Do Foster Carers Have to Pay Council Tax? Discounts & Exemptions

At Towerstone Accountants we provide specialist property accountant services for property owners landlords and individuals dealing with council tax and property related charges across the UK. This article has been written to explain do foster carers have to pay council tax in clear practical terms so you understand what applies to your situation. Our aim is to help you avoid confusion stay compliant and make informed decisions.

This is a very common question from both new and experienced foster carers, and the confusion is completely understandable. Council tax rules are complex at the best of times, and fostering sits in a grey area between work, caring, and family life. Some foster carers pay full council tax, some get reductions, and a small number pay nothing at all. The difference depends on who lives in the property, how the household is structured, and how the local council applies the rules.

The short answer is yes, foster carers usually still have to pay council tax, but there are important discounts and exemptions that can apply, and in some cases these can significantly reduce the bill. In rare situations, a full exemption may apply.

In this guide I will explain how council tax works for foster carers in the UK, when reductions apply, how foster children are treated for council tax purposes, and what you should do if you think your bill is wrong. This is written in clear UK English and reflects how council tax is applied in practice across England, Scotland, and Wales.

The Starting Point: Council Tax Is Based on Adults

Council tax is charged on residential properties and is based primarily on the number of adults living in the household.

The key rule to understand is this:

Children are not counted as liable adults for council tax purposes.

This principle is central to how fostering is treated.

Are Foster Children Counted for Council Tax?

No.

Foster children are not counted as adults for council tax purposes, regardless of their age.

Even if a foster child is 16 or 17, they are still treated as a child, not as an adult resident.

This means foster children:

Do not increase the council tax bill

Do not remove discounts

Do not affect single person status

For council tax, foster children are effectively invisible.

Do Foster Carers Have to Pay Council Tax at All?

In most cases, yes, foster carers still have to pay council tax on their home.

Being a foster carer does not automatically exempt you from council tax.

However, what you pay may be reduced depending on your household composition.

Single Foster Carers

If you are a single adult foster carer and the only other people living in your home are foster children, you are usually entitled to the single person discount.

This discount is 25 percent.

This is because:

You are the only adult counted for council tax

Foster children are disregarded

In practice, this means many single foster carers pay 75 percent of the normal council tax bill.

Foster Carers Living With a Partner

If you live with another adult, such as a partner or spouse, and you are both adults counted for council tax purposes, the single person discount does not apply.

In this situation:

You normally pay full council tax

Foster children still do not count as adults

The presence of foster children does not increase the bill

Many couples who foster pay the same council tax as any other two adult household.

What If One Adult Is Disregarded?

Council tax discounts depend on whether adults in the household are disregarded persons.

Some adults are ignored for council tax counting purposes, such as:

Full time students

Certain apprentices

People with severe mental impairment

Live in carers in specific circumstances

If one adult is disregarded and the other is a foster carer, the household may still qualify for a 25 percent discount.

Each situation must be assessed individually.

Are Foster Carers Considered Live-in Carers?

This is a common misunderstanding.

Foster carers are not usually treated as live-in carers for council tax purposes.

The live-in carer disregard applies when someone is caring for a disabled person who owns or rents the property, and specific conditions must be met.

Fostering does not usually meet this definition, because the foster child does not own or rent the home and the care arrangement is different in law.

Do Foster Carers Ever Get Full Council Tax Exemption?

In very limited circumstances, yes, but this is rare.

A full exemption may apply if:

All adults in the household are disregarded

There are no countable adults at all

For example, if a property is occupied only by:

Foster children, and

Adults who are all disregarded for council tax

In most real-world fostering situations, there is at least one countable adult, which means some council tax is payable.

Does Fostering Income Affect Council Tax?

No.

Your fostering allowance or income does not affect council tax calculations directly.

Council tax is based on:

Property band

Number of countable adults

Disregards and exemptions

It is not means tested in the way Universal Credit or Council Tax Reduction schemes are.

