Understanding how a therapeutic placement is funded can help you go into it with your eyes open.
How Local Authorities Pay for Placements
Funding for therapeutic placements is typically provided by the children’s services budget within the local authority’s children’s care standards in Wales. The placing authority is usually the local authority responsible for managing the budget for children in care within that authority.
The Basic Allowance and the Enhanced Fee
As mentioned previously the foster carer will receive a basic amount for the child’s day to day needs. This is then topped up by an enhanced amount for the therapeutic needs of the child. This amount recognises the skill required for the child’s needs and the intensity of the work with them.
What the Therapeutic Fee Is For
The enhanced fee for the therapeutic fostering placement typically includes funding for the foster carer’s training as well as the child’s and / or young person’s therapy sessions plus any additional professional input required by the child / young person’s needs. The agencies and the local authority should set this out in writing clearly and set out how the carer can access services.
How Independent Agencies Set Rates
The fee that an Independent Fostering Agency pays above the local authority’s basic rate for a foster placement can also be topped up even further for a therapeutic foster placement. It is worth checking the fee structure and the support that the agency purchases with the foster carer’s money before agreeing to place a child with them. If you want Therapeutic Fostering Wales, https://saferfostering.org.uk/therapeutic-fostering/ is a good place to start.
Questions to Ask Before You Agree
Before agreeing the placement, ask for a full breakdown of the fees in writing and clarify who pays for the child’s therapy sessions and whether there is a cap. Additionally, ask what the review schedule is for the enhanced element and how the rate may change at review.

This will ensure you are well-informed when commencing a therapeutic fostering placement.
