If you’re thinking about becoming a foster carer in Wales, or you’re already approved and want to understand your income better, it’s important to know how foster fees in Wales are structured. While most people foster to make a difference, it’s still important to know what kind of financial support you’ll receive — especially if you’re looking after children and young people on a full-time basis.
This guide breaks down how fostering payments work, what affects the amount foster carers receive, and how it all fits into the wider fostering role. Whether you’re working with your local authority, one of the many fostering agencies, or the local foster wales team, understanding the structure of foster care funding is essential for planning your future and providing the best possible support for the foster child in your care.
Allowances vs. Fees: What’s the Difference?
As a foster parent, you usually receive two types of fostering payments:
- Fostering allowance – This covers the everyday costs of caring for a child, such as clothing, food, transport, school expenses, and activities. It’s calculated weekly depending on the child’s age, and it’s designed to ensure that foster families can meet the practical needs of the child.
- Fostering fee – This is your professional fee for the time, effort, and emotional commitment you offer as a foster carer. It acknowledges the specialist care you provide and is a key part of your total fostering income.
Both payments are essential. The fostering allowance ensures that the foster child receives everything they need for a stable and healthy life. The fostering fee recognises the experience, time, and dedication dedicated foster carers bring to the role.
These payments help create better futures for local children by enabling foster carers to focus on building a safe, nurturing environment. Whether you’re caring for your first child or adding to your experience, understanding these payments will support your ability to plan long-term, especially if you’re considering fostering as your main source of income.
The structure is guided by the Welsh Government and applies to local authority foster carers and those working with approved agencies. These payments may also influence your entitlement to universal credit, working tax credit, or child tax credit, so it’s a good idea to seek expert advice if you’re unsure how your self-employment status might affect your tax or benefits.
2025 Foster Allowances in Wales
Each year, the Welsh Government reviews and sets the minimum rates of financial support for local authority foster carers. These payments help cover the everyday costs associated with fostering a child, and they vary based on the child’s age.
Here are the minimum weekly allowances for 2025:
- Age 0–4: £203 per week
- Age 5–10: £226 per week
- Age 11–15: £280 per week
- Age 16–17: £330 per week
These standard rates apply to all local authority foster carers in Wales. Fostering agencies may offer enhanced rates, additional support, or financial incentives to reflect the needs of particular children or the experience level of the carer. In some cases, carers working with foster wales teams may be eligible for top-up payments based on specialist training, placement type, or child behaviour needs.
It’s important to remember that these allowances are there to support the foster child’s life and provide a good quality of care. They help you manage school expenses, meals, travel, leisure activities, and other essentials, ensuring that children and young people receive the consistent support they deserve.
What Affects the Amount Foster Carers Receive?
While the minimum fostering allowance is based on the child’s age, the total amount you receive as a foster carer depends on several factors:
- Child’s age – Older children typically have higher needs and attract a larger allowance.
- Type of placement – For example, emergency placements, long-term fostering, or parent-and-child placements each come with different payment structures.
- Fostering income level – If you care for more than one child or accept complex placements, your fostering income may be higher.
- Ongoing training – Dedicated foster carers who complete additional training or qualifications may be eligible for extra fees or bonuses.
- Fostering agencies vs. local authority – There are differences in payment depending on who you foster through. Some fostering agencies offer higher fees and more tailored support, while local authority foster teams may provide structured packages with additional services.
For example, a foster carer in Cardiff caring for two siblings aged 6 and 13 could receive over £500 per week depending on their agency or local authority, the children’s needs, and any extra support provided.
Understanding these variables allows foster families to better plan and feel confident that they’re being fairly supported for their time, care, and the emotional investment they make in helping young people build brighter futures.
Weekly Payment Summary (Minimum Allowances)
To help you quickly assess what to expect, here’s a breakdown of the fostering allowance based on child’s age:
- 0–4 years: £203 per week
- 5–10 years: £226 per week
- 11–15 years: £280 per week
- 16–17 years: £330 per week
This allowance is designed to support all essential costs for the foster child, including food, clothing, school trips, toiletries, and daily travel. It’s there to help you provide a nurturing environment where the child can feel safe and supported. Your social worker can help you plan for additional needs, such as birthday gifts, technology, or activity fees. Some local authority foster carers may also receive funding for things like free entry to leisure centres or educational resources during school holidays.
How Placement Type Affects Payment
Not all fostering placements are the same — and payments reflect that. Here’s how different placements may impact your fostering income:
- Short-term care – Usually paid at the standard rate; ideal for transitional care.
- Long-term placements – May come with higher or more stable financial support, especially when caring for older children or children with ongoing needs.
