Foster Carers 2024/2025
Download the PDF document for a detailed breakdown of the payments and allowances for Foster Carers.
New to fostering?
Already fostering?
The rewards of foster caring extend far beyond the positive influence on a child, as fostering can bring personal growth, fulfilment, and a sense of purpose to your own life.
Together, we can create a brighter future for vulnerable children and build a more compassionate society.