Fostering Allowances 2025/26 Explained: London, South East & (Rest of) England

Choosing to foster is a big step—and getting clear on money matters helps you plan with confidence. This guide breaks down the 2025/26 National Minimum Allowance (NMA) for England, how the regional bands work (London, South East, Rest of England), what changed this April, and how allowances fit alongside carer fees and tax relief.

What is the National Minimum Allowance (NMA)?

In England, every fostering service must pay at least the National Minimum Allowance to cover a child’s day-to-day costs (food, clothing, utilities, transport, activities). Agencies and councils can pay more than the minimum—many do—but they cannot pay less. The NMA updates each April and varies by child’s age and where you live.

England’s weekly NMA rates for 2025/26

Applies 6 April 2025 – 5 April 2026

Child’s age	London	South East	Rest of England
0–2	£198	£189	£170
3–4	£201	£196	£176
5–10	£225	£216	£194
11–15	£257	£247	£220
16–17	£299	£288	£258

These are the minimum weekly allowances. Your package may be higher once skill/fee payments and any extras (e.g., mileage, birthdays, holidays) are added by your fostering service. Always ask for a written breakdown of allowance vs fees.

What changed in April 2025?

The UK Government uplifted England’s NMA for 2025/26; sector summaries note an increase of around 3.55% year-on-year. That rise reflects cost-of-living pressures and sits alongside a separate uplift to foster-carer tax relief (details below).

Allowance vs. fee: what’s the difference?

• Allowance (the table above): money intended for the child’s costs.
• Fee/skill payment: money that recognises your time, skills and professional role.
• Add-ons and reimbursements: many services reimburse mileage, provide birthday/holiday/festive payments, or fund equipment and school-related costs (exact offers vary by council/agency).

Why it matters: online figures often mix these elements together. When comparing offers, request a line-by-line quote so you can see what’s guaranteed (allowance) and what’s variable (fees, extras).

How the regional bands work (and why they differ)

England’s NMA is split into three bands:

• London – highest baseline due to capital-city costs
• South East – mid-band
• Rest of England – baseline for other regions

Your home address sets your band (not the child’s school area), and the child’s age sets the row in the table. Services can pay above the minimum; some councils publish their own tables that meet or exceed the national baseline.

What the allowance is expected to cover

The allowance is designed to cover day-to-day living: food, clothing, toiletries, household bills, school meals, local transport, hobbies/activities, and reasonable wear-and-tear. Many local authorities also describe what extras they fund—for example, separate budgets or reimbursements for uniforms, club fees, equipment, and one-off costs with receipts. Check your local policy documents for caps and claim rules.

Tip: keep simple records and receipts. Clear spending records make it easier to claim extras (where offered) and to complete your tax return.

Typical “extras” and reimbursements to ask about

• Mileage for school runs, contact, medical appointments, clubs (rate per mile and any thresholds).
• Birthdays/holidays/festive payments (how much, when they’re paid, per child).
• Equipment (e.g., cot, car seat, pushchair), passports, and school uniform grants.
• Retainers (if a placement ends suddenly), respite rates, and specialist allowances for higher-needs placements.

The 2025/26 tax position: Qualifying Care Relief (QCR)

Most foster carers pay little or no income tax on fostering because of QCR, a specialist relief set by law and uprated for 2025/26. For the tax year 6 April 2025 to 5 April 2026, the indexed amounts are:

• Fixed household amount: £19,690 per year, plus
• Weekly amount per person cared for: £415 (child under 11) or £495 (young person 11+ or adult).

If your total fostering receipts are below your “qualifying amount” (fixed + weekly amounts), you owe no income tax on fostering income. If they’re above, you can still use a simplified calculation method—see HMRC’s helpsheet HS236 and the Indexation Order 2025 for details.

Good practice: keep a simple placement log (dates and ages) plus any fees/allowances received. It makes calculating your QCR and completing self-assessment far easier.

Local authority (LA) vs independent fostering agency (IFA)

Both must meet or exceed the NMA, but overall packages vary:

• Local authorities usually show allowance + a published skill/fee ladder.
• IFAs tend to publish combined weekly figures (allowance + fee together) and may differentiate by placement type (e.g., therapeutic, parent & child).

Beyond pay, compare training, 24/7 support, respite, matching quality, and mileage/contact reimbursement—these often make the biggest difference to your day-to-day experience and stability. (Many councils and agencies publish their allowance pages openly, where you can see examples of banding and extras.)

Three quick scenarios (how the pieces fit together)

These simplified examples show structure, not your exact totals—always get a written breakdown for your situation.

1. South East, 9-year-old
   • Allowance (SE, age 5–10): £216/week (minimum)
   • Plus your agency’s skill/fee (varies), and any mileage/birthday/holiday extras as per policy.
2. London, 15-year-old
   • Allowance (London, 11–15): £257/week (minimum)
   • Older teens often have higher transport/activities—ask what’s reimbursable and how to claim.
3. Rest of England, 16-year-old
   • Allowance (Rest, 16–17): £258/week (minimum)
   • Check your service’s young-person policy on education/travel support and holiday payments.

FAQs carers ask every April

1) Will my allowance change mid-placement?
Yes—if the child has a birthday that moves them to a higher age band, the weekly minimum changes accordingly. Annual uplifts start each April; agencies will confirm the revised amounts.

2) Can services pay more than the NMA?
Absolutely. Many services add carer fees and extras; councils sometimes publish local tables set at or above the minimum. Get the split in writing so you know what’s guaranteed.

3) What’s the difference between “minimum allowance” and “take-home pay”?
Your take-home often equals allowance + fee + extras, minus any tax due after applying QCR. Many carers find their fostering income falls below the QCR limit—so no income tax is payable on fostering.

4) I’m comparing London vs South East—why is London higher?
The Government sets regional bands to reflect cost differences; London’s minimum is the highest, then South East, then Rest of England. Your home address determines the band.

5) Where can I see what my council covers besides the allowance?
Check your local “fees and allowances” page. Many list birthday/holiday payments, uniforms/equipment, and mileage rules (caps, rates, receipts). Examples are published by several councils each spring.

How to use this information (and avoid common pitfalls)

1. Ask for a full written package: weekly allowance, fee/skill payment by level, respite rate, mileage rate, and extras (birthday/holiday/festive, equipment, passports). This makes comparisons fair and avoids surprises later.
2. Date-stamp your notes: 2025/26 rates apply 6 April 2025 – 5 April 2026—bookmark the GOV.UK page and update each April.
3. Keep simple records: child age bands, placement weeks, and amounts received make QCR calculations straightforward at self-assessment time. Save receipts for any claimable extras.
4. Think beyond the numbers: stability, support, training, and good matching often matter more than a few pounds’ difference in headline rates.

Bottom line

• The 2025/26 England National Minimum Allowance starts at £170–£201 for under-5s (depending on region) and rises with age to £258–£299 for 16–17s. London has the highest band, followed by the South East, then Rest of England.
• Many services pay above the minimum through fees and extras. Focus on the full package and support offer, not just the base allowance.
• Tax relief (QCR) rose for 2025/26 to £19,690 fixed plus £415/£495 per person-week (under/over 11). Keep good records; many carers owe no tax on fostering income.