Foster carers are approved rather than employed by their fostering service, and this status has a particular effect on means tested benefits. In the main, fostering payments when a child is placed with a foster carer are disregarded when calculating welfare benefits. Alternatively, foster carers may be able to claim Working Tax Credit because fostering is regarded as ‘work’ by HMRC when they have a child in placement. However, it is also important to also remember that the benefit system can often change at short notice.
Additional information in regard to Tax and Benefits can be found on the Fostering Network website in the finance section or by calling 020 7620 6400
If foster carers are still unsure about any of the above, they should speak to their fostering social worker.