Department for Education written question – answered at on 12 April 2016.
Tim Loughton
Conservative, East Worthing and Shoreham
To ask the Secretary of State for Education, what discussions she has had with the Chancellor of the exchequer on (a) the tax treatment of foster carers who claim tax benefit and (b) the qualification of such people for other benefits.
Edward Timpson
Minister of State (Education)
Fostering income is already subject to a specific tax relief system consisting of a fixed annual threshold of £10,000 per fostering household and a weekly threshold based on the number of children in placement and their age. More information is available on GOV.UK: https://www.gov.uk/foster-carers/help-with-the-cost-of-fostering
Foster carers can access working tax credit, where they meet the eligibility criteria, as fostering is treated as work for these purposes.
Under the benefits system, fostering income (allowances and fees) is fully disregarded for the purposes of calculating entitlement to welfare benefits. For the purposes of calculating income-related benefits, foster children are not included in the benefit assessment.
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.
