Money Matters and Insurance

Once you have completed the preparation training and the fostering induction standards and have a child placed with you, you will receive at least the minimum fostering allowances listed in the tables below. Allowances are usually made up of two components. The basic age-related child allowance and the competence payment relating specifically to the foster carers tier level within the progression scheme.

Payments to you are made in arrears, direct to your bank or building society. Foster carers can choose whether they would like their payments to be made weekly or four weekly. Payments made directly to foster carers bank accounts are usually made on the Friday of each week.

The weekly payment period is from a Monday to a Sunday.

The remittance slip will show a breakdown of allowances paid for the child placed with you and to you as a foster carer. Remittance slips will be issued on a four-weekly basis

Sometimes, overpayments of allowances occur because circumstances change quickly or because the payments team has not been told to stop the payments.

Foster Carers are paid on a Monday – Sunday basis, with payments going into the bank account on Friday. So, we pay 5 days in arrears and 2 days in advance.

Foster carers can help prevent any overpayments by calling the payments team directly on 0115 8043840 to tell them about any changes or by emailing the payments team on CYPPayments@nottscc.gov.uk. Over payments will all be payable back by the following week's payment due date. If you have any queries about allowances or if you think you have been under or over paid, contact the finance section as soon as possible.

Click here for the national minimum fostering allowances.

The national minimum allowances are only the base minimum rates. The actual allowance that you will receive will depend on a number of factors, in particular the specific needs of the child. You may also get paid in recognition of your skills, commitment or time. Fostering agencies may make one payment to cover both of these.

While a child is Looked After, they are entitled to a number of other allowances. See Financial Information and Advice for Foster Carers for further additional information. This is in addition to the information provided here, it is updated annually to reflect any changes.

In addition to the payment of the National Minimum Fostering Allowances (referred to in Nottinghamshire as the Basic Fostering Allowance), a fostering supplement of £10 per week per child will also be paid. The level of these payments are reviewed each financial year.

For the latest information please see the Support and payments webpage and the document Financial information and advice for foster carers which is linked in the section on Payments.

Foster carers can determine how this fostering supplement is used. Some foster carers might wish to save the supplement to put towards a foster child's holiday, some foster carers might wish to spend the supplement on additional activities for the foster child. Nottinghamshire County Council is not being prescriptive about how this supplement is used.

Payment for skills provides a career pathway for foster carers and recognises and rewards the skills, experience and training of a foster carer in the payment of a weekly fee. Most foster carers, unless approved under former fostering schemes, fostering futures, contract care and home from home provision, are paid under the payment for skills provision.  

This fee is generally referred to as to the 'levels' fee. Foster carers receive a levels fee, linked to their level of approval, whenever a child is in placement with them. The annual foster carer review provides the opportunity to assess a foster carer's performance and decide if the foster carer has met the criteria to progress to the next level.

The amount paid will depend on the age of the child. It is paid once per financial year in addition to the BFA. Foster carers do not have to actually go away during the year to qualify for this allowance and should inform their child's social worker when they want it to be paid. It is normally only paid for children fostered in bridging or long-term placements and in certain circumstances may be paid pro-rata.

Within the basic fostering allowance, a component of this is a recommended minimum amount for savings. Savings accounts should be agreed as part of the placement planning between the child’s social worker, the foster carers, the supervising social worker, and the child or young person where this is appropriate. There is an expectation that all children will leave care with some savings that reflects the amount of time they have been looked after. There should be discussion between the child’s social worker, the foster carer, and the supervising social worker as to how savings will be kept and recorded. It is expected that all children will have a Junior ISA, a long-term, tax-free savings account and that the minimum amount of savings indicated in the allowance table is paid into their trust fund or Junior ISA account. Savings must travel with the child or young person in a timely manner when placement changes occur

Foster carers should save money for children in their own savings accounts, if the child does not already have an account setup for them, then one should be opened. The Share Foundation runs the Department of Education's savings/investment schemes for looked after children and young people. They can confirm if a child already has a Child Trust Fund opened, for children born between 1st September 2002 and 2nd January 2011. They can open an account for every child and young person, under 18, throughout the UK, who has been in care continuously for at least one year and who doesn't already have a Child Trust Fund.

