Transport, Mileage and Holiday Payments: What You Can Claim

Getting the finances right around transport, mileage and holiday payments can make a real difference to your fostering household. Most fostering services want you to be no worse off when you drive to school, supervise family time, attend health appointments, or give a child their first proper break by the sea. The challenge is that rules and rates vary between local authorities and independent fostering agencies (IFAs), and there are a few moving parts: what’s included in the weekly allowance, what can be claimed on top, what proof you need, and how this interacts with tax. This guide pulls it all together so you can plan with confidence and claim what you’re due—while staying within policy.

1) What counts as transport costs?

In fostering, “transport” usually covers any essential journey that arises because the child is in care. That typically includes:

• Daily school runs (especially when children remain at their original school after a move)
• Contact/family time, supervised or supported, at agreed venues
• Health and wellbeing appointments (GP, dentist, hospital, CAMHS, therapies)
• Education-related meetings (PEPs, SEN reviews), social work visits, youth justice meetings
• Clubs, extracurricular activities, and trips set out in the care/placement plan
• Foster carer training and some recruitment/participation activity when requested by your service

Which of these are reimbursed on top of the weekly allowance depends on your service’s scheme. National guidance from GOV.UK confirms that carers can get extra money for school trips, holidays, birthdays and religious festivals, but the nuts and bolts of transport and mileage are set locally.

2) Mileage claims: the benchmark rate and how it’s applied

The 45p per mile benchmark

Many councils and IFAs reimburse approved mileage at around 45p per mile, broadly in line with HMRC’s Approved Mileage Allowance Payments used in other settings. Current published examples include Essex and Kent, both referencing 45p/mile in their foster carer mileage guidance. Rates can differ, so always check your own handbook or finance schedule.

What journeys are reimbursable?

Common practice is to reimburse mileage for care-related journeys that go beyond ordinary day-to-day local travel. Some services include a small local travel element within the weekly allowance and then pay additional mileage above a threshold or for longer trips. For instance, Argyll & Bute notes a weekly travel element and pays 45p/mile for extra mileage over a set distance; that illustrates the “allowance-plus-extras” approach some schemes adopt.

Thresholds, caps and deductions

Local rules sometimes set thresholds (e.g., only claim above X miles per journey) or apply deductions to reflect travel already funded within the weekly allowance. Kent advises 45p/mile but applies a calculation that deducts a portion of the daily maintenance element; it also warns late claims (e.g., after three months) may be rejected. This shows why reading your specific scheme matters—even when the pence-per-mile headline looks familiar.

Documentation and claim windows

Expect to submit monthly or four-weekly claims with: date, purpose (e.g., “PEP meeting” or “supervised contact”), start/finish postcodes or odometer readings, and total miles. Keep any parking, toll or public transport receipts. Many services enforce a cut-off period (often 1–3 months); after that, claims can be refused.

3) Public transport, parking, tolls and taxis

If you use buses, trains, trams or ferries for an approved journey, you can usually claim the actual fare with the receipt. Parking charges and tolls are typically claimable when they’re integral to an approved journey (e.g., hospital parking; Dartford Crossing for contact). Some services will fund taxis when risk, disability, distance or scheduling makes public transport or driving impractical—this should be agreed in advance with the social worker and/or supervising social worker.

Published local finance guides, like Essex, explicitly list reimbursement for parking fees or public transport costs alongside the mileage rate. If you know a series of high-cost appointments are coming, ask for pre-approval to avoid delays in payment.

4) How transport interacts with the weekly allowance

The weekly fostering allowance is meant to cover the day-to-day cost of caring: food, clothing, utilities, routine local travel and incidentals. Each year, the Department for Education uplifts England’s national minimum allowance (NMA). For 2025/26, there was a 3.55% uplift, but councils and IFAs can top this up and also set separate rates for fees/skills. This matters because some services treat short, local journeys as “included,” and reimburse only the additional mileage linked to the placement plan.

To see how different models work in practice:

• Argyll & Bute shows a small weekly travel component within the allowance and reimburses extra at 45p/mile over longer distances.
• Kent pays 45p/mile but applies a deduction linked to the daily maintenance element, to account for travel already funded in the allowance.

Takeaway: your placement plan and service finance policy determine when a journey moves from “everyday local” (covered by the allowance) to “claimable mileage” (reimbursed on top).

5) Holiday payments: how they work and what they’re for

Annual holiday grants

Most fostering services provide an annual holiday payment per child—designed to help with the extra cost of day trips, activities and breaks during school holidays. GOV.UK backs the principle of extra money for holidays (and for school trips, birthdays and religious festivals). The detail—amounts, timing, and claim method—varies by service:

• Some councils pay a fixed grant linked to the weekly allowance. Staffordshire, for example, pays a birthday grant equal to one week’s child allowance, and also lists festival/holiday payments in its handbook.
• Other services publish set figures by age band. One public guide (2024/25) lists age-based holiday payments alongside birthday and religious festival amounts—useful as a model for how schemes are structured, even though numbers differ locally and change annually.
• A number of IFAs publish representative figures (e.g., annual holiday top-ups plus weekly transport elements), again underscoring the variation across providers.

