Allowances

The Fostering Network has campaigned for foster care allowances over the course of its almost 50-year history. The entitlement to allowances and recommended national minimum allowances now exists across the whole of the UK. It is important that allowance levels cover the entire costs of caring for a child and supporting them to thrive. 

What are allowances? 

All foster carers receive a weekly fostering allowance from their fostering service when they have a child living with them, which is designed to cover the cost of caring for a child in foster care. This includes food, clothes, toiletries, travel and all other expenses incurred and varies depending on the age of the child. 

Two thirds of foster carers that responded to our State of the Nations' 2024 survey said that their allowances do not meet the full cost of looking after a child. This puts additional pressure on fostering households, particularly during the cost-of-living crisis.   

Foster carers may receive a fee from their fostering service on top of allowances to recognise a foster carer's time, skills and experience. While all foster carers receive an allowance, there is no requirement for fee payments to be made. The Fostering Network, however, believes that foster carers should receive a fee for the vital role they do. For more information, see our foster carers fees page.

Fees and allowances should be separate and clearly identified so that foster carers know which portion of the fostering income should be spent on caring for the child in their care, and which is for the role that they do. However, some fostering services will make a lump sum ‘financial package’ which does not make the split clear. 

National minimum allowances (NMA) 

Each government of the UK sets its national minimum or recommended allowance for foster carers according to the age and needs of a child. As of August 2023, after the Scottish Government introduced a recommended national minimum allowance, there are now national minimum allowances across the whole of the UK. The Fostering Network has campaigned for this for decades. 

In England, following the Independent Review of Children's Social Care, the Government announced a 12.43% uplift to the national minimum allowance in February 2023. In December 2023, the Government announced that the NMA would be raised by a further 6.88% for the 2024/25 financial year. This is above the rate of inflation. 

In February 2025, the Welsh Government announced a 2.6% increase to allowances for 2025/5. In 2023, the Northern Irish Government announced a 3% uplift. 

The weekly NMA rates for each country are below: 

*these are the 23/24 allowance rates which are currently still being paid while a decision is made about new 24/25 rates 

As the table shows, there is a great variation in the NMAs across the UK. The current national minimum allowances (NMAs) set by governments across the UK are not enough. The rates are based on out-of-date research, have not been keeping pace with inflation and do not cover the full costs of caring for a child. Foster families are currently receiving much less than they need to support the children and young people in their care to achieve their best possible outcomes.   

Our allowances report 

Paying in line with the government's NMA is not statutory, nor is it monitored nationally. This results in inequality for children due to the variation in financial support available. Foster carers have to dip into their own pockets to cover the costs of caring. This has been an issue for foster carers for many years, well before the current cost-of-living crisis.  

Insufficient allowances are putting unnecessary pressure on fostering households. As the number of children entering care continues to rise, it is essential that we support foster carers and ensure there are the right number with the range of skills and knowledge to meet the needs of the children who need them most.  

Every year, The Fostering Network checks the allowances paid by all local authorities in England, Scotland and Wales and health and social care trusts in Northern Ireland to ensure they meet national minimum levels, and campaigns for them to be brought up to these levels where they are falling short. 

Our latest report shows: 

• Allowances in England, Wales and Scotland vary considerably – with some children receiving up to £198.57 per week less than others which equates to £10,325.64 per year.
• Northern Ireland is the only nation where all trust foster carers (which includes all kinship carers) receive the same rate of allowances to cover the cost of caring for a child in foster care.
• The additional allowances foster carers can claim on top of their weekly amount are inconsistent and complicated – some foster carers can claim over £950 a year to take a young person on holiday, while others have no holiday allowance.
• The absence of a NMA for post-18 arrangements has resulted in even greater variance. In England, for example, some young people receive up to £12,000 less financial support per year to remain living within a foster family.
• In addition, due to inconsistent local policies, some young people in post-18 arrangements are expected to contribute up to £140 per week while others do not have to contribute at all. 

Read our latest report for 2023/24

Read our two page cost of living briefing 2022

Read previous reports from our surveys

#CostofFostering campaign 

Our #CostofFostering campaign is calling for a fairer funding framework that covers the full costs of caring for a child in foster care and supports them to thrive.  

Our calculations supported by Pro Bono Economics, are based on the Minimum Income Standard for the United Kingdom and Nina Oldfield's ‘The Adequacy of Foster Care Allowances’ which include the additional costs of caring for a child in foster care.   

The Fostering Network’s new 2025/6 recommended rates are:  

• £250 per week to raise a child in foster care aged 0-4 years
• £332 per week to raise a child in foster care aged 5-10 years
• £428 per week to raise a child in foster care aged over 11 years.   

*The 2025/26 rate increase includes the rising rate of inflation, changes in how food costs are calculated and changes to hairdressing calculations to be inclusive of the cost of haircare for all hair types

The Fostering Network is calling on governments across the UK to:   

• Significantly invest in the rates of fostering allowances to ensure they cover the full costs of caring for a child in foster care so they can thrive.
• Increase the upper age limit of the NMA to ensure that young people, while still living in a fostering household in post-18 arrangements, can access stability and support into adulthood.
• Regularly review their NMAs in line with annual inflation and other relevant factors.
• Expect all fostering services to adhere to nationally agreed allowances.
• Work with regulatory bodies for fostering in each nation of the UK to introduce systems to monitor compliance with the NMA, in line with current regulatory requirements, to ensure consistency for children, foster carers and potential future foster carers. 

Visit our Cost of Fostering page to find out more information. 

Foster carer allowances debate 

In January, Martyn Day (SNP) lead a debate on foster carer allowances and tax arrangements. This was in response to an e-petition raised by FosterTalk. The petitions committee selected the issue for a Westminster Hall debate and chose Martyn Day to lead it. We met with Martyn Day and briefed him on the issue. We also sent a briefing out to all MPs ahead of the debate. 

Many of the issues we highlighted were raised in the debate. This includes the inconsistencies in how the NMA is met across the country, the postcode lottery of fees and allowances and the key findings of our allowances report. 

One of the issues raised was the need for the NMA to reflect the full costs of caring for a child. As part of our #CostofFostering campaign we calculated the allowance rates that cover the full costs of caring for a child in foster care and supporting them to thrive.

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