By Eternity Accountants Editorial Team · Reviewed by Shamayun Chowdhury, Senior Accountant · Published: 6 November 2026 · Last reviewed: November 2026 · Applies to the 2026/27 tax year
For 2026/27, England’s national minimum fostering allowance is £176 to £309 per child each week, set by the child’s age and your region. Many fostering services pay a fee as well. Most carers owe no tax on any of it, because qualifying care relief covers £20,440 a year plus £435 or £515 per child per week.
Anyone weighing up fostering will sensibly ask about money. Before taking a child into your home, it helps to know how much does fostering pay, and whether any of it goes to HMRC. There are really two answers: what lands in your account, and how little of it is normally taxed.
Below, we set out the 2026/27 minimum allowances, explain how fees and extra payments work, and use worked figures to show why qualifying care relief keeps most fostering income free of tax.
- In England, the 2026/27 minimum fostering allowance is between £176 and £309 a week for each child.
- Many services add a fee or reward payment, so real earnings usually sit above the minimum.
- Scotland, Wales and Northern Ireland each set their own allowance rates.
- Qualifying care relief makes the first £20,440 per household tax-free, plus weekly amounts for each child.
- You still need to register with HMRC as self-employed, even when no tax is owed.
- How much does fostering pay in 2026/27?
- How much does fostering pay on top of the allowance?
- Fostering pay in Scotland, Wales and Northern Ireland
- Is fostering income taxable?
- How much does fostering pay after tax? Worked examples
- Registering with HMRC and filing a return
- Common mistakes
- Frequently asked questions
- Final verdict
How Much Does Fostering Pay in 2026/27?
Every foster carer in England is entitled to at least the national minimum allowance. It exists to cover what a child costs day to day, including food, clothing, travel, activities and a share of household bills. The 2026/27 weekly minimums below come from GOV.UK’s help with the cost of fostering page.
| Child’s age | London | South East | Rest of England |
|---|---|---|---|
| 0 to 2 | £205 | £195 | £176 |
| 3 to 4 | £208 | £203 | £182 |
| 5 to 10 | £233 | £223 | £201 |
| 11 to 15 | £266 | £255 | £227 |
| 16 to 17 | £309 | £298 | £267 |
Minimum weekly allowance per child in England, 6 April 2026 to 5 April 2027. Source: GOV.UK, checked November 2026.
Treat these figures as a floor rather than a ceiling. When people ask how much does fostering pay, the minimum allowance is simply where the answer starts. Rates are reviewed each April, and the minimum ends once a young person reaches 18 and leaves care.
How Much Does Fostering Pay on Top of the Allowance?
Most fostering income comes in three parts: the allowance, a fee, and occasional one-off extras. It is worth separating them, because two carers fostering children of the same age can receive very different totals.
| Payment | What it covers | Who decides it |
|---|---|---|
| Fostering allowance | The child’s everyday costs | A government minimum, which services may exceed |
| Fee or reward payment | Your time, skills and experience as a carer | Each council or independent agency |
| One-off extras | Birthdays, holidays, festivals and school trips | Your fostering service’s own policy |
How much is a fostering allowance compared with a fee?
The allowance is tied to the child, which is why it increases with age and is higher in London and the South East. The fee is tied to you. GOV.UK confirms that carers can receive more than the minimum depending on the child’s needs, how many children are placed, the carer’s skills and the fostering service itself.
No national fee scale exists. Councils and independent fostering agencies each run their own schemes, often banded by skill level. Specialist work, such as parent-and-child placements, sibling groups or children with complex needs, usually pays more. Always ask a service for its written rates before applying.
What changes your fostering income?
Several factors decide how much does fostering pay in your own case:
- The child’s age, since older children attract a bigger allowance.
- Your location, with London and the South East paying the most.
- How many children live with you at once.
- The type of placement: short-term, long-term, respite, parent-and-child or specialist.
- Your training, experience and position on the service’s fee scale.
Are there gaps between placements?
Payments usually depend on having a child placed with you. A few services pay a retainer while you wait for the next placement, but many pay nothing in between. Budget on realistic placement levels instead of assuming every week will be paid.
Fostering Pay in Scotland, Wales and Northern Ireland
Where you live in the UK also shapes the answer to how much does fostering pay, because England’s minimum allowance does not apply everywhere.
- Scotland: the Scottish Recommended Allowance for 2026/27 is £177.68 a week for ages 0 to 4, £206.71 for ages 5 to 15 and £283.35 for ages 16 to 17. Kinship carers receive it too.
- Wales: the Welsh Government sets a separate national minimum allowance. Check current rates with Foster Wales or your local authority.
- Northern Ireland: the Department of Health publishes its own foster care allowance scale every year.
Qualifying care relief is a UK-wide Income Tax relief, so the tax rules in the next section apply wherever you foster.
Is Fostering Income Taxable?
Knowing how much does fostering pay only tells you half the story; tax tells you the rest. Fostering income counts as self-employed income, yet most carers pay nothing on it. The reason is qualifying care relief, which GOV.UK’s foster carer tax guidance describes as an exemption for the first £20,440 per household, plus weekly amounts for every child in your care.
The 2026/27 foster carer tax allowance
This relief is what most people mean by the foster carers tax allowance, sometimes called the HMRC fostering tax allowance.
| Part of the relief | 2025/26 | 2026/27 |
|---|---|---|
| Fixed amount per household | £19,690 | £20,440 |
| Per child under 11, per week | £415 | £435 |
| Per child aged 11 or over, per week | £495 | £515 |
Sources: HMRC Business Income Manual BIM52765 (2025/26), GOV.UK foster carer tax guidance and LITRG (2026/27), checked November 2026.
