Fostering can be a very demanding job requiring you to be constantly available to nurture and provide support to children. Foster children may be experiencing upheaval, uncertainty and trauma in their lives. Once you are an approved Diagrama Foster carer, you will receive foster care pay. This foster care payment is for your time, care and expenses. Also, registering as self-employed with HMRC will gain you access to unique and generous tax benefits in addition to your carers allowance.
All foster carers can claim Qualifying Care Relief. This scheme is designed for foster families, it includes a tax threshold of £10,000 per household. Carers can also claim £200 per week for foster children up to the age of ten, and £250 per week for 11-18-year-olds. This means, for example, that a family providing year-round foster care to a 12-year-old child would qualify for £10,000 Qualifying Care Relief per year plus 52 weekly payments of £250, which equals £23,000 in earnings before they are required to pay any tax and National Insurance contributions.
Depending on the circumstances of your family and foster children, you may also be able to claim additional benefits.
All foster carers will receive a fostering allowance for each child they provide a home to. This will cover expenses such as food, clothes, travel, entertainment, holidays and other costs for the children’s care. Diagrama will discuss your foster care payments as part of your application process. Every fostering agency will have its own rates and arrangements for fostering allowances.