HC Deb 24 January 1995 vol 253 cc175-6W
Ms Coffey

To ask the Secretary of State for Health how many children are currently placed with non-relatives under the arrangements for the Placement of Children (General) Regulations 1991; and in what percentage of these placements a taxable fee is being paid directly to the non-relative or to an agency.

Mr. Bowis

Information collected centrally relates only to children looked after by local authorities. At 31 March 1993 approximately 43,000 children looked after by local authorities were placed in foster care with non-relatives or in residential accommodation, and would have been subject to these regulations. Of these, 27,000 were in foster care. The total includes about 2,000 children with agreements for a series of short-term placements, who will not all have been so placed on that date.

Where placements are with a foster family, the percentage of foster carers that receive a taxable fee—reward payments—is very small.

In all cases where placements are with an agency, the fee, less expenses accepted by the Inland Revenue, would be regarded as taxable income.

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