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This guidance clarifies the principles underpinning the payment of an allowance to the parent caring for a baby in placement, and what the allowance should cover and weekly amount suggested. The amounts suggested are guidelines of what should be normally paid, but it is recognised there may be exceptions to these general rules which must be clarified at the placement’s outset.

Brighton and Hove City Council offers a competitive range of allowances to foster carers who come forward to look after children and young people in the City who, for whatever reason, are unable for a time to live within their own families. The financial package goes hand in hand with an excellent range of additional supports that are offered to all carers.

Having pocket money is good for the child/young person. It gives a sense of independence and a measure of choice in making decisions about how the money is spent. Receiving pocket money helps children understand the value of money and is the start of developing budgeting skills.

Special tax arrangements apply to all foster carers who receive income from local authorities for providing foster care to children and young people up to 18 years old (21 if the young person is disabled). Her Majesty's Revenue and Customs (HMRC) has introduced a tax threshold for foster carers. If you receive less than the threshold – you will pay no tax on the money you receive from your local authority.

If you need to claim Housing Benefit (HB) to help you pay your rent there are specific rules concerning foster carers.