The Fostering Network are frequently asked by fostering services and foster carers for guidance regarding how much pocket money a carer should give the children they care for. The Fostering Network do not produce specific guidance on pocket money rates however we recognise that foster carers have an important role in educating and supporting children and young people in the responsible use of money, including pocket money, short term and long-term savings. This is particularly important for older children and young people preparing for independence. While there is no one answer, below are some points to consider when developing a policy around pocket money provision.
How of much of the foster care allowance should be used as pocket money?
The Governments across the UK advises that all foster carers should receive a foster care allowance to cover the cost of caring for a child. The Fostering Network continue to campaign for national minimum fostering allowances in Scotland. In England, Wales and Northern Ireland the minimum allowances rate guidance is reviewed annually. Links to nation specific information can be found here:
While there is breakdown for Northern Ireland, including a percentage for pocket money, in Scotland, England and Wales, the Governments do not provide advice on how this allowance is spent.
The Fostering Network recommend:
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that a percentage is used for personal spending which should include an amount for pocket money for the child
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each fostering agency to develop their own Pocket Money policy so that foster carers and children and young people receive a consistent approach to pocket money.
Principles to consider when considering developing a pocket money policy:
Receiving pocket money is beneficial for all children and young people. It promotes a sense of being treated the same as other children. It gives a level of choice and control regarding decisions children make, encourages independence and promotes the understanding of the value of money, and can support in developing lifelong budgeting skills.
Children and young people should be aware of the amount of pocket money they should expect and be allowed to spend it as they choose, with appropriate adult guidance. The amount should increase with age. Children should be encouraged to use a short-term savings account for any money they have left over which they can use to save for more expensive items they wish to purchase or to save to use for example for holiday spending money. They should not be expected to buy personal care items or other household expenses from their pocket money as this is provided for within the foster care allowance, unless this is agreed as the young person moves to independence.
They should not be expected to use pocket money to contribute to higher purchase costs, such as paying towards the costs of a holiday, and pocket money should not be withdrawn or used as a consequence or punishment.
In terms of normalising family life for children it would be unfair if some children received either more or less than the other children in the home especially where their ages are similar. Therefore, discussions with foster carers need to take into account the pocket money paid to other children in the household and some parity reached.
We suggest that the amount should not exceed the element for personal needs within any benefit payment a young person could expect if they were unemployed. This is important because it is the responsibility of both social workers and foster carers to help ensure a smooth transition to independent living after foster care. It would be unhelpful to this process if a young person's pocket money enabled them to enter into a lifestyle which was not possible if they later had to live independently on limited income such as education grants or welfare benefits.
Discussions about the amount of pocket money should include the foster carer, social worker and if old enough the child and young person, and this should be agreed at the start of the placement and reviewed regularly as the child gets older.
- Further resources
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Pocket money index 2021 - Rooster money, NatWest
How to teach your child about pocket money - Barclay's Money Management
Financial Literacy For Kids - HSBC UK
Financial skills for young people - Lloyds Bank Academy
How much pocket money should we give our kids? - Go Henry
Created: December 2022
