Allowances paid by Local Authorities
All payments that a foster carer receives are taken into account when determining whether they need to declare earnings to the tax office.

The total payments received in a year (or pro-rata) are compared to the exemptions allowed and any difference above this limit should be declared to the tax office, and tax paid through ‘self-assessment.

The national minimum allowance rates for 2009/10:
Weekly rates
 Babies Pre-primary Primary Secondary Secondary (16-17)
 Base £106 £108 £119 £137 £159
 South East £117 £120 £134 £152 £179
 London £122 £125 £140 £158 £186

The national minimum allowance rates for 2010/11:
Weekly rates
Babies Pre-primary Primary Secondary Secondary (16-17)
 Base £109 £111 £122 £140 £164
 South East £120 £123 £137 £156 £184
 London £126 £129 £144 £163 £191