Fostering is a professional role with responsibilities. The payment and allowances paid by local councils across Greater Manchester reflect this. Each local council sets its own rates for fees and allowances based on UK government guidelines. 

All foster carers are registered as self-employed with HMRC. Foster carers can continue to work full or part-time as well as being a foster carer. Some people make foster caring their full-time career. 

Foster carers receive a fee payment that recognises their role in supporting children across Greater Manchester. Payment is made by the local council they are fostering for, and the amount they are paid is based on the number of children in their care, as well as other factors such as the child’s age and needs. 

Foster carers also receive a weekly allowance to help cover the costs associated with caring for a child, for example utility costs, food, clothing, toiletries, entertainment, activity and recreational costs and pocket money. 

The amount that foster carers receive takes into consideration the foster carer’s experience, the type of fostering and the age of the child. As a guide, across Greater Manchester’s ten local councils, the combined weekly fee and allowance can range from anywhere between £268 and £560 per child.

The fees and allowances are per child. If a foster carer has more than one child in their care at a given time, the fees and allowances will be multiplied by the number of children. 

In addition, all ten local councils provide additional allowances which can be in excess of £2,000 per year, per child. These additional allowances are for:

• Birthdays
• Holidays
• Religious festivals
• Initial clothing
• School uniform
• Transport / mileage
  
  

Further allowances are available to cover the cost of purchasing equipment, for example, general health and safety equipment, babies and toddler equipment, car seats, bedroom furnishings and any other specialist equipment that may be required.  

In 2025, foster carers do not pay tax on the first £19,690 they earn from fostering each year. Ref: https://www.gov.uk/support-for-foster-parents/tax-arrangements 

On top of the £19,690 exemption, foster carers also get tax relief for every week (or part week) that a child is in their care. For a child under 11 years the tax relief is £415 per child, and £495 for a child over 11 years of age. This means foster carers do not usually pay tax on your earnings from foster care, even if they go over £19,690. The UK government also gives foster carers National Insurance Credits towards a state pension.

Further information and an illustration of how tax relief works can be found at: https://www.gov.uk/support-for-foster-parents/tax-arrangements