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Fostering information

In this section:

Fostering allowances and financial support
Types of fostering
Kinship care
Who can foster
How to apply and transfer to us
Tax, benefits and Council Tax relief
Fostering events
Fostering videos and testimonials
Fostering support and guidance
Fostering policies and procedures
Family finding

Tax and the HMRC

All foster carers are required to register as self-employed with HMRC. This can be done online or by phone. Advice and guidance on how to do this can be provided by The Fostering Network, which we will signpost you to. For the majority of foster carers, the allowance you receive from us will be tax free and will not impact on any benefits you claim.

More information can be provided to you by the fostering team.

For further information please visit the government Tax arrangements page.

Qualifying Care Relief (QCR)

Foster carers can benefit from Qualifying Care Relief (QCR), which allows them to receive certain payments tax-free. This relief is available for carers who look after children placed with them by their local authority.

The qualifying amount is made up of two parts: a fixed amount and a proportion based on the number of carers in the household. For the tax year 2026 to 2027, the fixed amount is £19,690, and carers can only use a proportion if they care for a child for less than a year. The qualifying amount is calculated based on the total number of weekly payments received.

For further information please visit the government Tax Free Allowance page.

Council Tax rebate

We recognise the dedication of foster families through this scheme and it’s our thank you to you. Council Tax is worked out by day, and the relief will be applied to each day you meet the eligibility criteria. Foster carers will be exempt from some or all of the their Council Tax liability subject to meeting set criteria.

Mainstream carers who meet the criteria will receive 100% relief.

Short breaks carers who meet the relevant criteria will receive 25% relief.

Third and fourth child – when foster carers support more than two children, they will receive an extra payment of £10 a week for child three and four on top of the weekly allowance.