Finances
Foster Carer Allowances
The minimum allowance you’ll get depends on where you live and the age of the child you care for. The allowance is updated every April.
At the Acorns, foster carer allowance ranges between £450 and £550 per week. This is determined by the age and need of the child.
National Insurance
Three types of National Insurance contributions apply to foster carers: Class 2, 3 and 4.
Class 2 National Insurance Contributions (NICs) to go towards your state pension
Class 3 National Insurance credits can be applied for and also contribute to state pension.
Class 4 National Insurance Contributions must be paid if you make a certain amount of profit from your self-employment.
Working or not working
You will have to register as self-employed when you start to foster, which means you’ll need to file tax returns. If you need support around this, At the Acorns will pay for you to use the companies’ accountants.
Foster Carers qualify from generous tax exemption and tax relief. Qualifying Care Relief (QCR) calculates a tax-free threshold (qualifying amount) based on your household. If your total fostering payments are below this, your income is tax-free.
Transferring Foster Carers
If you are transferring from another fostering provider and have a child/children in place, we will, upon your official transfer date to our service, pay you a welcome payment in recognition of the time that you have spent undergoing our assessment process. You should not be financially disadvantaged for transferring between agencies and we undertake to match what you currently earn, and, in some cases, your payments may increase.