Allowances & fees

How fostering allowances work

Foster carer payments come in two parts: a maintenance element and a fee element. The maintenance covers everything the child needs (food, clothing, transport, school costs, hobbies, pocket money). The fee is what you receive in recognition of your time, skill and the care you're providing.

All payments are in pounds sterling, paid weekly directly to your bank account. We do not deduct anything for ourselves from the maintenance element.

What allowances cover

• Food, clothing and toiletries for the child
• Pocket money appropriate to age
• Transport, school costs and uniforms
• Hobbies, activities and reasonable treats
• Holiday allowance
• Birthday and festival allowances
• Wear and tear on your home
• A fee element paid to you as the foster carer

What you could receive

As a foster carer with Embrace, you could expect a weekly allowance of between £450 and £800 per child. The amount reflects the age and background of the children who come to live with you, and the type of placement.

Growing with Embrace: Level 1 to Level 2

Everyone new to fostering starts at Level 1. You move to Level 2 after two years and successful annual reviews. If you bring significant prior experience or qualifications, a discretionary agreement may let you start at Level 2.

Level 1 carers work in line with the Foster Care Agreement, engage with the full training programme and the therapeutic group sessions, contribute to reviews and meetings, and complete the Training, Support and Development Standards for foster care.

Level 2 is reached after two years and positive reviews. Level 2 carers continue everything above, show continued development, are willing to complete the Level 3 Diploma in health and social care (children and young people), and help buddy newer carers.

Specialist placements, solo, complex, and parent and child, attract an enhanced allowance towards the top of that range. These are agreed with the placing local authority and reflect the extra support involved. Transferring carers move across on their current level and allowance, subject to clarification.

Seasonal allowances and your annual bonus

We know the most expensive times of year, so on top of your fee Embrace pays £150 in June towards your summer holidays, £150 in December, and £50 towards the young person's birthday. That's an extra £350 a year as standard.

And because foster carers put everyone else first, fostering households also receive a £500 bonus (pro rata) after a successful annual review, with mandatory training complete, household compliance in place (gas, electrical, car and home insurance) and CHARMS records signed off. From us to you: well done, and thanks.

What that looks like over a year

Take an experienced carer with one child. On top of their weekly allowance they receive 14 days' holiday pay (£1,000), the seasonal allowances and the birthday allowance. All told, that's a package worth around £27,350.00 a year, plus the £500 household bonus after a positive annual review.

Tax and benefits

Most foster carers pay no income tax on their fostering work because of HMRC's specific foster carer tax relief scheme. The current scheme allows:

• A fixed exemption of £18,140 per household per tax year
• Additional weekly relief: £375 per week for children under 11, £450 per week for children aged 11+

Most carers find this generous tax relief covers their fostering income entirely. Foster Talk membership (included with your Embrace approval) provides specialist tax advice when you need it.

Foster carer income is generally disregarded for means-tested benefits, but rules vary. Foster Talk also includes benefits advice as part of your membership.

What we don't charge for

Membership of Foster Talk, all training (including Skills to Foster), supervision, panel, the support line, Embrace Each Other groups, fun days, consultation events. All included.