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Allowances: Foster Care

Volume 460: debated on Thursday 24 May 2007

To ask the Chancellor of the Exchequer whether he plans to revise the level at which foster care allowances are liable to be taxed to take account of recent changes to the fostering allowance system. (138602)

When it was introduced in 2003, the income tax exemption for foster carers was purposely set at a high level to ensure that the vast majority of carers would qualify for relief. There currently are no plans to revise the level at which foster care allowances are liable to be taxed.

DFES have recently introduced new national minimum allowances for foster carers, but these are still well below the level at which such income becomes liable to income tax.