- Emergency or parent-and-child placements – Often offer enhanced fees to reflect the urgent or complex nature of the placement.
- Therapeutic fostering or caring for children with disabilities – These roles often require extra training and experience, and typically provide increased support and payments.
Each type of placement carries different responsibilities, and the pay is adjusted accordingly to reflect the commitment needed. If you’re unsure about what a particular placement might involve, your fostering team or social worker will provide clear guidance and help you decide what’s right for your household.
Gaps Between Placements
It’s important to understand that foster carers are generally only paid when they have a child placed with them. This means there can be short gaps between placements where no fostering income is received. While these gaps are often brief, they can affect your monthly budgeting.
Many foster families prepare for this by setting aside savings or combining fostering with part-time or flexible work. Some carers may also qualify for housing benefit or continued access to financial support through benefits like universal credit during these quieter periods.
Your social worker or fostering agency will support you in understanding how to plan ahead financially. They can also help you stay ready and available for upcoming placements to reduce waiting times and make the most of your availability.
Can You Foster as a Main Income?
Yes, many foster carers in Wales successfully foster as their main source of income — but it’s not guaranteed every week. Your ability to do so will depend on:
- How many children you’re approved to care for
- The demand in your local area (as some local authority foster teams are busier than others)
- The types of placements you’re open to (e.g. emergency, long-term, siblings)
If you’re looking to foster on a full-time basis, it’s important to have open conversations with your fostering team about what’s realistic. They’ll help you weigh up your options, explore any financial incentives available, and plan accordingly.
Some carers also complete ongoing training to access enhanced roles or specialist placements, which can increase the fostering payments you receive. Planning ahead with the right support makes all the difference.
Do Foster Carers Pay Tax?
Yes — but the good news is that foster carers in Wales benefit from Qualifying Care Relief, which allows you to earn a significant amount of fostering income tax-free. The allowance is based on the number of children you care for and their age, and payments are calculated weekly depending on your placement situation.
Even though you may not owe any tax, you are still required to register as self-employed, submit a yearly tax return, and keep a record of your fostering payments. It’s a straightforward process for most carers and helps ensure you remain eligible for other types of financial support.
If you’re also claiming universal credit, tax credit, or working tax credit, it’s worth getting expert advice on how your fostering income might affect those benefits. Your social worker or fostering team can also point you towards additional resources or help you connect with a financial adviser.
Other Financial Support
In addition to your weekly fostering allowance and fee, there are other forms of financial support that may be available, depending on your circumstances and the needs of the foster child in your care. These can include:
- Additional funding during school holidays to help cover increased activity and food costs
- Support with housing benefit, especially if your income varies due to gaps between placements
- One-off or regular allowances for birthdays, holidays, or special occasions
- Help covering the cost of activities, technology, clothing, or other essentials when caring for a child with specific needs
Every fostering agency or local authority may offer slightly different forms of help, so it’s important to ask early and keep communication open. Your social worker or local foster wales team will guide you through what’s available and help you access the right support at the right time.
Building a Nurturing Environment
More than anything, fostering is about offering a safe and nurturing environment to a young person who needs stability and care. While the financial side of fostering helps you meet their needs, the heart of the fostering role is emotional support, consistency, and advocacy.
Every foster child comes with their own story — sometimes complicated, sometimes hopeful — and as a foster carer, you help shape their next chapter. Whether you’re supporting a baby, teen, or sibling group, your presence can make a real difference in a child’s life.
The money is there to back you, not replace you. It’s designed to make sure you have what you need to offer the care they deserve without additional financial pressure. If you’re fostering alongside your own child, you’re also helping to model empathy, resilience, and kindness in your home.
FAQs
Can I foster if I already have children?
Yes, many foster families have children of their own. Your experience as a parent can be a huge asset when helping a foster child adjust to their new surroundings.
Do I get paid if the child goes on a short trip or hospital stay?
In most cases, yes. Fostering payments usually continue for short absences, but always check with your local authority or fostering agency to confirm what’s included in your agreement.
Can I work and foster?
Yes — many foster carers balance part-time or flexible work with fostering. As long as you’re able to be available and responsive to the child’s needs, it can be done successfully. Some carers also qualify for financial support during gaps between placements.
What happens to my income during school holidays?
Your fostering allowance continues as normal during school breaks. Some local authority foster carers may also receive access to funded activities or free entry to events to help support the child during holiday periods.
What support is there for new carers?
You’ll have a dedicated social worker, access to expert advice, and opportunities for ongoing training to help you build confidence and grow in your role. Support is always close by — whether it’s from your team, other foster carers, or local networks.
