Do Foster Carers Pay Council Tax?

Becoming a foster carer is one of the most impactful things you can do. It allows you to provide a supportive and safe home for children who’ve often had a very challenging upbringing. But bringing up children is expensive. It’s for this reason, one of the most common questions that people who are considering fostering children ask is, do foster carers pay Council Tax?

In general, most foster carers do have to pay Council Tax, but there are some Local Authorities that provide a special exemption. For foster carers who live in an area without an exemption, there are some options to potentially reduce the amount of Council Tax you need to pay.

In today’s article we’ll explain some of the details of these reductions you can apply for, and also provide some information on the overall financial support that is available to foster carers.

Can Foster Carers Get a Council Tax Reduction?

So whilst foster carers generally do have to pay Council Tax, there are a number of ways that they can potentially receive a deduction on the amount they have to pay. 

Council Tax Reduction

A Council Tax Reduction is a discount to your Council Tax bill that can be up to 100% of the cost. This reduction replaced the Council Tax Benefit which was paid to eligible claimants up until 2013. 

Council Tax is effectively a means tested cost, and those who are on low incomes or on certain benefits can be eligible for this reduction. Some of the ways you can potentially qualify for a Council Reduction is if:

• You receive Income Support, Jobseekers Allowance, Universal Credit or Employment and Support Allowance.

• You receive Guaranteed Credit or Pension Credit.

• You are on a low income.
  
  

A key point to keep in mind is that fostering allowances are not classed as income and therefore they are not taken into account when considering your eligibility for a Council Tax Reduction. This is because the fostering allowances are designated for the costs of the foster children, and they can be removed at any time.

Households with no children under 5 can get a Council Tax Reduction of up to 80% if eligible, and those with children under 5 or can get a reduction of up to 100%.

Discretionary Council Tax Reduction

If you believe you are suffering from financial hardship and don’t meet the criteria for a standard Council Tax Reduction, you can apply to the Local Authority for a Discretionary Council Tax Reduction. As the name suggests, this is at the discretion of the Local Authority, and they can elect to offer a temporary or permanent reduction to your Council Tax.

Disability Council Tax Reduction

If you are fostering a child who has a disability, you could be eligible for a Disability-related Council Tax Reduction. This allows for the fact that a larger home is often required to provide suitable accommodation for a disabled person, as opposed to someone of the same age without a disability.

Examples of why the increased space may be needed include:

• Access to an additional bathroom or kitchen for the disabled person.

• The need for a room that is predominantly used by the disabled person. This could be a downstairs room that is being used as a bedroom or a room that has been adapted to suit the needs of the disabled person.

• Enough floor space so that a wheelchair can be used inside.

To apply for any of these reductions, you should contact your Local Authority. If you’re unsure of who your Local Authority is, you can enter your postcode to find it here.

Can Fosters Carers Get Housing Benefit?

Housing Benefit is paid to people who are renting their homes. It’s designed to help with the costs of rent for those who are on low incomes, benefits or unemployed. Housing Benefit is one of the benefits being replaced by Universal Credit, and new applications for Housing Benefit are only available in limited circumstances.

With that said, the rules for foster carers claiming Housing Benefit are the same as for any other means tested benefits. When it comes to any means test for foster carers, the foster allowances that you receive should be disregarded. This means that your eligibility for benefits will be based on your other income and assets, not the amounts you receive for being a foster carer.

What Other Financial Support do Foster Carers Get?

When you become a foster carer you’re paid an income known as a fostering allowance. The amount you get paid will depend on your experience with fostering, as well as the Local Authority you are fostering for.

According to the National Fostering Group, you will be paid around £22,000 per year, tax free, to foster a child. This can increase significantly once you have fostering experience or if you’re fostering multiple children. 

Summary

Becoming a foster parent is a very big decision but one that can be immensely rewarding. As a foster carer, you will be eligible for fostering allowances which provide income to support the children in your care. 

These allowances are not classed as income, so your eligibility for other benefits will not be impacted by any income you receive for fostering children. Depending on the level of other income and assets you receive, you could be eligible for various benefits, as well as potentially receiving a Council Tax Reduction.

A Council Tax Reduction could reduce your Council Tax by 80% or even 100%, if you are on certain types of benefits or a low income. You can also receive a Disability Related Council Tax Reduction if one of the children you are caring for has a disability.