Money Matters and Insurance

Once you have completed the preparation training and the fostering induction standards and have a child/young person in your care, you will receive the fostering allowances listed in the tables below. Allowances are usually made up of two components. The basic age related child allowance, and the skill fee relating specifically to the foster carers tier level within the scheme. The Fostering Service will review the age related child allowance on an annual basis to ensure it is set at a level no less than the national minimum. The skills fee is currently under review and once agreed the handbook will be updated with the relevant information.

If you have any queries about allowances or if you think you have been under or over paid, contact the finance section in the fostering service as soon as possible.

Payments to you are made in arrears, direct to your bank or building society.

While a child is in your care,  you  are entitled to a number of allowances, one being the age related fostering allowance. The current rate for this is shown in the table below and is reviewed yearly. This is paid per week per child.

You will receive a skill fee as per the table below. Each level has a criteria  in relation to experience, skills and training, which your fostering officer will be able to explain to you. Foster Carers’ level of skills and their associated skills payment will be reviewed on an annual basis and a decision will be made as to whether the carers’ level of skill has been maintained, increased or has reduced. This is currently under review. As with the child/young person allowance this is paid per child/young person, per week.

In July foster carers will receive an additional 2 weeks age related allowance per child/ren in their care. This is to assist with the cost of activities/holidays over the summer period.

Pocket money can be given to the child/young person in your care or saved for them.  This can be agreed at the placement planning meeting or discussed with the child/young person’s social worker and your fostering social worker. Below is the table used by our residential services and can be used as a guide to how much pocket money a child/young person in each age range should receive.

The Christmas/Festival Allowance is provided to purchase a gift or gifts and to provide a contribution towards the costs of celebrations.

In November, Foster Carers will receive an additional 2 weeks age related allowance per child/ren in their care. This additional payment is to be used to purchase Christmas gifts for the child/ren in their care.

If there is a change for that child/ren before the festive period and they move out of your care,  you will be expected to repay any monies that have not been spent on gifts.

If the carer has purchased the gifts from the additional allowance paid and the child/ren move these gifts are moved with the child/ren to their new home.

If the carer has not purchased gifts with their additional allowance, they will be expected to pay this additional allowance back to the department.  The new foster carer will then be paid their additional 2 weeks allowance to enable them to purchase the gifts for the child/ren in their care.

Any discrepancies or queries in relation to individual foster carers circumstances will be discussed with fostering social worker/team manager/service manager for a decision which will be recorded.

Retainer payments are made when a child/young person moves out of your home (regardless of the duration of the placement) and paid up to 28 days, where you are available and have an approved vacancy.

Retainers are not payable following EDT and emergency placements that do not last more than 7 nights or any respite placements.

A retainer can only be paid if you are able to have a child/young person in your care based on your approval numbers which are specified at panel or within your foster carer review.

Retainers will be paid on your “preferred” availability. Should you request additional availability, approval will need to be sought at your next foster carer review. No additional retainer payments will be made until agreement has been provided.

If you go on holiday immediately after a child moves on, the retainer will commence once you return from your holiday and are available to care for a placement. Continuation of the retainer payment will only be made where you have taken no more than 15 days holiday from the time the child/young person moved on.

A retainer payment will not be made where you have not cared for the child/young person for the full 28 days’ notice period. The full 28 days’ notice period must be received in writing and can only be accepted following discussions and agreement in a formal care Team Meeting.

The Retainer will stop if another child/young person moves in mid retainer.

In order to promote stability for children and young people, you will receive a ‘stability payment’. You will receive a stability payment at Levels 2, 3 and 4 which is equivalent to 2 weeks age related fostering allowance and this is paid at the end of the financial year, where you have demonstrated stability for the children you care for, subject to the following criteria:

• A fostering household who have undertaken a short-term/permanent placement for at least 6 months within the financial year;
• New foster carers approved during the financial year will not receive payment unless they meet the criteria set out above i.e. placements for at least 6 months during the financial year.

The Stability Payment will not be paid if you have more than 21 nights holiday/respite where children and young people live elsewhere, either with other carers or using your support network.

Expenses are paid by the fostering service for making trips to hospital/medical appointments; transporting a child to and from school/nursery; attending reviews; attending training; taking a child/young person to and from family time or for introductions to a new family they are to live with. Expenses will not be paid for taking a child/young person shopping, to a birthday party, to meet friends or any leisure activities. This will be at a set rate per mile.

Discuss with your fostering Social Worker, any requests for specialist equipment. Please check with your fostering social worker if any financial support will be given before purchasing any equipment and how much this will be. If the equipment costs more than the agreed amount you will be expected to fund the difference.

When a child first arrives there may be a need for extra money to buy clothes. Please discuss this with your fostering  social worker  and gain agreement before purchasing. If the child is placed in an emergency or out of office hours and needs clothing, this can be purchased up to a maximum cost of £200 per child, depending on age and need.

If a child/young person you are caring for needs a passport or birth certificate, please request this via the child’s social worker.

If you foster you may be eligible for National Insurance Credits which count towards your State Pension. It is the foster carers’ responsibility to check this.

You should keep a record of how the allowance is being spent on a child/young person. You should keep receipts. The child/young person should sign for money they are given e.g. pocket money. This helps build a record of what has been spent, which you can show if asked about it at a later date.

You must inform your Home, Building and Contents and Car insurance company once you have been approved as a foster carer.

Tell them about the numbers of children and age ranges you expect to take. You should ask the insurance companies for written confirmation that they have included foster children on your policies. A copy of these letters should be given to your fostering social worker. If a child in your care does cause any damage within the home, you will be expected to claim for this from your house insurance, (if you want to). The fostering service will not replace/repair any damage caused within your home.