Independent Fostering Agency (IFA) vs. Local Authority Fostering Pay (2026/27 UK Benchmark)

In its Children’s Social Care Market Study [3], the Competition and Markets Authority (CMA) reported that Local Authorities pay an average commissioning fee of £820/wk for an IFA placement (~£820–£910/wk on 2026/27 frameworks), yet basic council bands often pay only the £227–£266/wk statutory National Minimum Allowance [1]. Ofsted Good & Outstanding IFAs pass £465–£555/wk directly to the foster household (Child Maintenance Allowance + £220–£285/wk Professional Fee).

2026/27 UK Regional Allowance, IFA Pay & PAYE Salary Equivalence Matrix

2026/27 UK Regional Fostering Allowance, IFA Pay & HMRC HS236 Tax-Free Benchmark Table
UK Region 2026/27 GOV.UK NMA (11–15) [1] Typical Council Basic Band Ofsted Good/Outstanding IFA Avg Annual Tax-Free Upgrade [2] Gross PAYE Salary Equiv [6]
North West £227/wk (£176–£267/wk (2026/27 Rest of England NMA)) £255/wk £485/wk (£25,220/yr tax-free) +£11,960/yr £30,139/yr
Yorkshire & the Humber £227/wk (£176–£267/wk (2026/27 Rest of England NMA)) £248/wk £475/wk (£24,700/yr tax-free) +£11,804/yr £29,417/yr
West Midlands £227/wk (£176–£267/wk (2026/27 Rest of England NMA)) £260/wk £490/wk (£25,480/yr tax-free) +£11,960/yr £30,501/yr
East Midlands £227/wk (£176–£267/wk (2026/27 Rest of England NMA)) £252/wk £480/wk (£24,960/yr tax-free) +£11,856/yr £29,778/yr
Greater London £266/wk (£205–£309/wk (2026/27 London NMA)) £320/wk £555/wk (£28,860/yr tax-free) +£12,220/yr £35,195/yr
South East £255/wk (£195–£298/wk (2026/27 South East NMA)) £290/wk £525/wk (£27,300/yr tax-free) +£12,220/yr £33,028/yr
South West £227/wk (£176–£267/wk (2026/27 Rest of England NMA)) £258/wk £485/wk (£25,220/yr tax-free) +£11,804/yr £30,139/yr
East of England £227/wk (£176–£267/wk (2026/27 Rest of England NMA)) £278/wk £505/wk (£26,260/yr tax-free) +£11,804/yr £31,584/yr
North East £227/wk (£176–£267/wk (2026/27 Rest of England NMA)) £240/wk £465/wk (£24,180/yr tax-free) +£11,700/yr £28,695/yr
Wales & Scotland £229/wk (£208–£260+/wk Wales NMA · £177.68–£283.35/wk Scotland SRA (2026/27)) £265/wk £490/wk (£25,480/yr tax-free) +£11,700/yr £30,501/yr

Verified Primary Statutory & Market Sources (2026/27)

  1. [1] GOV.UK NMA 2026/27 (Department for Education): Statutory National Minimum Fostering Allowance (6 April 2026 – 5 April 2027) is £227/wk (Rest of England), £255/wk (South East), and £266/wk (London) for ages 11–15 (full age 0–17 range £176–£309/wk) covering child maintenance only. Official GOV.UK Source
  2. [2] HMRC Helpsheet HS236 (ITTOIA 2005 Part 7 Chapter 2): Qualifying Care Relief (QCR) exempts £19,690/yr fixed household relief plus £415/wk (child under 11) and £495/wk (child 11+) from UK Income Tax (£45,430/yr tax-free ceiling for 1 child aged 11+). Official HMRC HS236 Source
  3. [3] CMA Children’s Social Care Market Study (March 2022 Final Report): Reported an average weekly price paid by Local Authorities for an Independent Fostering Agency (IFA) placement of £820/wk (~£820–£910/wk across 2026/27 regional frameworks) with 19.4% average private IFA operating margins. Official CMA Source
  4. [4] Ofsted Social Care Register (491 Fostering Services) & National Statistics: Official inspection directory of 343 Independent Fostering Agencies (IFAs) and 148 Local Authorities in England (covering 42,190 fostering households & 56,345 approved foster carers). Official Ofsted Source
  5. [5] SI 2011/581 Regulation 28(13) & The Fostering Network Transfer Protocol: Statutory 28-day harmonised agency transfer procedure protecting settled child placements under Section 4.3 Welfare Continuity. Official Legislation.gov.uk Source
  6. [6] DfE National Minimum Standards (NMS 2011) & UK PAYE Equivalence: Standards NMS 15.1 (Safe Matching), NMS 20 (Carer Training), NMS 21.6/21.8 & Reg 17 (SSW Caseloads, 24/7 Support & Paid Respite), NMS 22.9 (LADO Support), NMS 26.2 (Carer Records), and NMS 28.1 (45p/mi Mileage & Allowances). Gross PAYE salary equivalent uses £12,570 Personal Allowance (0%) + 28% combined Basic Rate Tax (20%) & Employee Class 1 NI (8%).