IFA Contracts and Allowances: Reading the Small Print

Becoming or transferring as a foster carer with an Independent Fostering Agency (IFA) is exciting—but it’s also a contractual relationship with real terms, conditions and financial implications. The glossy brochure will talk about support and community. The contract and carer handbook spell out what that really looks like week to week: what you’ll be paid, what you’re expected to do, and what happens if placements end early or you need a break. This guide walks you through the clauses that matter most so you can sign with confidence, negotiate fairly, and avoid nasty surprises later.

Quick note: this is practical information, not legal advice. If a clause worries you, ask the agency to amend it or take independent advice before you sign.

What You’re Actually Signing: The Carer Agreement

Your “contract” is usually a combination of the Carer Agreement, the Schedule of Payments (rate card) and the Carer Handbook. Read them together: the Agreement sets the obligations, the rate card shows the money, the Handbook explains daily practice.

Allowance vs Fee: Know the Difference

Most IFAs split money into two parts:

• Allowance: covers the child’s day-to-day costs—food, clothing, utilities, routine transport, pocket money, birthdays/celebrations, small equipment. Think of it as the child’s budget managed by you.
• Fee (sometimes “professional” or “skill-level” fee): pays you for your time, skills and availability. This can step up with experience, training or placement complexity (e.g., therapeutic or parent-and-child).

This distinction matters. If a clause later says “the allowance may be adjusted,” check whether that means your professional fee stays the same. Also note how the IFA defines “enhancements” (additional payments for complexity, contact supervision, or emergencies).

Allowances and Fees: The Bits That Affect Your Pocket Every Week

The headline weekly figure looks reassuring, but the detail determines your real income and your outgoings.

Core Allowance for the Child

Look for a table that breaks the allowance down by age band and placement type. The contract should specify what the allowance is intended to cover and what the agency will reimburse in addition (e.g., high mileage, specialist equipment, school uniform at placement start). If the contract uses phrases like “reasonable costs,” ask for examples in writing.

Professional Fee / Skill Level Fee

Many IFAs use skill levels (e.g., Level 1–3) with clear criteria: training completed, years of experience, evidence of competencies. Others pay a flat fee and add enhancements for specific placements—therapeutic, solo, sibling groups, parent & child, remand, or unaccompanied asylum-seeking children (UASC). Check:

• Who decides the level and how often it’s reviewed
• Whether enhancements apply automatically or must be pre-agreed
• If enhancements end the day a risk reduces, or at the end of a review period

Enhancements and Add-Ons

Contracts often mention top-ups for contact supervision, sleep-ins, waking nights, hospital stays, or education meetings outside normal hours. Insist on written rates and triggers for each. If the agency says “we pay case-by-case,” ask for a published range and the decision criteria.

Retainers, Cancellations and Notice

These are the clauses most likely to affect your finances when life happens.

Bridging Payments Between Placements

Does the agency pay a retainer (sometimes called “bridging”) when you’re available but unplaced? If yes, the contract must state:

• The amount (flat fee or % of your usual fee)
• The maximum duration (e.g., up to 2 or 4 weeks)
• Any conditions (e.g., attending training, taking emergency referrals, keeping a room free)

If there’s no retainer, you effectively have zero-hours income between placements. That’s not unusual, but you should plan for it.

Early Endings, Cancellations and “Clawback”

Placements sometimes end suddenly—family reunification, risk changes, a move to residential, or a disruption. Look for:

• Notice for placement end: does the IFA guarantee a minimum pay period (e.g., 7 days) when the decision isn’t yours?
• Pro-rata adjustments: many agencies reduce the week to the actual days the child lived with you.
• Clawback: if the agency pays weekly in advance, can they reclaim overpayments immediately? Negotiate a reasonable repayment schedule if so.

Ending Your Approval or Transferring Agency

If you’re transferring, check notice periods and whether you can give conditional notice (“effective on approval by the new agency”). Good contracts allow portability of your Form F and references. Red flags include long notice without placement or attempts to restrict you from fostering with others (a de-facto non-compete).

Training Hours and Expectations

Support and training are selling points for IFAs. The contract sets the minimums; the Handbook explains the programme.

Mandatory Training and CPD

Expect annual refreshers for first aid, safeguarding, and topics like therapeutic parenting (e.g., PACE), de-escalation and recording. The contract should state how many hours you must complete, whether online modules count, and if specific advanced courses are required for therapeutic or parent & child fostering.

Time Off, Childcare and Expenses for Training

If training is in person, who pays travel and childcare? Are meals or a day allowance covered? If the agency requires weekday daytime attendance, ask how they support carers who also work or who have young children at home.

Supervision, Visits and Out-of-Hours

Your supervising social worker (SSW) will visit regularly. The contract should state the minimum frequency, include unannounced visits, and set expectations for out-of-hours contact (both your access to support and any expectation that you answer calls for emergency matches).

Mileage, Equipment and “The Extras”

Small-print on expenses is where many disputes start.

Mileage and Transport

Check the pence-per-mile rate and what journeys qualify: school runs, contact, health appointments, training, extracurriculars. Look for rules on logging (e.g., digital forms, monthly cut-off) and caps (some IFAs cap everyday school mileage within the allowance and only reimburse contact/medical).

