Fostering is a calling that anyone in a position to should answer, considering that there is currently a great need for homes for foster children. When you decide to become a foster carer, one of the first questions you will have is in regards to the financial support you will get when you foster. Being a full-time engagement, there are various options for the financial support foster carers receive.
Fostering Allowances
By far the most common type of financial support is fostering allowances. These are paid by a fostering agency, and they are meant to help with the cost of fostering. There is also an amount that goes to the foster carer for their commitment and work.
The fostering allowance is meant to pay for things like clothes, school supplies and the various activities and interests your child engages in. A foster carer is also allowed to use this allowance to pay for any other things they need.
Many factors influence how much fostering allowance you get. These include your skills and experience, if the child in care has special needs, their age, the fostering agency you use, and where you live.
The fostering allowance also includes a professional fee for the carer which makes fostering a viable choice for many. The package will depend on the agency you use, with agencies like Orange Grove Foster Care providing a generous allowance package. You can learn more about their fostering allowances at Orangegrovefostercare.co.uk where you can also read about the fostering process.
Tax Arrangements for Foster Carers
Although it is not a direct payment, the government also supports foster carers by having a favourable tax arrangement for them. Every foster parent is expected to register with the government as self-employed and file tax returns.
Once you start doing this, you are entitled to care relief. This means foster carers do not pay tax on the first £10,000 they make from fostering. They are also entitled to qualifying care relief where they receive tax relief for every week they foster a child. Tax relief means that a foster parent also does not pay tax on some money above the stated threshold.
Benefits
Being a foster carer can affect the benefits you are entitled to. If you are eligible for any benefits, which you can confirm on the government’s website, you need to talk to the organisation or agency you are working with and tell them that you are receiving additional benefits. The organisation or agency will tell you how your benefits will change when you start fostering.
Other Types of Support
In addition to financial support, the government and agency you are working with will provide other types of support. This is usually in the form of training so you can become a better foster carer. The skills you learn can also come in handy, especially if you work with an organisation that considers skills when deciding your fostering allowance and package.
Foster parents have a lot of financial support from both the organisation they work with and the government. This can be direct in the case of the agency and indirect in the case of the government, but they all help in ensuring you have the finances to care for the children in your care and yourself.
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