What you can use it for: accommodation, entry tickets, activity passes, kit (e.g., swim gear), petrol or fares tied to the holiday, and a contribution to food/ice creams—always check the guidance for any exclusions.

School trips and short breaks

Educational residentials and day trips are usually supported—either via the school’s own hardship route or through your fostering service. The GOV.UK page explicitly lists school trips as eligible for extra help, so flag them early to your supervising social worker.

6) Taking a child in care on holiday: consent, passports and paperwork

Before you press “book now,” confirm who has parental responsibility and what has been delegated to you in the placement plan. In England, the GOV.UK guidance is clear: if you don’t have the authority to take a child on holiday, you must speak to the child’s social worker; if you are going abroad, you should obtain a letter of consent for passport control. Allow time for passports and any visa or EHIC/GHIC requirements.

Best practice from fostering services and procedures sites echoes this: don’t book until consent is confirmed, plan around contact arrangements, and build in time for documentation. Expect to complete a simple risk assessment (destination, supervision, medical needs) and carry copies of medication and emergency contacts.

7) Worked examples (so you can sanity-check your plans)

Example A: Weekly contact plus school

• Contact centre return journey: 32 miles, once per week x 4 = 128 miles
• Hospital appointment: 24 miles
• Two PEP/SENCO meetings: 2 × 16 = 32 miles
  Total claimable miles: 184
  If your scheme pays 45p/mile, the gross claim is 184 × £0.45 = £82.80.
  (Your service may deduct a small amount to reflect day-to-day travel already in the allowance; check your policy and submit within the claim window.)

Example B: Summer holiday grant plus travel

• Your council/IFA pays a holiday grant per child (e.g., a sum linked to the weekly allowance, or an age-banded amount).
• You also claim mileage/parking for the days out during that period where the scheme allows it.
  This is normal practice—holiday grants are to enable experiences, while transport rules still apply per policy.

8) Record-keeping and tax: what to keep, and how it fits with QCR

The HMRC scheme for foster carers—Qualifying Care Relief (QCR)—means many carers pay little or no tax on fostering income. You still need to file a Self Assessment and keep basic records (allowances, fees, travel claims, receipts) in case you ever need to evidence your figures or switch to the “profit method”. The Fostering Network and HMRC help-sheets explain the rules in plain English.

Good practice is to keep a simple mileage log (date, purpose, start/finish, miles) and a folder or app for receipts (parking, tolls, tickets). If your service issues pre-paid cards or requires online forms, align your records with their categories to avoid delays.

9) Common pitfalls to avoid

• Booking a holiday before consent: Even UK breaks need planning around contact and delegated authority. For abroad, get the consent letter and check passport timelines.
• Late claims: Some services won’t pay claims submitted after a set period (e.g., three months). File monthly to stay safe.
• Assuming “everything” is reimbursable: Routine local travel is often considered covered by the weekly allowance; additional mileage is what’s typically claimable. Ask first for unusual or high-cost journeys.
• Forgetting parking/tolls receipts: Mileage alone won’t cover these unless you attach evidence where required.

10) Quick checklist (print and stick on the fridge)

• Before term starts: map school/contact routes; agree what’s claimable; set up a mileage log.
• Before booking a holiday: confirm delegated authority, contact plans, consent letter, passports, insurance, and any risk assessment.
• Every month: submit mileage plus parking/tolls within the claim window; keep receipts.
• Every April: check the new allowance uplift and any changes to holiday/extra payments.

11) FAQs

Is 45p per mile a national rule?
No. 45p/mile is a common benchmark used by many councils/IFAs, but it’s not a single national rate; always check your service’s current policy. Published examples from Essex and Kent show 45p/mile—with local conditions on how it’s applied.

Do holiday payments cover day trips if we’re not going away?
Often yes. Services recognise that not every child is ready for a week away; holiday allowances are there to enable positive experiences, whether that’s a short break or local days out.

Can I claim for school residentials and big trips?
Yes—GOV.UK includes school trips within “extra money” you can apply for. Discuss early with your supervising social worker and the school.

How does this affect my tax?
Most carers use QCR, which means many pay little or no tax on fostering income. You still complete Self Assessment and keep basic records; check HMRC and The Fostering Network guidance if unsure.

What’s the first step if I’m unsure about a claim?
Email your supervising social worker/finance team with the purpose of the journey, estimated cost, and dates—and ask for confirmation that it’s claimable before incurring the expense.

Bottom line

• Your weekly allowance covers ordinary day-to-day costs, including some local travel.
• Additional transport that’s clearly tied to the care plan is typically reimbursed—often at around 45p/mile, with receipts for parking/tolls and within your service’s time limits.
• Holiday payments exist to make breaks and enriching experiences possible, not stressful—amounts and rules differ, so check your finance pack and plan early.
• Keep records, submit on time, and lean on your supervising social worker for approvals. With a little planning, you can claim everything you’re entitled to and focus your energy where it belongs—on the child’s experience.