Tax Relief & Financial Support for Foster Carers – Oakwood Fostering Website design

At Oakwood Fostering, we are proud to offer a generous fee to all our foster carers in recognition of the vital role they play in transforming children’s lives. We value the experience and commitment of transferring foster carers and as such, we guarantee to match at a minimum the fostering fee you currently receive when you join Oakwood Fostering. Your dedication deserves to be rewarded and we’re committed to supporting you every step of the way.

Fostering Allowances are generally Tax-Free

One of the major financial benefits of fostering with Oakwood Fostering is that most of your fostering income is tax-free. This is due to the government’s generous tax relief scheme designed specifically for foster carers. Under this system, called Qualifying Care Relief most foster parents do not have to pay any income tax on the fostering allowance they receive. This tax exemption is a way of recognising the valuable role foster carers play in society, supporting them to continue their work without unnecessary financial strain.

Factors that may affect your tax status

While most foster parents won’t pay tax, certain factors can influence your tax situation:

The number of children you foster – More children mean more weekly relief.
Enhanced allowances – Some placements, like those for children with complex needs, parent and child placements, or solo placements, may come with higher payments.
Joint carers – If you share the fostering role with a partner, the tax exemption can be split between you.
Additional income – If you have another job, self-employment, or rental income, your overall income might affect how your tax is calculated.

Our team can advise on your individual situation – get in touch today