NCERCC working note – If fostering income rises what are effects on RCC and RCCWs?
NCERCC sharing its thinking in advance of Public Accounts Committee 17th November 2025
Thesis
To compare the cost of Foster Care placement and that of Residential Child Care placement is to omit potential future key factors.
Hypothesis
An unrecognised, unconsidered, emerging, urgent, threatening, unasked question?
Premise
Government need to be clear about costs and consequences
Factors – foster carers
- Declining numbers of foster carers + increasing age demographic.
- Inability to attract new entrants
- Minister announced new measures for foster care to supply choice for and by children.
- Commentators observing key factor is foster care income, necessary to be paid more
Conclusion
It is inevitable foster care income will rise.
Factors – children
- Needs of children increasing in difficulty and frequency, multiple and co- occurring are not the traditional cohort of children fostered.
Factors – ideological/political
- Ideological and financial desire to not place in residential settings and to place in family based care i.e. fostering, kinship, adoption.
- Rationale – family experience lionised and reduce costs.
Conclusion
To meet needs of children, foster carers will need greater training and support that will add to costs and acquiring such knowledge and experience takes time.
Reflections – strategic thinking
- To attract foster carers will need increased income.
- The only social care group with readily transferable knowledge and skills are children’s homes workers
So, the question: If foster carers income rises what is the likely effect on residential child care?
Analysis
Income – children’s homes workers
Hays analysis suggests a salary range of £25,000 to £28,000 for children’s homes workers
Income – fees paid to fostering households.
Essex CC Foster carer fees and allowances 2025 – 2026.pdf
Kent CC GUIDE TO TAX AND BENEFITS WHEN YOU FOSTER A CHILD
PLUS there are additional Grants and Payments for foster carers NOT AVAILABLE FOR CHILDREN’S HOMES WORKERS
Depending on the fostering service (local authority or independent fostering agency), foster carers may be eligible for extra,
- Holiday/Festival/Birthday Allowances: Some services provide annual grants for holidays (often equivalent to two weeks’ allowance), birthdays, and religious festivals.
- Start-up/Equipment Grants: Emergency payments may be available if a child arrives with very limited clothing or specific immediate needs.
- Respite Care: Carers typically receive a number of weeks of paid respite each year.
- Bridging Retainer Payments: Some services offer retainer payments to provide financial security during gaps between placements.
- Exceptional Expenses: Foster carers may be able to increase their tax threshold (see below) for “exceptional expenses” that are reimbursed by the fostering service, such as significant sensory equipment for a disabled child.
- Council Tax Discounts/Refunds: Some local authorities offer full or partial council tax refunds to their foster carers.
- Discounts and Perks: Many fostering services provide access to schemes like the Blue Light Card and the Max Card, offering discounts on high-street retailers, days out, attractions, and leisure centres.
Conclusion – effects on RCCWs
RCC usage has been increasing to meet increasing needs and lack of fostering supply
To increase foster care supply requires foster carer income is raised
- Foster care costs increase
- Residential Child Care workforce attracted to foster care
- Residential workforce decreases and supply of children’s homes decreases
Conclusion – effects on RCC
- Lack of supply of Residential Child Care
- Inability to place increases further
- Costs of unregulated placements and DOLS increases
Overall potential hypothesis
Current policy proposals lead to the following situation: more children in solo places (f/c + unreg/DOLS) + increased expenditure
Remedy
- Rethink children’s social care strategy necessary and urgent
Pause Children’s WellBeing Bill
