Fostering allowances and fees

As a Luton foster carer you would receive:

• a weekly allowance for each child or young person that they look after
• a weekly skills payment, based on your experience as a foster carer for each child or young person you look after
• additional allowances for each child or your person you look after, such as for holidays, birthdays and festivals
• an annual leave payment for yourself, twice per year summer and winter
• a yearly Council Tax contribution

Child and young person allowance

Based on the age of the child you are looking after:

• 0 to 2 years: £189
• 3 to 4 years: £196
• 5 to 10 years: £216
• 11 to 15 years: £257.74
• 16 to 17 years: £288

Within the child or young person allowance, £5 weekly would be saved at source by Luton Council for the child or young person’s long term savings and as a carer you would save £5 weekly for the child or young person’s short term savings.

Professional fees for skills

Based on your experience as a foster carer:

• first year of fostering with Luton: £145.90
• second to fourth year of fostering with Luton: £202.77
• after five years of fostering with Luton: £259.13

Additional allowances

Birthday:

• 0 to 10 years: £100
• 11 to 18 years: £150

Festive:

• 0 to 10 years: £100
• 11 to 18 years: £150

Holiday:

• 0 to 18 years: £400

School uniform or clothing:

• 0 to 10 years: £125
• 11 to 15 years: £180
• 15 to 18 years: £250

Foster Carer annual leave

Professional fee for holiday allowance is:

• first year is: £132.65
• second to fourth year is: £183.61
• fifth year is: £234.64

These are due twice a year, summer and winter.

Council Tax contribution

Foster carers with Luton who are looking after a child or young person at the start of the Council Tax year (1 April), will receive a £1,000 contribution to their Council Tax bill.

This is paid regardless of where the foster carer lives and pays their Council Tax to. Pro rata payments are also considered for any carers who may not be approved or be looking after a child or young person as of 1 April.

Tax and National Insurance arrangements for foster carers

Foster carers are considered as self-employed for tax purposes, it is important that you register as self employed when you begin your fostering journey.

You may not need to pay tax due to Qualifying Tax Relief. Qualifying Care Relief allows foster carers to receive payments from their fostering service up to their tax threshold without being liable to pay tax.

For further information read about help and support for foster parents on GOV.UK.

Contact us

If you have a query about fostering and would like to learn more:

Fostering team
Email: fostering@luton.gov.uk
Telephone: 01582 547633, Monday to Friday, 9am to 4.30pm.

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