The accounts are for care leavers, up until the age of 25 years. Nottinghamshire County Council is required by Government, to provide the details to the Share Foundation, so that an account can be opened. The money cannot be removed from the account until the young person reaches the age of 18 years. Statements are provided to the local authority. Foster carers can contribute to the savings account, though, the local authority needs to contact The Share Foundation to set this up. In relation to this, the local authority will need to amend any details with The Share Foundation if there is a change of placement for the child.

Further information can be accessed at Nottinghamshire Children’s Social Care Service Procedures Manual, Child Trust Funds and Junior ISA's for Looked After Children Procedure.

Advice around financial management, can be accessed by the young people, as well as their carers, via The Share Foundation website, or via the Advisory Service (Young Enterprise).

Further information in respect of The Share Foundation, can be found at The Share Foundation website

It is envisaged that foster carers should support children in their care to develop budgeting skills. Agreements around the management of pocket money/finances should be discussed at a planning meeting or as and when required in line with the child's age/stage of development. This can be reviewed via the looked after process.

If there are concerns around how a child is managing their money, then this should be discussed with the child and their social worker. If there is a serious risk, then arrangements around finances will need to be reviewed, as required to the individual circumstances. It is important to involve the child, regardless of age, in opening a bank account when they first come into care or there is a change of their circumstances, such as change of address. Different banks will have different requirements.

The foster carer and bank will discuss which bank account  is best for the child and their circumstances. Factors to consider include:

• No overdraft facility;
• Having 2 accounts – instant access and saving.

There are banking apps which can be accessed - 'Go Henry' is recommended and provides a money card, which can support learning budgeting skills. Learning how to budget is a valuable skill that children and young people should acquire as they grow. This is especially important for young people who have learning disabilities who are at particular risks of having poor financial management skills, as they are accustomed to parents or carers managing their money for them. Poor money management skills make them more vulnerable to being financially abused.

This should be included in the first payment in December or the relevant month if another festival is celebrated. The child social worker should be contacted to arrange payment.

We also offer allowances to cover some of the extra costs associated with occasions such as birthdays. The birthday allowance will usually be paid three weeks prior to the child’s birthday. The birthday allowance will be paid up to and including the young person’s 18th birthday. The child social worker should be contacted to arrange payment.

Travel expenses are currently paid at the same rate as Nottinghamshire County Council employees, which is 45p per mile and this is to support you paying for journeys relating to the child/children in your care and for those travel expenses linked with your role as a foster carer for Nottinghamshire. This will include activities such as attending support groups or our foster carer hubs, attending arranged/planned fostering events (including training and conferences). Journeys specifically for the child/children in your care such as medical appointments, specialist appointments (including physiotherapist etc.), educational appointments, attending meetings (including looked after reviews), supporting family time with relatives, and travel to support cultural or religious needs of the child/children.  We will also want to support you with expenses as part of your travel claim such as the use of public transport if you do not have your own vehicle or do not drive.

We ask for you to submit your mileage and expense claims regularly (ideally every month) via your Supervising Social Worker, as claims submitted that are more than six months old or if they span over different financial years, may not be fully reimbursed in accordance with Nottinghamshire’s financial policies. Anything that you think does not fall under the above or are more specialist/one-off occasions, or for any clarification, then please talk to your Supervising Social Worker.

Foster families where the total number of carers (2 if a couple, 1 if a single carer), PLUS the number of the carer(s) own children (under 18 years), PLUS the number of foster children (under 18 years) is six or more, can apply for this allowance. All foster carers can be paid this allowance if the eligibility criteria is met and whether or not a foster carer has their own transport. The allowance is designed to assist foster families with large numbers of children by providing an additional £43.50 per week. Foster carers who are eligible for this allowance can use it to best meet their own circumstances.  If foster carers are, or become, eligible for this allowance, their supervising social worker will make the application for them. Large vehicle allowance may also be payable pro-rota to eligible foster carers

A one-off, maximum amount of £500 is payable to ensure newly approved foster carers have the necessary equipment needed to care for the children and young people they are approved to care for. Thereafter, foster carers are expected to make their own arrangements to replace equipment; except for replacement cot mattresses and car seats which will be paid for by Nottinghamshire County Council. Whilst the basic fostering allowance is intended to cover normal replacement of household equipment, it is not expected to cover the additional replacement costs caused by a child who has damaged household equipment. Where the fostering service manager accepts that there are extra costs, the options are:

• Reimbursement through the foster carer’s own insurance or the authority’s insurance scheme;
• An exceptional compensatory payment.

