Yes, most foster carers pay Council Tax, but some can receive a partial discount or a 100% exemption depending on their local authority and household circumstances.

There is still no automatic UK-wide Council Tax exemption for everyone who becomes an approved foster carer.

A foster carer may instead reduce their bill through:

This creates significant differences between areas. Some councils provide no specific foster-carer discount, while others effectively remove the entire bill for eligible carers.

Is There a National Council Tax Exemption for Foster Carers?

No. As of September 2026, becoming a foster carer does not automatically make a household exempt from Council Tax across England, Scotland or Wales.

In England, councils have discretionary powers that allow them to provide additional Council Tax discounts. Some authorities use these powers as part of their foster-carer recruitment and retention packages.

Northern Ireland is different because households pay domestic rates rather than Council Tax.

This means the answer to do foster carers pay council tax depends heavily on where the carer lives, which organisation approved them and whether they qualify for another reduction.

Is a National Council Tax Exemption for Foster Carers Coming?

Pressure for a national exemption has increased, but no nationwide scheme has been introduced.

The Fostering Network’s #CostOfFostering campaign has called for foster carers across England to be exempt.

Its research indicates that around a quarter of English local authorities provide some form of Council Tax exemption or support to foster carers, while approximately 16% provide a full exemption.

The campaign is partly driven by problems recruiting and retaining foster carers.

Its State of the Nations research found that almost 60% of foster carers had considered or were still considering resigning. It also estimated that England needed around 5,000 additional foster carers.

Financial pressures appear to be one factor. The organisation reported that 27% of foster carers were considering leaving because of financial difficulties.

There is also evidence that Council Tax support can influence recruitment.

Plymouth strengthened its foster-carer package by including Council Tax relief and reported benefits for retention and enquiries. Greenwich experienced increased enquiries following promotion of its Council Tax exemption.

Liverpool reported eight carers moving from independent fostering agencies to its in-house service after its exemption was introduced.

It calculated that recruiting ten additional in-house carers could offset the cost through lower reliance on more expensive residential placements.

For councils, this makes Council Tax relief more than simply a household benefit. It can form part of a wider workforce, placement-sufficiency and children’s-services cost strategy.

What Has the Government Said About a National Exemption?

Government Said About a National Exemption

The issue has now been considered directly by government.

In July 2025, MP Ellie Chowns asked whether the Department for Education planned to introduce a national Council Tax exemption for foster carers.

The parliamentary response confirmed that councils already had powers to offer local discounts or exemptions and highlighted the importance of sufficient financial support for foster carers.

The issue was subsequently raised during the government’s wider review of Council Tax administration.

The government’s consultation response, published on 15 April 2026, recorded foster carers among the groups respondents wanted considered for additional Council Tax disregards.

However, it did not introduce a foster-carer exemption.

Instead, the government said individual councils already have powers to provide additional discounts and that it would examine the feasibility and cost of changes to Council Tax disregards ahead of the next spending review.

Any future policy changes would require further consultation.

Separately, the Department for Education launched a consultation in July 2026 on updated fostering standards and guidance.

The policy direction places greater emphasis on fostering services reviewing the overall financial support and incentives they provide.

For now, carers should therefore work on the basis that no national exemption exists unless and until government policy changes.

Why Do Some Foster Carers Pay No Council Tax?

Local authorities can build Council Tax assistance into their fostering support packages.

Eligibility conditions vary. Councils may require carers to:

Importantly, not every scheme requires an application. Some councils identify eligible foster carers themselves and apply the reduction automatically.

Examples of Foster Carer Council Tax Support

The differences between local schemes show why carers should never assume that another council’s rules apply to them.

Council Example Of Support Important Condition
Thurrock Full Council Tax relief 182 qualifying fostering days and other conditions
Southend-on-Sea 100% up to Band D Eligibility assessed automatically
Westminster 100% hardship relief Extended to eligible foster carers
Wrexham 100% discount For qualifying council foster carers
Flintshire 50% discount Local fostering conditions apply
Medway £600 annual contribution Contribution rather than full exemption
Monmouthshire 30% subsidy Local foster-carer scheme

How Thurrock’s Scheme Works?

