Ceredigion council to boost foster carer allowances
Council proposes to raise weekly foster allowances to £560 and offer full council tax relief, costing £922,000 annually.
Ceredigion County Council has agreed to raise foster‑carer allowances and consider full council‑tax relief for those caring for looked‑after children.
At the cabinet meeting in October, councillors voted to adopt a new allowance model that would lift weekly payments from an average of £290 to £560, based on 2026/27 price levels.
“The underlying basis of the proposal is to change the current multi‑component foster care allowances, which costs approximately on average £290 per week, to a new simpler set of foster care allowances, equivalent to £560 per week (at 2026/27 prices) and also to offer the equivalent of full council tax relief to Ceredigion foster carers,” the report read.
The move follows a sharp rise in the number of children in care, which climbed from 85 on 31 March 2021 to 149, according to a briefing by Deputy Leader Councillor Alun Williams.
“The number of children looked after has increased from 85 at 31 March 2021 to 149, creating increased demand for suitable local placements.” At the same time, local authority foster carers are being targeted by independent fostering agencies which can offer higher allowances.
Where carers transfer to an independent agency, the children already placed with them usually remain in that placement to preserve continuity, meaning the council can become liable for substantially higher external placement costs for the same care arrangement.”
Currently 47 council‑registered foster carers look after 58 children, with 34 carers residing within the county and 13 living outside its borders.
Under the existing scheme, weekly allowance costs total £16,984, equating to £883,000 a year.
The proposed structure would raise weekly outlays to £32,480, or £1.689 million annually – an increase of £806,000.
When combined with the anticipated full council‑tax rebate, the total annual cost of the two measures would be about £922,000.
Council officials note that the figure does not factor in potential savings from reducing reliance on independent agencies and residential placements, which currently cost roughly £60,000 and £410,000 per year respectively.
Modelling suggests each independent‑agency placement shifted to an in‑house foster arrangement could save around £30,000, while each residential placement converted could cut costs by approximately £380,000.
To achieve a financial break‑even, the council would need to convert about 19 independent agency placements and one residential placement to its own foster‑care system.
Cabinet members endorsed the recommendations, stating they would strengthen recruitment and retention of local authority foster carers and increase the availability of stable local placements for looked‑after children.
The proposals also aim to reduce dependence on more expensive independent fostering agencies and residential provision, aligning with the council’s longer‑term placement‑sufficiency duties.
By improving financial recognition for eligible carers, the council hopes to support a transition towards a not‑for‑profit children’s social‑care model.
Implementation is planned in two phases: the allowance uplift would take effect immediately, while the council‑tax relief would be subject to budget approval for the next financial year.
Stakeholders will monitor whether the anticipated placement conversions materialise, as the success of the funding boost hinges on achieving the projected savings.