When a child is placed with a foster carer, they may have insufficient or inappropriate clothing on arrival. In emergencies, you may be provided with a grant of £50 or £100 if required for the child’s immediate clothing needs upon agreement from the child social worker team. This is limited to the beginning of a placement only. Foster carers should retain receipts so that amounts can be reimbursed.

We can provide additional financial support in exceptional circumstances. Instances could include but are not limited to; residential/non-residential school trips, school bursaries and educational/training equipment. We may cover or reimburse payments for statutory documents and life story work record keeping (i.e. identity work), for example, birth certificates, passports, school photos, driving licences. (NB. The cost of driving lessons is covered by the basic fostering allowance). Carers should discuss any queries with their supervising social worker if they believe they require exceptional financial support

Information around passports and documentation required is also available from the GOV.UK website.

All foster carers need to register as self-employed with His Majesty's Revenue and Customs. For further advice and assistance, please contact the following:

New registrations: 0300 200 3504

Registered foster carers: 0300 200 3310

Web: www.hmrc.gov.uk

The income tax scheme, that foster carers use, is called "qualifying tax relief". Please see the leaflet Qualifying Care Relief (Simplified Method) - Tax Scheme for Foster Carers factsheet or refer to www.hmrc.gov.uk or contact The Fostering Network's advice line tel: 020 7401 9582 available between 10am3pm, Monday to Friday.

See relevant information on the GOV.UK website.

If you foster you may be eligible for National Insurance Credits which count towards your State Pension.

The department for works and pensions www.dwp.gov.uk

The pension service for a pension forecast www.direct.gov.uk

You should keep a record of how the allowance is being spent on a child/young person. You should keep receipts where possible. In accordance with the child’s age/stage of development it may be appropriate for them to sign for money they are given e.g. pocket money and clothing allowance. This helps build a record of what has been spent, which you can show if asked about it at a later date.

Any money or gifts/presents given by parents for their children need to go into foster carer recordings and declared to the supervising social worker via email.  Any cash sums over £50 needs to go through the social worker, so there is a receipt of this, and it can be transferred into the child’s savings account or paid directly to the carers towards a gift. It is an expectation that foster carers provide a receipt to show purchase and amount spent. If parents or family members wish to transfer money into the child’s savings account, then the child savings account could be shared via the child social worker. They would not be able to access this until the 18 years.

Nothing is to be put into foster carers accounts or bank details to be shared, unless agreed by all professionals, and parents and foster carers feel comfortable with this. There needs to be a receipt to evidence money received and this be clearly recorded by professionals as to parent’s view around this and agreement for what the money is to be spent on.

You must inform your Home, Building and Contents and Car insurance company once you have been approved as a foster carer. You should inform the insurer and 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 shown to your Supervising Social Worker.

All NCC foster carers are automatically made members of the Fostering Network upon approval. As a member of The Fostering Network, foster carers have access to a variety of benefits. For further details visit:

Foster carer membership (The Fostering Network)

A discretionary retainer fee is payable when a foster carer(s) is suspended from active fostering (due to a complaint/allegation having been made against them), when the department has made a decision to actively retain a placement with the foster carer or when exceptional circumstances warrant consideration. A discretionary retainer fee is usually commensurate to the foster carer’s loss of fee income, minus the payment level for the child, for a time-limed period.

If a child has moved due to safeguarding concerns and the managing allegations process is ongoing then, the foster carer(s) will receive: -

• 4 weeks’ pay, minus the child payment element;
• 2 weeks half of the fee minus the child payment element.

After this period then payments will cease

For further information, see Nottinghamshire Children’s Social Care Service Procedures Manual, Investigating Concerns and Allegations Against Foster Carers Including Historical Issues Procedure.

Disability Living Allowance (DLA) is a benefit paid to children and young people under 16 who have care or mobility needs as a result of a disability or ill health. DLA can only be claimed for children under 16- anyone over 16 must apply for Personal Independence Payment (PIP). DLA and PIP are both non-means-tested, tax-free benefits which you do not have to declare on your tax return

If a child is not already in receipt of DLA, upon the child's admission to foster care, a claim for DLA should always be considered, at the beginning of a foster placement, by the child's social worker in conjunction with the child's foster carer and supervising social worker.