How the relief works
- Receipts at or under your limit: your profit counts as nil. No Income Tax or Class 4 National Insurance is due on fostering income, and expenses cannot be claimed.
- Receipts over your limit: you pick either the simplified method, where only the excess is taxed, or the normal method, where actual expenses are deducted from receipts.
- Two carers under one roof: the fixed amount is divided equally between you, as HMRC’s Business Income Manual (BIM52765) explains.
- Part weeks: any part of a week that a child spends with you counts as a whole week, and weeks start on a Monday.
How Much Does Fostering Pay After Tax? Worked Examples
Use these two cases as a simple foster carer tax calculator for your own figures.
Marcus fosters on his own in the Midlands, caring for an eight-year-old for 52 weeks of 2026/27. His service pays the £201 minimum allowance and a £250 weekly fee, giving him £23,452 over the year.
His qualifying amount is £20,440 plus 52 weeks at £435, a total of £43,060. Because his receipts fall well below that, his taxable fostering profit is nil. For Marcus, how much does fostering pay after tax comes to the full £23,452.
Rhiannon fosters alone and has one nine-year-old on a specialist placement paying £1,000 a week, or £52,000 across 52 weeks. Her qualifying amount is also £43,060.
Under the simplified method, the £8,940 excess is taxed as self-employed profit along with any other income she has. If her genuine fostering costs topped £43,060, the normal method using actual expenses could produce a lower figure. For Rhiannon, how much does fostering pay after tax depends on that choice and on her other income.
Both examples assume 52 full weeks to keep the maths simple. Your own result depends on the weeks each child actually lives with you.
Registering With HMRC and Filing a Return
Even when no tax is owed, GOV.UK advises registering as self-employed as soon as you start fostering. After that, you file a Self Assessment return every year showing your receipts and the relief you are claiming.
- Register as self-employed when your first placement begins.
- Record every payment and the weeks each child lived with you.
- Calculate your qualifying amount: your share of £20,440 plus the weekly amounts.
- File your return by 31 January following the end of the tax year.
- If receipts go over the limit, choose the simplified or normal method for that year.
While receipts stay within the limit, your fostering profit is nil, so no self-employed National Insurance is due on it. GOV.UK points out that foster carers may qualify for National Insurance credits, which help protect your State Pension record.
In practice, foster carers often ask us how much does fostering pay once HMRC has taken its share, and for most the answer is all of it. Where issues arise, it is usually other income: a part-time job, rent or a side business still has to be declared. A simple weekly placement log is the record HMRC asks for if it ever checks your relief.
Common Mistakes
Carers who know exactly how much does fostering pay can still slip up on the tax side.
| Mistake | What happens |
|---|---|
| Skipping registration because no tax is due | If HMRC requests a return and it arrives late, a penalty can apply even with no tax to pay |
| Both carers in one home using the full £20,440 | Relief overstated, because the fixed amount is split equally |
| Keeping the under-11 rate after an 11th birthday | Relief understated, as the higher weekly rate applies from age 11 |
| Treating the fee as separate taxable income | Tax overpaid, since fees are qualifying care receipts too |
Our sole trader accountants and Self Assessment tax return service can prepare your return and claim qualifying care relief correctly.
Frequently Asked Questions
How much does fostering pay per week in the UK?
For 2026/27, England’s minimum allowance is £176 to £309 per child per week, depending on age and region. In Scotland, the recommended allowance runs from £177.68 to £283.35. Many services pay a fee on top, so total weekly pay is often higher than the minimum.
How much does fostering pay for a teenager?
In England, the 2026/27 minimum for a child aged 11 to 15 is £227 to £266 a week, and £267 to £309 for ages 16 to 17. The weekly tax relief for any child aged 11 or over is £515, so most teenage placements remain tax-free.
Is fostering tax free?
For most carers, effectively yes. In 2026/27, qualifying care relief makes the first £20,440 per household tax-free, plus £435 a week per child under 11 and £515 per child aged 11 or over. Only receipts above that total can be taxed.
Are foster carers self-employed?
Yes. HMRC treats foster carers as self-employed, so register when you start and file a Self Assessment return every year, even if qualifying care relief means you owe nothing.
Do independent agencies pay more than councils?
No national rule decides this. Each council and agency sets its own fees above the minimum allowance. Compare written rates, the support offered and how often placements are made before choosing a service.
Is the foster carer tax allowance shared between couples?
Yes. When two carers foster from the same home, the £20,440 fixed amount is split equally between them. Each carer then adds the weekly amounts that apply, so check HMRC’s HS236 helpsheet or ask an accountant if you share placements.
Do I get paid between placements?
That depends on your fostering service. Some pay a retainer between placements, while many only pay when a child is living with you. Get the answer in writing before you sign up.
Final Verdict: How Much Does Fostering Pay, and What Do You Keep?
So, how much does fostering pay? In England, at least £176 to £309 per child per week in 2026/27, often with a fee on top. Thanks to qualifying care relief, most carers keep every penny, but you still need to register with HMRC and file a return each year.
- Ask every fostering service you are considering for its written allowance and fee rates.
- Work out your qualifying amount with the 2026/27 figures above.
- See our fixed-fee pricing, or call 0116 4030595 or email info@eternityaccountants.co.uk for help with your return.
✓ Qualifying care relief worked out for you
✓ Self Assessment registration and filing handled
Why trust this guide
- Written by the Eternity Accountants Editorial Team and reviewed by a chartered management accountant (ACMA, MAAT) with more than 15 years’ UK practice experience.
- Allowances and relief figures checked against GOV.UK, gov.scot and HMRC’s Business Income Manual for 2026/27.
- Covers single carers, couples and specialist placements.
- Last reviewed: November 2026.
