Spring budget boost for foster carers

We’re thrilled to see foster carers across the UK recognised in yesterday’s Spring budget, with the government pledging to significantly increase the tax threshold on income to £18,140.

The announcement by Chancellor Jeremy Hunt is a huge step forward for foster carers and the children and young people in their care. We are thankful to the Chancellor for recognising the important work of the foster care network.

The government is increasing the amount of income tax relief available to foster carers from April 2023. The threshold of income at which qualifying carers begin paying tax on care income will be increased from £10,000 to £18,140 per year plus £375 to £450 per person cared for per week for 2023-24 and these thresholds will then be index-linked, representing a tax cut worth approximately £450 per year on average.*

We’re proud and encouraged by the collaboration between organisations to ensure the message to government was clear and cohesive. We have proactively supported the movement led by Nationwide Association of Fostering Providers (NAFP), Children’s Services Development Group (CSDG) and Foster Talk, who have been committed in driving this conversation forward, keeping the valuable work of foster carers on the government agenda.

In addition to this, Virgin Media announced last week that they are the latest lender to include foster carers income in mortgage applications using its normal self-employed policy. Owning your own home and being a foster carer is now more achievable and we welcome the news that foster carers are getting the national support they deserve.

Director of Olive Branch Fostering, Joanne Sharples says:

“We are thrilled with this news, and we trust this change will have a positive impact for years to come. We’re hopeful the increase in tax relief, alongside the increasing awareness of the importance of foster carers will encourage more people to consider fostering in the future.”

Olive Branch Fostering wouldn’t be what it is without our inspiring foster carers. Are you considering fostering? Do you have any questions about the latest budget announcement? We’d love to hear from you.

*www.gov.uk