If a decision is made to make a claim for DLA, the Child's social worker should obtain an application form by making a telephone call to the Disability Living Allowance Helpline on 0800 121 4600 (textphone: 0800 121 4523).

The child should have their own bank account into which the DLA should be paid. The foster carer(s) for the child should be named as the appointee for the account.

Advice about completion of a claim can be sought of the child's social worker.

The child's social worker and foster carer should agree as to the manner in which the DLA is to be spent. This Agreement should be formally recorded on the child's file and reviewed at regular intervals.

DLA should be spent by the foster carer in securing services and/or supports to meet the child's additional needs. DLA is intended to support everyday living. It can be spent on a range of activities and equipment to meet the child's additional needs. It can be spent on additional foster household expenses such as laundry and heating costs. It can be spent on replacing clothing, shoes, glasses etc if excessive wear and tear/destructive behaviour is indicated. Examples of hidden costs include additional wear and tear on domestic appliances e.g. washing machine, tumble drier, damage to property etc. DLA is not intended to be savings/investment plan for the child. DLA should be spent in the manner which it is intended. The Supervising social worker will from time to time discuss this with the foster carer within supervision meetings and foster carer reviews.

The child's bank statement details should be kept by the foster carer, along with records and details of expenditure. These records should be entered onto the child's file as a financial document, on a three-monthly basis by the child's social worker.

If a child is awarded DLA, this will have an impact on the child's eligibility for additional fostering allowances. The child's receipt of DLA will not affect the foster carer's receipt of the Regular Weekly Allowance.

If a child is awarded the highest rate of DLA, the child will not be eligible for consideration of additional fostering allowances, unless exceptional expenditure is indicated. Additional costs, arising from a child's dietary and clothing needs, household expenses, and excessive wear and tear on the home, medical/health needs, play/learning needs, social needs and educational needs should be met from the DLA.

If a child is awarded the middle or lower rate of DLA, the child's social worker and foster carer should determine the amount of weekly expenditure required to meet the child's additional needs. If a shortfall is identified between the DLA and projected costs, the difference should be considered for payment from an additional fostering allowance.

If a child is awarded the high to middle rate of DLA, the foster carer should be encouraged to make an application for Carer's Allowance (which is taxable).

If the foster carer is awarded Carer's Allowance, this will not affect any fees paid to the foster carer with the exception of Child Specific Fees. In such situations an amount, commensurate to the carer's receipt of the weekly Carer's Allowance, will be deducted from the payment of the weekly Child Specific Fee.

The supervising social worker is responsible for informing the service manager (fostering) of a foster carer's receipt of Carer's Allowance when a Child Specific Fee has been authorised.

The Service Manager for the Fostering Service will be responsible for the overview regarding the claims and use of DLA.

For further information please see - Nottinghamshire Children’s Social Care Service Procedures Manual, Disability Living Allowance – Fostered Children and Foster Carers Procedure.

Child-specific fostering is when we recruit or identify foster carers for children who are at risk of entering or who are stepping down from residential care. It can also occur when we identity a specific home with a foster carer to best meet a child’s needs. Some children may have had several moves and present with developmental trauma or complex support needs, requiring a nurturing home environment to support them to thrive. Experience of working with children and young people with complex emotional needs is desirable, although training and support is provided. Children are identified within regular meetings with representatives from looked after children, fostering and placements services, and specialist support services. Foster carers for these children receive a bespoke financial and support package to meet the specific needs of a child, which is set out in a formal contract. Allowances for child-specific fostering  starts at £629 per week, increasing dependent upon the age of the child. Foster carers will not usually receive additional allowances outside of the agreed package of support. A retainer allowance may be payable to foster carers when a transition plan has been agreed.

To support adoption introductions in a foster carers home, the fostering service will pay £20 per day (£10 for half a day) to cover expenses of refreshments and food provided to adopters when foster carers provide hospitality within their homes. If foster carers are involved in introductions outside of their home, then financial assistance will need to be agreed prior to this taking place.

Any agreed travel undertaken to support adoption introductions will be paid at the rate of 0.45p as stated in section 9 by the fostering service.

See Nottinghamshire Children’s Social Care Service Procedures Manual, Placement Planning Meetings and Introduction to Adoptive Parents Procedure for further information.