Finances for Foster Carers
Typical annual income...
With Ikon Fostering the typical annual income for a foster carer can vary according to the number of placement, type of placement and experience of a carer.
The amount paid depends on a few things such as the type of care the child needs, and it is typically tax free.
Find out more below…
What can you expect to get as a foster carer?
- Industry leading fostering allowances for a young person or child in your care
- Exemptions from paying tax on this allowance
- You will need to register as self-employed and pay NI contributions
- You may be entitled to tax credits too
You need to cover the costs of food, clothing, transport and activities out of payments made to you for children in placement, but most of all you will be providing care and support in your home to a child or young person at a vulnerable time in their lives.
Everyone’s fostering allowance is different; because it is dependent on the type of fostering placement & care provided, for example if a child has complex needs or a medical condition requiring extra support & expertise then a different or higher level of allowance may be applicable. The age of the children will also have an effect on the fees.
In general, foster carers are exempt from paying tax on the fostering allowance. The exception would be if a foster carer with multiple placements or additional work gave an income above the current government threshold.
For tax purposes, foster carers are regarded as self-employed.
There is more detail information about this from the Government here.
Foster carers must register as self-employed & pay relevent National Insurance contributions.
More information regarding Self-Employed National Insurance can be found on the Government website here.
Fostering counts as self-employment, so you will be entitled to continue claiming for Working Tax Credit/ Universal credit and also Child Tax Credit if you have children of your own.
As far as being eligible for any other benefits simply get in touch with the DWP (Department of Work & Pensions) here.
As an Ikon Carer you will eligible for many one-off allowances on top of your weekly amount. These will include ones for festivals, birthdays, yearly allowances based on training completed, school equipment allowance…the list goes on.
Start your fostering journey with Ikon Fostering
Dedicated and Supportive
We place young people and children with foster carers across the UK, including: Walsall, Dudley, Wolverhampton, Bilston, Aldridge, Lichfield, Tamworth, Telford, Birmingham, Coventry, Stafford, Warwick, Worcester, Brierley Hill, Stourbridge, the West Midlands, Staffordshire, Shropshire, surrounding areas and many other parts of the UK.
To find out more get in touch…