At DMR Fostering Services, our foster carer payments reflect our passion for providing high quality foster carer for some of our societies most vulnerable children. Our foster carer payments are higher than many other private fostering agencies; simply because we want to attract genuine, caring individuals and couples who really wish to make a positive difference.
We believe our foster carers should be rewarded for their hard work, and dedication to changing a child’s life for the better. The amount we pay our foster carers depends on a few things including their skills, experience, the placement type, and the assessed needs of the child.
Foster carers are treated as self-employed for tax purposes on foster carer payments. Many of our foster carers pay little, or no tax at all on their income from a foster carer payment. Currently there is a fixed tax exemption of up to £10,000 per year, shared equally among the foster carers in the same household. In addition to this, foster carers also receive tax relief for every week a child is in care. For a child under the age of 11, the tax relief amount is £200 per week; and over the age of 11, the tax relief is £250 per week. It may sound complicated, but here’s a handy example. Just in case you do find yourself a little confused, we’ve teamed up with a local accountancy organisation who will be able to answer any of your questions.
Here’s an an example:
Daljeet is a foster carer of an 13 year old for the whole of the year, and for an 9 year old for 10 weeks of the year. He doesn’t have to pay tax on the first £25,000 he earns. Here’s why: Tax exemption: £10,000 + Child 1 (52 x £250) = £13,000 + Child 2 (10 x £200) = £2,000. Total = £25,000 tax exception on fostering earnings.
Will my foster carer payment always be the same?
No. Foster carer payments are relative to a number of different things. When deciding on how much we pay our carers, we first consider their skills, experience, the type of fostering placement, the age of the child, and their assessed needs.
Do foster carers receive a foster carer payment in between fostering placements?
Fosters carers receive a foster carer payment throughout a placement. We do not pay foster carer payments in between placements, however; we aim to have as little time between placements as possible, should you want this.
Why do foster carers usually not pay any tax?
Foster carers receive a fixed tax exemption on their foster carer payment amount. In addition to this, they also receive tax relief. An example of this is shown above in the foster carers payments and tax section of this page. This is why many of our foster carers do not pay any tax at all on their foster carer payments.
Can foster carers claim benefits?
Your foster carer payments will not affect the amount of benefit you get. Our fostering team will be more than happy to discuss this with you further. Just call them on 0121 352 1844.
