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Payments and tax

Picture of a girl with a sunflower

Allowances

There are a range of different payments and Croydon has recently increased what it pays to ensure that our offer is competitive when compared to other boroughs and independent agencies. The level at which the carer will be paid, will be decided at the time of placement.

Level 1 Standard

Carers on this level will be paid at the standard allowance, which will normally apply when children are not presenting with particular difficulties that require special care and attention. Therefore, for the majority of children in our care, the standard allowance will be seen as the most appropriate.

Level 2 Supplementary

Carers on this level will be paid the supplementary allowance, which will normally apply when children have experienced extremely damaging and abusive care resulting in additional resources being involved in their lives, such as those of the Child and Adolescent Mental Health Service. This will also apply for children of any age with severe learning difficulties or physical disability. Carers receiving this allowance will be reviewed on a six-monthly basis and, once the child's behaviour/circumstances have improved, the allowance being paid will be reduced to the standard allowance.

Table showing the allowances paid according to the age of the child
Age band Category Standard / supplementary
weekly allowances
0-4 Level 1 standard £338.30
Level 2 supplementary £381.41
5-10 Level 1standard £338.30
Level 2 supplementary £409.41
11-15 Level 1 standard £338.30
Level 2 supplementary £470.11
16-18 Level 1 standard £414.77
Level 2 supplementary £503.73

Taxation

Income from fostering is treated separately from any other income you may have.

The Inland Revenue gives each fostering household an annual pre-tax allowance of £10,000 per annum (£192.30 per week) and then an additional allowance (also pre-tax) of £200 per week for each child up to 10 years of age and £250 per week for children aged 11 and over.

This is all calculated on the total number of weeks that you foster a child for in any tax year.

So if you had a seven year-old child with you for 40 weeks then your allowance would be calculated as follows:

40 x £192.30 = £7,692
40 x £200 = £8,000
Total pre-tax allowance = £15, 692

Your earnings over this time from fostering allowances for a child with standard needs would be £13,532 (40 weeks at £338.30), meaning that you would be under your tax allowance threshold and as a result you would not have to pay anything to the Inland Revenue.

We'd love to hear from you, use the contact details below to get in touch.

Contact Details

Fostering Recruitment and Assessment Team
Telephone 020 8726 6400 ext 64025
Freephone 0800 389 0129
Email fosteringenquiries@croydon.gov.uk
Address 7th floor
Jeanette Wallace House
1 Edridge Road
Croydon
CR0 1FE

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