Skip to content
Company Logo

Money Matters and Insurance

Supported lodgings hosts will receive a fee for the placement of the young person. If you have any queries about allowances or if you think you have been under or over paid, contact the finance section in the Service as soon as possible.

Payments to you are made in arrears, direct to your bank or building society.

You can find the allowance booklet for Foster Carers and Supported Lodgings hosts in our Local Resources

Any extra costs incurred by you which are not covered in the supported lodgings allowance as a host should be discussed and agreed with the Service and the young person’s social worker.

The young person must be aware of the amount they should be getting and what the allowance should be used for. Over the age of 18, the young person will be expected to contribute £20 from their benefits allowance and £80 from their housing benefits.

Expenses are paid by the Service for making trips to hospital; attend reviews, contact arrangements or other exceptional travel expenses. This will be at a set rate of 45p per mile.

Discuss with your Supervising Worker, any requests for specialist equipment. We offer guidance on the amount carers can claim for initial set up costs.

The cost of getting birth certificates (and copies) and passports will be met by the Service if this is agreed with the young person’s social worker or personal advisor.

Information is also available from the GOV.UK website about passports.

There’s a fixed tax exemption of up to £10,000 per year (less if for a shorter period) which is shared equally among any carers including supported lodgings hosts in the same household. This means you don’t have to pay tax on the first £10,000 income you make from being a supported lodgings host.

On top of the £10,000 exemption, you also get tax relief for every week (or part week) you support a young person.  This means you don’t have to pay tax on some of your earnings over £10,000.

All payments made to you will be itemised. You should keep this information as a record for income tax purposes.

Please see: Qualifying Care Relief for Carers (HMRC).

You may be eligible for National Insurance Credits which count towards your State Pension.

 If you are giving the young person their weekly allowance, the young person should sign for money  that they are given.

You must inform your Home, Building and Contents and Car insurance company once you have been approved as a supported lodgings host.

Tell them about the numbers of young people and ages you expect to take. You should ask the insurance companies for written confirmation that they have included young people in placement on your policies. A copy of these letters should be given to your Supervising  Worker.

Last Updated: October 31, 2023

v24

To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.