Allowances & payments

Allowances & payments

Our foster carers are rewarded for what they do
How much money could you receive as a foster carer with Fife Council?

If you are considering fostering a child or young person, it's important to consider the financial implications.

In Fife, foster carers receive a weekly allowance for themselves and a weekly maintenance payment to cover the expense of looking after the child. This payment varies depending on the age of the child. In addition the Scottish Government offers generous tax allowances which mean the majority of foster carers pay no tax.

Our foster carer fees start from £289.02 per week, rising to £447.03 per week after one full year, subject to carers meeting the required standards and having appropriate experience.

Here are some examples combining weekly allowances and maintenance payments:

First year

One child (8-15 years old) :-
up to £27,224.93 annually

After first year

One child (8-15 years old):-
up to £35,441.41 annually

Ages Rates
0-4 £177.68
5-10 £206.71
11-15 £206.71
16-18 £283.30

Summer = 2 weeks maintenance Easter = 1 weeks maintenance
October = 1 week maintenance Birthday = 1 week maintenance
Christmas = 2 weeks maintenance

Fees per year
Rates
First year
£289.02
After one full year
£447.03

£50 per week

Short break carers

Short break foster carers offering respite placements are paid one day’s fee and one day’s maintenance allowance for each full night of placement.

Foster carers who offer short break placements in addition to full time placements are paid one day’s maintenance allowance for each full night of placement.

Tax relief for Foster Carers

Most Foster Carers do not pay tax on their fostering income due to a scheme called Qualifying Care Relief.

  • Fee - Up to £20,440 per household, per year tax‑free
  • Allowance -  plus weekly tax relief for each child placed:
    • £435 per week (under 11)
    • £515 per week (11 or over)
Important: These figures are tax allowances — not extra payments. They show how much of your fostering income can be tax‑free, not additional money on top of your fostering fees.


Example:

Laura fosters a 14‑year‑old all year and an 8‑year‑old for 10 weeks. Her total tax‑free amount is £51,570, so she pays no tax on her fostering payments.

For full details and to check individual circumstances, carers are directed to the UK Government website:https://www.gov.uk/support-for-foster-parents/tax-arrangements

The Fostering Network also have lots of information and FAQs about tax and National Insurance for foster carers, which are also very helpful: Tax and National Insurance for Foster Carers | Financial Guidance | The Fostering Network