Cost of living and foster care

For too long, foster carers have been subjected to income tax on their fostering allowance; a situation that did not make sense when you consider the vital role that they play in our society. NAFP has been campaigning for change and brought this issue to the attention of the Department for Education back in 2021. 

Update 15 March 2023: today's budget announcement was fantastic news for foster carers across England and Wales. Government has pledged to increase the Qualifying Care Relief (QCR) rate to take almost all of them out of the tax system, nearly doubling the threshold to £18,140 which will mean a tax cut for a qualifying carer averaging £450 a year. Now, many more foster families will see great benefit from this announcement and this may encourage more people to foster.

Increase in Qualifying Care Relief, HM Revenue & Customs 15 March 2023