Fostering Allowance & Benefits Calculator: DLA & PIP
As a foster carer, you may be entitled to claim benefits and tax credits. These benefits are usually completely disregarded as income or only taxable profit from your fostering is taken into consideration for the purposes of calculating your entitlement to benefits. For further information about what benefits, you can claim, read our guide below. For a calculation for fostering benefits, call us on 0121 794 2289.
Can Carers Claim Child Benefit?
Foster carers cannot claim Child Benefit for any fostered children who are placed with them. However, you can claim Child Benefit for your own children or other children who live with you (who are not fostered).
What Is The Fostering Tax Allowance?
Fostering allowance breakdown:
£10,000 per annum household allowance plus – this is pro-rata if you have only been a Foster carer for part of the tax year.
A weekly allowance depending on the age of your Foster children being:
● £200 per week per placement under the age of 11
● £250 per week per placement over the age of 11
If your Foster child becomes 11 in the tax year, the rate will change from £200 to £250.
Your income from Fostering is the total income that you received for your Fostering duties, including reimbursed expenses, mileage, clothing allowances etc.
You can find out more about Fostering Income and Tax returns in our guide on Foster Carer Pay and Tax Returns.
Can Foster Carers Claim Carers Allowance?
You may be entitled to fostering allowance if your foster child is receiving Disability Allowance (DLA) or Personal Independence Payment (PIP).
Key Facts About Foster Carer’s Allowance
- Eligible carers must earn less than £120 each week (ignoring Fostering income)
- It’s classed as being a source of taxable income
- It doesn’t count towards the benefits the cap but can affect carers’ other benefits
How Much Do Foster Carers Earn & How Much Is The Fostering Allowance?
The current payment is £66.15 a week.
What Is An Enhanced Foster Carer Allowance?
An enhanced allowance is available for carers with complex or solo children.
How Often Do I Get My Fostering Allowance?
The timing of payment will be decided by your service provider.
If you have any questions or would like more information or help with finding out if you are entitled to receive a carer’s allowance, get in touch with us.
Foster Care Benefits:
Disability Living Allowance
Disability Living Allowance is a tax-free benefit for children who need help with their care due to mental or physical disabilities.
Key facts about DLA and Foster Carers:
- It’s paid to children up to the age of 16
- Queries regarding eligibility should initially be dealt with by the child’s social worker
- Varying rates are available, depending on the level of disability
- Local authorities with parental responsibility may want proof it’s being used as intended
- This means carers may be asked by the service provider for a breakdown of the way DLA contributes to their extra fostering costs
- Foster carers do not need birth parents’ permission to apply for DLA (although it is good practice for the child’s social worker to inform the parent)
- DLA money cannot be saved for use in later years, as this could penalise the child
Still got some queries about DLA, how it impacts you and your foster child, or who to contact to find out more? We can help.
Personal Independence Payment (PIP)
The PIP is a benefit that is aimed at helping adults with long-term health conditions or disabilities with their additional living costs.
Key facts about PIP:
- It’s the DLA equivalent for people aged 16 and over
- It doesn’t involve the same eligibility criteria or rates as DLA
- Most applicants have to take part in a face-to-face PIP assessment
- It’s made up of two main areas – daily living and mobility
- It isn’t means-tested and is paid whether or not the recipient is working
- If the recipient is switching from receiving DLA to PIP, their needs must be expected to last for at least nine months
- These conditions do not apply to terminally-ill applicants
- Just because a child receives DLA, doesn’t necessarily mean they will qualify for PIP
Want to find out more about PIP, such as how to apply for it and how it’s calculated? Get in touch with us for more details.
To find out if you could be eligible for any further benefits, read our Guide To Foster Carer Benefits
Do you need help calculating your fostering allowance and benefits? Call us on 0121 794 2289 for more information and guidance.