As part of the next stage in our #CostOfFostering campaign, The Fostering Network is campaigning for all foster carers to be exempt from paying council tax in England. Not only will this provide foster carers with financial relief, it will also emphasise the Government's commitment to valuing foster carers. They are the backbone of our care system and provide stable, loving homes for some of the UK’s most vulnerable children and young people, 24 hours a day, 7 days a week.
Currently a quarter of local authorities in England offer some form of council tax exemption, and 16% a full exemption. However, we would like to see all foster carers benefit equally from a national council tax exemption.
Why do we need a campaign?
Our State of the Nations report 2024 revealed that almost 60% of foster carers have considered, or are still considering, resigning. We estimate that 5,000 more foster carers are needed in England. Therefore, it is crucial fostering services are able do everything they can to retain the skilled foster carers they already have as well as recruit new ones. Council tax exemptions offer a practical and meaningful way to do both.
Our campaign so far
In July 2025, the UK Government released a consultation on modernising and improving the administration of council tax in England, which set out the Government’s proposals to review council tax disregards or exemptions. We responded to the consultation asking the Government to include foster carers within the new disregards, meaning all foster carers in England would be exempt from paying council tax.
You can read our full response here.
We also asked recruitment hubs and members of our Foster Carer Association forum to respond to the consultation with their views and provided a template to aid their response.
To help with our response to the consultation, we spoke to several local authorities who already provide council tax exemptions to their foster carers (including some whose foster carers don’t live in their area). They were resoundingly positive about the impact providing their foster carers with exemptions was having and reported a range of benefits which we share below.
Improved retention
Our State of the Nations 2024 report found that 21% of fostering services identified improving finances, including council tax exemptions, as really effective in retaining foster carers. It also found that 27% of foster carers are considering resigning from fostering due to financial difficulties and find that the payments they receive for fostering haven’t kept up with the cost of living.
Plymouth Council enhanced its support for foster carers by including council tax exemptions in its new offer. They found this increased the overall financial support for foster carers who chose to foster with them, aiding retention.
Increased recruitment
Following the launch of their new offer, Plymouth Council has seen greater engagement across communication channels including local press and newsletter. As a result, they have had a notable rise in enquiries, leading to increased recruitment of foster carers. Greenwich Council also experienced a spike in enquiries following a targeted campaign that highlighted council tax exemptions for their foster carers.
Liverpool City Council saw eight foster carers move from independent fostering agencies to in-house fostering services, almost hitting their target of recruiting ten additional foster carers within the first year of the exemption being introduced. They calculated that ten additional foster carers would offset the cost of introducing the exemption through savings achieved by reducing the reliance on costly residential care placements and increasing the use of in house fostering.
Greater feeling of being valued and respected
In our State of the Nations survey, 54% of foster carers cited the lack of respect they experienced from other professionals as a key reason for considering resigning from fostering. A council tax exemption is a meaningful way to show foster carers they are truly valued and respected. When foster carers feel valued and supported in their role, they are more likely to continue providing care long term, thereby improving stability and achieving better outcomes for the children in their care.
Liverpool City Council found that providing their foster carers with council tax exemptions had a positive impact on morale, helping carers feel more valued in their vital role.
Next steps for the campaign
We would like to see a UK-wide exemption set, and funded, by the nations’ Governments. This would mean that every foster carer across the UK would receive the same amount of support, no matter where they live and which service they foster and avoid it being a postcode lottery.
Evidence we have collected from local authorities already doing this shows a council tax exemption will pay for itself given the positive effect it has on recruitment and retention, and the savings incurred from children living in foster homes instead of residential.
We await the response to the UK Government’s consultation in England and a potential announcement in the Autumn Budget. In the meantime, we will be working with as many local authorities as possible in England to encourage them to exempt their foster carers from council tax.
Contact us if you would like to find out how your council can exempt foster carers [email protected].
How can you be a part of the campaign?
Write to your MP and ask them to support a national council tax exemptions for foster carers.
We have created a document to help aid your email including all the reasons why foster carers should be exempt from council tax - template letter to MP.
You can find your MP and their contact details here: Find your MP - MPs and Lords - UK Parliament
If you work for a local authority fostering services and would like to find out how your council can exempt foster carers, please email us at - [email protected]
