Foster carers can foster and claim benefits. All allowances and fees received by foster carers in return for fostering are fully disregarded for the purposes of calculating entitlement to means tested benefits.
The following pages offer some information and guidance. However, we would always advise foster carers to seek advice regarding benefits from your benefits office.
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Universal Credit
The UK Benefits system is currently undergoing major changes with the introduction of Universal Credit which is being phased in across the country by 2024.
Universal Credit is a means tested benefit. You cannot receive Universal Credit if your capital (for example savings, investments etc) is above £16,000. Your income (excluding your fostering payments) needs to be sufficiently low enough to be entitled to Universal Credit. As your income increases your Universal Credit award decreases.
Universal Credit replaces six current welfare benefits: Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, Income Support, Child Tax Credit, Working Tax Credit, Housing Benefit.
The different elements of Universal Credit are: Standard allowance (i.e. single & under 25, single 25+, couple & under 25, couple where either is aged 25+), Work allowances, Child elements, Childcare costs element, Housing element, Limited capability for work elements, Disabled child elements.
For further information on Universal Credit, see our pages below:
Further sources of information
The following organisations may be able to provide further help and support in regards to Universal Credit.
Universal credit helpline
0800 328 5644 open Monday to Friday, 8am to 6pm
Citizens advice
You can visit their website here, or phone their UC 'Help to Claim' phone line on 0800 144 8444.
Their advisers can help you with a number of queries including; working out if you can get UC, filling in the application form, preparing for your first Jobcentre appointment, checking your first payment is correct.
Turn2Us
Turn2Us is a charity that provides information about benefits (but not individual benefits advice) and an online benefits calculator. They have information about fostering and benefits at the following on their website, here, or you can call them on 0808 802 2000
Child Poverty Action Group (CPAG)
CPAG has written a publication about Universal Credit ‘Universal Credit: What you need to know’ (6th edition) available to purchase at the following link https://cpag.org.uk/shop/cpag-titles/universal-credit-what-you-need-know-6th-ed
Government guidance
Government guidence on becoming a foster carer can be found on their website here: Benefits for foster carers.