Thurrock provides one of the clearest examples of how detailed local rules can become.

Eligible carers must have provided foster care for 182 days, or 26 weeks, during the previous 1 April to 31 March period.

Those days do not have to be consecutive and do not have to relate to the same child.

Certain Staying Put arrangements can also count where continuing to support the young person prevented the household from accepting another placement.

Other important features include:

There is also an unusual cross-boundary arrangement.

A foster carer approved by Thurrock who lives outside the borough may still qualify under specified conditions.

The carer continues paying Council Tax to the authority where they live, while Thurrock can reimburse the cost through quarterly payments.

A break from fostering can also affect entitlement. If an approved carer pauses fostering without resigning for more than 30 days, Council Tax liability can restart from the 30th day of the break.

Anyone who believes they have been incorrectly charged under this scheme is directed to the fostering team rather than simply assuming the ordinary Council Tax department can resolve the matter.

Southend And Westminster

Southend-on-Sea provides a 100% exemption capped at the Band D charge for qualifying foster carers.

Its system does not require a separate application because eligibility is assessed and the reduction is applied automatically.

Westminster extended its existing 100% Council Tax hardship relief to include foster carers, with the arrangement applying from 1 April 2023. The council linked the policy to the wider need to recruit and retain foster carers.

These schemes demonstrate how local authorities can use Council Tax support strategically rather than relying solely on increases in fostering fees.

Do Foster Carer Council Tax Rules Differ Across The UK?

Yes. Council Tax is not administered identically throughout the UK.

England

Foster carers normally remain liable unless they qualify for a local scheme, Council Tax Reduction, a statutory discount or another discretionary reduction.

Local foster-carer support varies considerably between councils.

Wales

There is no automatic national foster-carer exemption. However, individual Foster Wales local authority services may offer Council Tax incentives.

Examples include full support in Wrexham and a 50% discount in Flintshire.

Scotland

Scotland operates its own Council Tax Reduction framework.

Low-income households may receive substantial reductions depending on income, savings, household circumstances and benefits.

Foster-carer status itself does not create a general automatic national exemption.

Northern Ireland

Northern Ireland does not charge Council Tax.

Domestic properties normally pay domestic rates instead. Foster carers receiving Universal Credit may be able to qualify for Rate Rebate depending on their circumstances.

Does A Foster Child Affect The Single-Person Discount?

Does a Foster Child Affect the Single-Person Discount

Usually not while the foster child is under 18. A standard full Council Tax bill assumes at least two countable adults live in the property. Where only one adult is counted, the household can normally receive a 25% Single-Person Discount.

A foster child aged under 18 does not count as another adult.

For example, a single adult who already receives the 25% discount would not normally lose it simply because a 12-year-old foster child moves into the home.

A separate local foster-carer discount could potentially reduce the bill further, depending on how the council’s scheme operates.

What Happens When A Fostered Young Person Turns 18?

The Council Tax position should be reviewed when a young person reaches 18, particularly where they continue living with their former foster carer through Staying Put or a similar arrangement.

The young person might still be disregarded if they:

Rules for care leavers vary between UK nations and, in England, between councils.

Foster carers should therefore notify their council rather than assuming the existing Single-Person Discount will automatically continue.

Can Foster Carers Claim Council Tax Reduction?

Yes. Council Tax Reduction is separate from a council’s foster-carer incentive.

It is usually means-tested and can consider factors such as:

Fostering payments should be declared where requested. Foster carers should not leave them off an application simply because the same income may receive favourable Income Tax treatment.

The council will determine which payments are counted or disregarded under its own Council Tax Reduction rules.

Do Independent Fostering Agency Carers Get Council Tax Discounts?

Not automatically.

One of the biggest distinctions between local schemes concerns who approved the foster carer.

Some Council Tax incentives are restricted to people fostering directly for that local authority. A foster carer registered with an independent fostering agency may therefore live next door to a council-approved carer but receive different support.

IFA carers may still qualify for ordinary Single-Person Discount, Council Tax Reduction or other statutory support.

