Fostering Finances Uncovered: How Foster Carer Pay Really Works 

One of the first concerns anyone has when they start thinking about fostering is the money. 

They want to know if, when and how much foster parents get paid. They want to know if the money people earn as foster carers is stable enough to live on. And they want to know if they’ll be left without any sort of income if a placement suddenly ends. 

These are sensible questions. For many households, fostering becomes a professional commitment that replaces a traditional job. Understanding how the finances work is therefore an important part of deciding whether fostering is right for you and your family. 

At the same time, many people say they feel slightly uncomfortable raising the topic. Fostering is about helping children who need stability and care, so conversations about money can sometimes feel awkward. 

In reality, financial clarity matters. Knowing how fostering income works and what support is available helps prospective foster parents make informed decisions. 

To help explain this clearly, Mosaic Foster Care is hosting a free online session: Fostering Finances Uncovered: What You Really Need to Know on Thursday March 26 from 2–3pm.  

The webinar will walk through how fostering finances work and answer the practical questions people often have when they first begin exploring fostering. 

How fostering pay is structured 

Across the UK, fostering income usually has two main elements. 

The first is the allowance, which covers the everyday costs of caring for a child. This includes essentials such as food, clothing, school items, travel and activities. 

The second is the professional fee, which recognises the time, responsibility and skill involved in fostering. Caring for a child who may have experienced trauma or instability requires commitment and emotional availability and the professional fee reflects this. 

Different fostering agencies present these payments in different ways. Some show the allowance and fee separately, while others combine them into a single weekly payment. At Mosaic Foster Care, the two are combined into one clear weekly payment to make the structure simple and transparent. 

We will explain this structure in more detail during the Fostering Finances Uncovered webinar, including how different agencies present payments and what prospective carers should look out for when comparing options. 

Why comparing fostering agencies can be confusing 

When researching fostering, many people notice that weekly payment figures can vary significantly between agencies. 

However, headline figures rarely tell the full story. 

While the government sets a minimum fostering allowance, there is no national standard for the professional fee paid to foster carers. Agencies and local authorities therefore structure their payments differently. 

Support packages can also vary widely. Some agencies include therapy, training and additional support within their overall offer, while others structure these services differently. 

Because of this, comparing fostering agencies is not straightforward. It is important to look not only at the weekly payment but also at what is included and how placements are typically structured. 

During our webinar we will talk through the key questions prospective carers should ask when comparing agencies, including how support and payments are structured. 

How Mosaic Foster Care supports financial stability 

At Mosaic Foster Care, fostering is recognised as a professional role that requires stability, commitment and strong support. 

Foster parents receive a minimum payment of £600 per week, which increases to £700 or more once Training Support and Development Standards are completed. Where appropriate, foster parents caring for more than one child receive a full fee for each child. 

However, weekly payments paint only one part of the financial picture. 

One of the biggest factors affecting income stability is placement stability. Some types of fostering involve shorter placements, which can sometimes create gaps between children moving in and out of a home. 

Mosaic focuses on long-term fostering placements, where children often remain with the same family for years rather than months. This approach provides greater stability for both children and foster parents. 

In 2024, 92% of Mosaic placements remained stable throughout the year, compared with a national average of around 69%. 

If a placement does end after six months or more, Mosaic also provides a retainer payment of £250 per week for up to four weeks while the next placement is carefully matched. 

Tax and additional financial support 

Another aspect of fostering finances that many people are surprised to learn about is the way fostering income is treated for tax purposes. 

Most fostering income falls under the UK’s Qualifying Care Relief scheme. This framework provides a £10,000 annual allowance, along with additional weekly allowances per child in care. In many cases this means foster carers pay little or no income tax on their fostering income. 

Beyond weekly payments and tax allowances, Mosaic foster parents also receive additional financial support designed to make fostering sustainable. 

This includes paid supportive foster care of up to three weeks per year, mileage payments for travel related to fostering responsibilities and fully funded therapy and professional training. 

These elements are an important part of the overall financial picture and help ensure foster parents feel supported in their role. 

Join our Fostering Finances Uncovered webinar 

Understanding the financial side of fostering can make a significant difference when deciding whether fostering could work for your household. 

That is why Mosaic Foster Care is hosting Fostering Finances Uncovered: What You Really Need to Know, a free online session designed to provide clear answers to the most common financial questions about fostering. 

During the session we will explain how fostering pay is structured, what financial support foster carers receive and what happens financially between placements. There will also be an opportunity to ask questions during the webinar. 

Webinar details 

📅 Thursday March 26 2026 
⏰ 2:00–3:00pm 
🌐 Online 

You can reserve your place here: 
Register for the webinar

About Mosaic Foster Care 

Mosaic Foster Care is an independent fostering agency providing Ofsted Outstanding rated therapeutic foster care across Essex, Suffolk, Bedfordshire including Milton Keynes, Hertfordshire, North Kent, Northamptonshire and Worcestershire. Our mission is to ensure every child in our care thrives in a stable, nurturing home. We achieve this by providing long-term foster placements and by carefully matching children and foster parents. 

We keep caseloads small and embed in-house professionally delivered therapy and youth support into everyday practice so no child is ever left waiting for the critical support they need. Foster parents receive more than £700 per week after training and benefit from ongoing professional development and a community that truly understands the rewards and challenges of fostering.