Clothing, School and Setup Grants

At the start of a placement you may need school uniform, winter coats, bedroom items or car seats. Does the agency offer a one-off setup grant, or is it folded into the first weeks’ allowance? If the child arrives late evening with very few belongings, can you claim an initial shop the next day without pre-authorisation? Get that in writing.

Holidays, Birthdays and Religious Festivals

Many rate cards include specific amounts for birthdays, religious festivals and annual holiday contributions. Clarify when and how they are paid and whether receipts are needed. If the child is on an international trip with you, check insurance and consent letters requirements, plus whether the allowance covers passport fees.

Recording, Data and Insurance: Small Print That Matters

Practice clauses can be as financially significant as payment clauses.

Daily Logs, Contact Notes and Confidentiality

You’ll be required to keep daily recordings, contact notes and incident reports. The contract should state where to store them (e.g., agency portal), how to share with the SSW, and retention periods. If the agency expects you to write reports for court, clarify the rate for time spent beyond normal recording.

Data Protection, Photos and Social Media

Look for clear rules on using names, storing documents, and sharing photos. The best contracts say the agency provides secure systems and training; you agree to follow them. If personal devices are used for photos/notes, does the agency provide guidance (and support) on passwords and backup?

Insurance, Damage and Risk Funds

Most IFAs provide a group insurance policy for carers (public liability; sometimes property damage), but your home insurer still needs to know you foster. The contract should say how to claim for accidental damage and under what circumstances the agency contributes via a risk fund. Ask for claim caps, exclusions (e.g., mobile phones, gaming devices), and time limits.

Allegations, Standards of Care and Support if Things Go Wrong

No one wants it, but you must know the process.

Immediate Process and Your Rights

The contract should describe what happens if there’s an allegation or standards of care concern: who informs you, what’s expected, whether children remain in placement, and the role of the LADO (Local Authority Designated Officer). You should have access to independent support and clear timescales for updates.

Pay During Investigations

Some IFAs continue fees while investigations are ongoing; others stop all payments if there’s no child in placement. This single clause can define your financial resilience. If payment stops, is there at least a reduced retainer? If not, consider how you would manage a several-week pause.

Complaints and Escalation

Your contract should outline a three-stage complaints process. You can also share concerns with the regulator (Ofsted)—they don’t resolve individual complaints but do use information to inform inspections. If your complaint relates to a placement decision by a local authority, the Local Government & Social Care Ombudsman may be relevant; ask your IFA which route applies.

Red Flags in IFA Contracts (and How to Negotiate)

You have more leverage before you sign than you think. Agencies want committed carers—good ones ask smart questions.

Payment Transparency and Rate Cards

Refuse vague wording like “enhancements as appropriate.” Ask for a rate card with specific figures or ranges for core fees, enhancements, retainers, contact supervision, sleep-ins, waking nights, mileage, training travel, set-up grants, holiday and birthday contributions. If the agency won’t share this in writing, move on.

Responsibilities Creeping Without Support

Watch for expectations that expand your role—supervising family time, transporting long distances, writing court-style reports, waking nights—without a matching enhancement. Ask the agency to list triggers that automatically add the correct top-up.

Locked-In Notice or Non-Compete Clauses

Long notices (e.g., 12 weeks) with no promise of work, or any clause preventing you from fostering elsewhere, are unfair. A balanced agreement allows you to serve notice concurrent with transfer and doesn’t restrict your future.

A Quick Pre-Signing Checklist

Questions to Ask

• What’s my weekly fee and the child allowance by age band?
• What enhancements exist and how are they triggered?
• Do you pay a retainer between placements? How much and for how long?
• What’s the notice if a placement ends without my decision?
• Do you pay contact supervision, sleep-ins, waking nights, and at what rate?
• What’s your mileage policy, and what journeys qualify?
• How many training hours are mandatory, and who pays travel/childcare?
• What happens to pay during allegations if I’m without a placement?
• How do I claim for damage or setup costs, and what are the caps?
• If I later transfer, what’s the notice and how do you support it?

Documents to Request

• The rate card / schedule of payments
• The latest Carer Handbook
• A sample expenses claim and mileage form with cut-off dates
• A copy of the insurance summary and damage claims process
• A written training plan for your first year

Tax, Benefits and Practical Admin

Most UK foster carers use Qualifying Care Relief for tax which can make much (sometimes all) fostering income tax-free, but this depends on the number and type of placements. Keep simple monthly records: placement dates, payments received, mileage, and receipts for reimbursables. Tell your home insurer you foster and keep your MOT/insurance current if you’re claiming mileage. If you also work, ask your IFA how fostering income interacts with benefits and refer to official guidance if unsure.

Bottom Line

The best IFA contracts are clear, fair and predictable: they respect your professionalism, pay you properly for added responsibilities, and support you when things get tough. Before you sign, get the money in writing, tie extra duties to automatic enhancements, insist on a retainer policy, and understand notice and allegation procedures. If a clause feels vague or one-sided, ask for an addendum. Your skills and your home are invaluable—make sure the small print recognises that.