Fostering, benefits and pensions

Benefits and Pensions for Foster Carers

When you become a foster carer, your financial situation may change—but not in ways you might expect. Fostering is considered self-employment, which means many state benefits remain available to you, and you can still build up your entitlement to a state pension.

We’ll walk you through what’s possible and what support is out there.

What Benefits Can Foster Carers Receive?

There’s no one-size-fits-all answer—benefits depend on your individual circumstances—but here are some key points to keep in mind:

• You can usually still claim benefits.
  Thanks to a special scheme called Qualifying Care Relief, your fostering income is treated differently for tax and benefits purposes. This means it won’t usually reduce your eligibility for most state support.
  
  
• Universal Credit and Housing Benefit are unaffected.
  Your fostering allowance won’t count as income when applying for these. The same applies if you receive Carer’s Allowance or Disability Living Allowance (DLA) for a child in your own family.
  
  
• You might also qualify for tax credits.
  Fostering counts as self-employment. If you have children of your own, you may still be eligible for Working Tax Credit or Child Tax Credit.
  
  
• One exception: Jobseeker’s Allowance (JSA).
  If you’re actively fostering and receiving a fostering allowance, it may affect your entitlement to JSA.
  
  

If you're unsure what you’re entitled to, our team can help or point you to the right guidance. And many experienced foster carers are more than happy to share what they’ve learned along the way.

♿ Disability Benefits for Foster Children

If you're caring for a child with a disability, you may be able to claim Disability Living Allowance (DLA) on their behalf through your local authority. They’ll usually agree this as part of a care plan and help make sure any special needs—like home adaptations—are covered.

State Pension & National Insurance

Foster carers don’t miss out when it comes to pensions.

While you won’t get automatic National Insurance (NI) contributions through a traditional job, you can still claim NI credits that count toward your State Pension.

You just need to:

1. Be an approved foster carer for at least one week in a tax year.
2. Submit a simple form (CF411A) once a year.
3. Include a letter from us confirming your approved status.

This helps you build up your full pension even while fostering full-time.

Need Help Understanding It All?

If benefits and pensions feel complicated—we understand. But you’re not on your own.

• Our team is always happy to chat things through.
• Once you join Wholistic as a foster carer, you’ll also get free membership to The Fostering Network, which includes expert helplines and advice.

You don’t have to figure it all out at once. We’re here to help you every step of the way.

Ready to Take the Next Step?

If you’d like to learn more about fostering and how it works alongside benefits and pensions, get in touch. Ask for a call back, and someone from your local team will talk you through what’s possible and answer any questions.

Fostering might just be the most rewarding thing you’ll ever do—and we’ll make sure the support is there when you need it.