They should check with both their fostering agency and the council issuing their bill.

Do Foster Carers Pay Income Tax Or National Insurance?

Council Tax treatment is separate from the tax treatment of fostering income.

Foster carers can use Qualifying Care Relief, which provides a tax-free qualifying amount made up of a household fixed amount plus weekly amounts for each person cared for.

For the 2026/27 tax year, the qualifying amounts are:

Element 2026/27 Amount
Annual Household Fixed Amount £20,440
Child Under 11 £435 Per Week
Child Aged 11 Or Over £515 Per Week
Adult In Qualifying Care £515 Per Week

Where qualifying fostering receipts do not exceed the calculated qualifying amount, HMRC can treat the profit from qualifying care as nil for Income Tax and Class 4 National Insurance purposes.

Where taxable self-employed profits remain, normal self-employed National Insurance rules may become relevant.

For 2026/27, Class 4 National Insurance generally applies to qualifying self-employed profits above £12,570, at 6% up to £50,270 and 2% above that level.

Foster carers can also apply for National Insurance credits that may help protect their State Pension record. This can be particularly important during periods where fostering income does not produce sufficient National Insurance contributions.

How Can Foster Carers Check Their Council Tax Entitlement?

The safest approach is to check both the fostering service and the Council Tax authority because the two departments may operate different parts of the scheme.

Carers should:

Automatic schemes such as Thurrock and Southend show why carers should not assume every authority requires a conventional application.

Equally, carers should not stop paying simply because someone from a fostering service says they appear eligible. The Council Tax account should show the reduction or the council should formally confirm reimbursement.

What If A Foster Carer Cannot Afford Council Tax?

Council Tax arrears should be dealt with quickly because additional recovery and enforcement costs can increase the debt.

A carer experiencing financial difficulty should contact the council and ask about:

Where financial pressure could affect the stability of a placement, the supervising social worker should also be informed. Fostering services may operate additional financial support that is not obvious from the main Council Tax pages.

Final Takeaway

Most foster carers still pay Council Tax in 2026 because there is no UK-wide exemption based solely on being a foster carer.

However, the national picture is increasingly fragmented. Some councils provide fixed contributions, others offer partial reductions, and authorities including Thurrock and Southend operate schemes capable of removing the full eligible charge.

Campaigners continue to argue for national consistency, particularly because Council Tax relief may help local authorities recruit and retain carers and reduce reliance on more expensive external or residential placements.

The government’s April 2026 Council Tax review did not introduce a national foster-carer exemption. For now, eligibility therefore remains heavily dependent on postcode, fostering provider and household circumstances.

FAQs

Do Foster Carers Get A 25% Council Tax Discount?

Not automatically. A 25% discount normally applies where only one adult is counted, although a council may operate a separate foster-carer scheme.

Can Foster Carers Get A 100% Council Tax Discount?

Yes, in some areas. Councils including Thurrock, Wrexham and Southend publish arrangements providing full or effectively full support to eligible carers.

Is Council Tax Relief Automatic For Foster Carers?

It depends on the council. Thurrock and Southend are examples where qualifying support can be applied automatically, while other authorities may require an application.

Can A Single Foster Carer Keep The Single-Person Discount?

Usually yes if the foster child is under 18 and no other countable adult lives in the property.

Does Foster Allowance Count As Income For Council Tax Reduction?

Treatment can depend on the local Council Tax Reduction scheme and type of payment. Declare requested fostering income and allow the council to apply the appropriate disregard.

Do Independent Agency Foster Carers Qualify?

Possibly, but many foster-specific local schemes are limited to carers approved directly by the council. General Council Tax reductions may still be available.

Do Kinship Foster Carers Receive Council Tax Relief?

There is no automatic UK-wide entitlement. However, some schemes explicitly include approved connected-person or family-and-friends foster carers, including Thurrock’s scheme.

Will Foster Carers Get A National Council Tax Exemption In The Future?

No national exemption has been confirmed. The government recognised proposals for additional disregards in its April 2026 consultation response but said further changes would require feasibility work, funding consideration and additional consultation.