Fostering

Fostering Allowances

In April 2003 a new tax relief was introduced for foster carers. The relief consists of two elements:

Foster carers whose gross receipts from foster care do not exceed an individual limit in a year will be exempt from tax on their income from foster care; and
Foster carers whose gross receipts from foster care exceed the individual limit will be able to choose an optional, simplified method of calculating their profits instead of using the normal rules.

Further information on all matters relating to tax can be viewed on the Inland Revenue’s website at www.hmrc.gov.uk/home.htm

In Northern Ireland the Trusts pay fostering allowances (which are agreed each year in consultation with the 4 Health and Social Services Boards). The standard rates are known as the "Model Scheme". The Model Scheme currently offers allowances for fostering as follows:-

FOSTER CARE ALLOWANCES

SCALE RATES

From 1st April 2006

Age Group	Per Week	Per 4 Weeks	Per Annum
0-4	£ 95.11	£ 380.44	£ 4,945.72
5-10	£ 100.54	£ 402.16	£ 5,228.08
11-15	£ 116.47	£ 465.88	£ 6,056.44
16+	£ 134.89	£ 539.56	£ 7,014.28

Please note these allowances include provision for the following:

Food (including school meals) 40%
Household costs 25%
Clothing and footwear 18%
Pocket money 10%
Travel cost 7%

Foster carers are free to spend food, household and travel allowances as they feel benefits the child most.

When a child moves from one foster home to another then both sets of foster carers should receive the appropriate allowance for the day on which the move took place.

For every foster placement a minimum payment of 3/7 of the appropriate weekly rate will be paid for each placement.

N.B. When a child is initially placed, part of the appropriate allowances will be paid in advance if necessary. Any such advance will be deducted from the next payment.

For the calculation of Enhanced Allowances and Respite Payments a reduced rate will be applied, which will be the Scale Allowance less the components for pocket money and clothing and footwear (see below).

REDUCED RATES

Age Group	Per Week	Per 4 Weeks	Per Annum
0-4	£ 68.46	£ 273.84	£ 3,559.92
5-10	£ 72.38	£ 289.52	£ 3,763.76
11-15	£ 83.86	£ 335.44	£ 4,360.72
16+	£ 99.54	£ 398.16	£ 5,176.08

EXTRA ALLOWANCES

There are four types of extra allowances:-

Automatic
Full cost
Up to a maximum
Exceptional circumstances

Automatic

Holidays and Outings
3 x weekly scale rate paid in 13 equal amounts and includes regular payment to the main carer.
Birthday
1/2 times the weekly scale rate, paid in the payment period prior to the birthday, to the foster parent identified by the Social Worker.
Christmas
1 1/2 times the weekly scale rate to be received in the last payment in November to the foster parent identified by the Social Worker.
Retaining Fee
£24.85 up to a maximum of 12 weeks where it is the intention to use the foster home and there are no other foster children in the home.
Disposable Nappies
24 hours - £45.92
Night time only - £22.96 every 4 weeks
More than one Child
£6.58 per week - second child
£13.23 per week - each subsequent child

N.B. Foster carers are fostering for more than one Unit of management/Trust they should ensure that each Finance Department is aware of:

The number of children placed.
Which Unit of Management/Trust placed the child/children.
When the children were placed.

Currently the computer information system does not automatically pick up extra children placed from other Units of Management/Trusts.

Full Cost

Foster carers must apply for these allowances as and when required and with application the need must be demonstrated. The full cost will be paid.

School Activities
Items required by school for school attendance/activities, e.g. uniform, sports clothing, footwear.
Educational Holidays
For P7 and secondary pupils. A maximum of two such holidays during school life.
Tuition and Special Activity Fee
Payment of these fees where it is thought to be in the best interest of the child, including University.
Setting up Costs
Initial cost of setting up a placement, e.g. bed, cots, toys, bedding, furniture. The cost of maintenance and replacement can also be met. Any equipment purchased is on loan from the Unit or Management/Trust and should be returned once the foster carers cease to foster permanently.
Spectacles
When a foster child requires spectacles and wishes to obtain these outside the range available under the NHS. When new spectacles are required the cost will be met.

