“How much do foster carers get paid?” is one of the most searched questions about fostering in England. It is also one of the most poorly answered — with many websites giving vague figures or conflating allowances with fees. At FosterHub, we believe in transparency. Here is an honest, detailed breakdown of fostering pay for 2026–27.
Understanding the Two Parts of Fostering Pay
Fostering pay in England has two distinct components, and it is crucial to understand the difference:
1. The Fostering Allowance
The fostering allowance is a weekly payment intended to cover the costs of caring for a child. This includes food, clothing, transport, school trips, pocket money, activities, and general household costs associated with having a child in your home.
The allowance is not income — it is a contribution toward expenses. The government sets recommended minimum allowances, and all approved foster carers receive at least this amount.
2. The Fostering Fee (or Reward)
The fostering fee is a separate payment that recognises your time, skills, and commitment. This is the closest thing to “earnings” in fostering. However, not all agencies pay fees:
- Local authorities often pay the allowance only, with no additional fee (or a small fee for experienced carers).
- Independent fostering agencies (IFAs) typically pay both an allowance and a fee, and their total packages are generally higher.
2026–27 Minimum Weekly Fostering Allowances
The Department for Education sets recommended minimum weekly allowances, broken down by the child’s age and the region of England. These are the current rates for 2026–27:
| Child’s Age | London | South East | Rest of England |
|---|---|---|---|
| Under 2 | £201/week | £189/week | £175/week |
| 2 to 4 | £209/week | £196/week | £182/week |
| 5 to 10 | £231/week | £217/week | £201/week |
| 11 to 15 | £264/week | £248/week | £230/week |
| 16 and over | £303/week | £285/week | £264/week |
These are minimum recommended rates. Many agencies — particularly IFAs — pay above these levels. Some specialist agencies pay significantly more for complex placements.
What About Tax?
Fostering income benefits from a generous tax exemption called Qualifying Care Relief (QCR). Under QCR:
- You receive a tax-free allowance of £18,140 per year (the fixed annual amount for 2026–27).
- Plus an additional £305 per week per child under 11, or £376 per week per child aged 11+.
- If your total fostering income (allowance plus fee) is below this threshold, you pay no income tax at all.
In practice, the vast majority of foster carers — even those fostering two or three children — pay no income tax on their fostering earnings. You do need to register as self-employed with HMRC and submit an annual tax return, but for most carers the tax bill is zero.
Realistic Total Packages
To give you a realistic picture, here is what a total weekly package might look like for different scenarios:
- Local authority, one child aged 8 (Rest of England): Allowance only = approximately £201/week (£10,450/year).
- IFA, one child aged 8 (Rest of England): Allowance £201 + Fee £150–£300 = approximately £351–£501/week (£18,250–£26,050/year).
- IFA, two children aged 6 and 12 (London): Combined allowance £495 + Combined fee £400–£600 = approximately £895–£1,095/week (£46,540–£56,940/year).
Remember: the allowance is not profit — it genuinely goes on the child’s needs. The fee is your personal compensation, and even that does not account for the 24/7 nature of fostering. Foster carers are not in it for the money.
Benefits and Fostering
Fostering allowances are disregarded for most means-tested benefits, meaning they do not reduce your entitlement. However, fostering fees may affect certain benefits such as Universal Credit, tax credits, and Housing Benefit. Each case is different, so seek advice from your agency or a benefits advisor before making decisions based on fostering income.
Gaps Between Placements
One often overlooked aspect of fostering pay is what happens between placements. When a child leaves your care and you do not have another child placed with you immediately, your income stops. Some agencies pay a retainer fee during gaps to keep you available, but many do not. This is an important question to ask when choosing your agency.
Is Fostering a Way to Make Money?
We want to be honest here: fostering is not a route to wealth. The allowance covers expenses, the fee recognises your commitment, and the tax relief helps — but fostering is a 24/7 role that requires emotional resilience, flexibility, and genuine care for children.
Most foster carers say the financial aspect is secondary. The real reward is seeing a child feel safe, supported, and loved in your home. If your primary motivation is financial, fostering may not be the right choice for you. But if you want to make a difference and receive fair compensation for doing so, the financial package can work well — especially with IFAs that offer competitive fee structures.
Next Steps
If you want to understand what you could receive in your area, explore our regional guides for location-specific information. Or if you are ready to learn more about the journey to becoming a foster carer, read about the process.