Home
Please enter a search term

Useful pages

Find a fostering service Types of fostering Fostering and finances Contact us
Home Page Already fostering? Fostering and finances

Fostering and National Insurance

You pay National Insurance Contributions (NICs) to qualify for certain welfare benefits and the State Pension.  There are two types of National Insurance for people who are self-employed, depending on their profits – Class 2 and Class 4:

  • If you would like to check your National Insurance record and how many contributions you have made, you can do so on the government's website, here.
  • Class 2 National Insurance cease when you reach state pension age. 
  • Class 4 National Insurance stop from 6 April (start of the tax year) after you reach state pension age.
Couple Looking At Laptop

Class 2 NICs

When a foster carer registers as self-employed, they also register for Class 2 NICs. Foster carers can decide to pay Class 2 NICs voluntarily. For example, if they have £0 taxable profit or are below the small profits’ threshold, which maintains your national insurance record, access to the state pension and to be eligible for certain welfare benefits.

Note: For 2023-24 Class 2 NICs are £3.45 per week (£3.45 per week for 2024-25). There is an option when completing the tax return form to pay the Class 2 contributions voluntarily which is £179.40 (2023-24). 

Paperwork

Class 3 NICs

Foster carers can apply for a NI credit for each week they approved as a foster carer. Foster carers can apply for NI credits at the end of each tax year. They contribute to state pension only.

Apply for National Insurance credits on the government's website if you’re a parent or carer, here.

Doing Paperwork

Class 4 NICs

Class 4 NICs must be paid if you make a certain amount of profit from your self-employment.

Note: There have been several changes to Class 2 and 4 NICs following the government's Autumn statement 2023 and Spring budget 2024.

Woman Doing Maths

Further resources

The following organisations may be able to provide additional advice and information. 

Government National Insurance General Enquiries

Low Incomes Tax Reform Group (LITRG)

Future Pension Centre

  • Telephone: 0800 731 0175

MoneyHelper

Free and impartial help with money, backed by the government 

E4094fdf 32Ff 4E44 Ae82 E2f29801b37f

Remember, all foster carers must register as self-employed. We have guidance on how to register as self-employed with HMRC, here. 

Registering as self-employed
The Fostering Network
Department for Education

About us

What we stand for

Job vacancies

Contact us