Contact lenses can be considered when this has been recommended by the optician.
Mileage
When foster carers used their own car to:-
(a) enable contact to be maintained between the foster child, his parents, siblings and extended family
(b) attend meetings to review the progress of the child and plan for his future
(c) attend training courses
(d) take a foster child to out-patient facilities
(e) take a foster child to or from respite care in accordance with care plan
(f) take a foster child to school or other educational establishment

They should be reimbursed at a rate of 40p per mile

Up To a Maximum

Foster carers must apply and Units of Management/Trusts have discretion to decide on the amount of the allowance within the maximum specified to meet the demonstrated need.

Initial Clothing and Footwear
Up to a maximum of 6 times the weekly scale allowance.
Final Clothing Grant
Up to a maximum of 3 times the weekly scale allowance. This may be payable at discharge from care. This should not be confused with any 'leaving care' grant which may be paid to enable the young person to establish a home.
Personal Items
Up to a maximum of 4 times the weekly scale allowance, e.g. bicycles, musical instruments, extra toys.
Absence from Foster Home
In a situation where as part of an agreed care plan:-
A placement is being kept open for a child who is absent from the home for whatever reason, i.e. hospital, residential care, or in a situation where a foster child has absconded and the intention is to maintain the placement, then the scale allowance for that child will be paid up to 4 weeks. This can be extended by negotiation.
when respite has been arranged between two foster carers the following payments will be made:-

Main carers
Scale allowance
Respite carers
Reduced allowance

For each placement there will be a minimum payment of 3/7 of this allowance.

5. Cultural Events
Financial assistance may be given towards the cost of clothing up to a maximum of £111.00

Exceptional Circumstances

In certain circumstances, payment of reasonable expenses incurred by a foster child outside the above range may be negotiated if:-

it is part of a care plan; and
it is to meet extra special needs.

ENHANCED ALLOWANCES FOR CHILDREN WITH SPECIAL NEEDS

For example, emotionally disturbed, children or children with disabilities.

Assessments, using the standard application forms, have to be completed for these allowances. Foster carers who receive enhanced allowances are responsible for declaring these to the Inspector of Taxes for their area.

The payment of an enhanced allowance is to cater for the child's special needs. Consequently any % enhanced rate will be paid to the foster parent who has care of the child. In respite situations (see Section 2.3 (iv) (b)) the % enhancement will apply to the reduced rates and will be paid to the respite carer. The main carer will receive the scale (i.e. un-enhanced) rates.

FOSTER CHILDREN OF WORKING AGE

If a young person is 16 or over and is in full time education, carers will receive allowances as set out in the scale rates.
If a young person of 16 or over is not in full time education and is in receipt of an income of any kind, then that young person may be expected to make a contribution towards their maintenance. The level of contribution is to be agreed between the young person, their foster carer and social worker and verified at a Looked After Child Review.

The carer will continue to receive the age appropriate fostering allowance plus any enhancements less the agreed amount of contribution to be made by the young person.
If the young person starts to receive an income of any kind, it is important that the young person’s social worker is informed of this immediately.

There is an exception that foster carers will allow and encourage young people to manage some of their own finances. Carers may wish to give young people an element of the fostering allowance e.g. for clothing and pocket money. Where this is not appropriate, the reasons should be clear. Financial arrangements should avoid any disincentive to take employment. Young people should also be encouraged to put some money into savings.

APPENDIX 1

LIST OF STANDARD EQUIPMENT FOR FOSTER PARENTS

The Social Services Department has the responsibility to provide essential equipment which may be needed when children are placed in foster care, and it not otherwise available in the foster home. Such items of equipment might include:

Cot or bed
Bedding
Pillows
Bedroom Furniture
Pram / Pushchair / Buggy
Highchair
Fireguard
Playpen
Baby Equipment
Safety Equipment
Car Seat or Harness
Toys
Household Equipment