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Fostering - financial support

We know that people don’t foster for the money, but we don’t want finances to be a barrier for anyone who would consider fostering with Warwickshire, so here we have outlined how Warwickshire Fostering allowances work.  

For more detailed information and updated financial information, please see our 2025/26 guide. 

What is a fostering allowance? 

For each child coming into your care, you will receive a ‘basic allowance’ per week that covers the cost of living per child that lives with you. You will also receive a clothing and personal allowance for each child per week which depends on their age range.

We publish the annual fee schedule in our downloadable guide.

What is a Skill Level Allowance? 

Carers who have met required standards, are also eligible to receive a skill related payment per child per week on top of their basic allowances. This is awarded on the basis that carers increase their experience and knowledge over timAe and receive payments to reflect their expertise.

Specialist Foster Care Schemes

Some children need specialist care to ensure their needs are met and that they can thrive. As a result, we have developed a range of specialist schemes that pay a regular fee at a higher rate. 

This is to ensure we are able to offer skilled and experienced foster carers to those children who really need it. Specialist foster carers need experience working with children who may present with challenging behaviours or additional needs, so that they are skilled and prepared to manage any difficulties that may arise.

These include:

Transferring from other local authorities/ agencies and relevant experience

Anyone transferring to be a mainstream foster carer for Warwickshire, or who has prior professional experience, may be considered for the Skill Level Scheme. This is subject to foster carer approval and applicants being able to evidence that they meet the appropriate criteria.

Additional payments

We offer additional payments for each child for their birthday, a contribution towards a holiday and a festival allowance for events like Christmas or Eid.

My benefits 

 As a foster carer you may be entitled to claim benefits and tax credits. The allowances and fee you receive from fostering are normally completely disregarded as income or only taxable profit from your fostering is taken into consideration for the purposes of calculating your entitlement to benefits.

Tax relief 

Income from fostering is subject to income tax and foster carers are regarded by the Inland Revenue as self-employed and as such need to complete an annual tax return. However, foster carers are entitled to ‘Foster Care Relief’; below a certain threshold and carers are exempt from paying income tax on the money they receive as carers. 

How are allowances paid? 

Weekly allowances are paid by BACS in arrears on alternate Tuesdays for the fortnight ending the previous Saturday. 

Next steps 

Whatever stage you’re at, we’d love to hear from you.