However, your income may affect whether you qualify for Council Tax Reduction, which is a separate system.

Council Tax Reduction and Foster Carers

Council Tax Reduction, sometimes called Council Tax Support, is run by local councils and is means tested.

Foster carers may qualify for Council Tax Reduction if:

Household income is low

Fostering income is treated favourably

The local council’s scheme allows disregards

Many councils treat fostering allowances as partially or fully disregarded when assessing income, but rules vary by area.

This means foster carers on modest incomes may see their council tax reduced further.

Differences Between Councils

One of the most frustrating aspects of council tax is that local councils have discretion in how some rules are applied.

This means:

Discounts are set nationally

Disregards are set nationally

Council Tax Reduction schemes vary locally

Some councils are very familiar with fostering arrangements and apply rules smoothly. Others may misunderstand the situation initially.

If your bill looks wrong, it is worth challenging it.

What About Foster Carers in Scotland and Wales?

The core principles are similar across the UK, but there are some differences in administration.

In Scotland, council tax discounts still apply based on the number of adults, and foster children are disregarded.

In Wales, similar rules apply, but Council Tax Reduction schemes may differ slightly in how fostering income is treated.

Always check with the local authority where the property is located.

Foster Carers and Banding of the Property

Being a foster carer does not change the council tax band of the property.

Council tax banding is based on property value at a set historical date, not on how the property is used.

If you believe your property is in the wrong band, that is a separate issue and can be challenged, but fostering itself does not affect banding.

What If the Council Gets It Wrong?

It is not uncommon for councils to issue incorrect council tax bills to foster carers, especially where systems do not clearly distinguish foster children from other residents.

Common errors include:

Removing single person discount incorrectly

Counting foster children as adults

Failing to apply disregards

If this happens, you should contact the council and explain that foster children are disregarded for council tax purposes.

Providing evidence such as fostering approval or placement details can help resolve the issue.

Backdating Corrections

If the council accepts that a mistake was made, they can usually:

Correct the bill

Apply discounts

Backdate changes

This can result in refunds or reduced future payments.

Do not assume the first bill you receive is correct.

Foster Carers With Adult Foster Children

In some cases, foster placements continue beyond age 18 under staying put arrangements.

The council tax treatment depends on the legal status of the young person.

If they remain classed as foster children under an approved scheme, they are usually still disregarded.

If they become ordinary adult residents, they may be counted.

This is a nuanced area and worth checking with the council directly.

Temporary Placements and Council Tax

The length of a foster placement does not usually affect council tax treatment.

Whether the placement is short term or long term, foster children are disregarded as long as the arrangement is officially recognised.

You do not need to report each placement change unless it affects the number of adult residents.

Common Myths About Foster Carers and Council Tax

There are several persistent myths.

One is that foster carers never pay council tax, which is not true.

Another is that foster carers automatically get full exemption, which is very rare.

Some people believe fostering income increases council tax, which it does not.

Understanding the adult counting rules clears up most confusion.

Practical Steps Foster Carers Should Take

To make sure you are paying the correct amount, it is sensible to:

Tell the council you are an approved foster carer

Confirm that foster children are disregarded

Check whether you qualify for single person discount

Ask about Council Tax Reduction if income is low

Keep records of placements if needed

Clear communication avoids ongoing issues.

My Professional View

In my professional experience, most foster carers do have to pay council tax, but many pay less than they expect because foster children do not count as adults.

The biggest problems arise when councils misunderstand the household makeup or when carers assume exemptions apply automatically.

Checking your bill carefully and asking the right questions usually leads to the correct outcome.

Final Thoughts

So, do foster carers have to pay council tax in the UK?

Yes, in most cases they do. However, foster children are not counted as adults, which means single foster carers usually qualify for the 25 percent single person discount, and fostering does not increase council tax bills.

Additional reductions may apply through Council Tax Reduction schemes, depending on income and local rules.

The key is understanding that council tax is about countable adults, not about the work you do as a foster carer. If your bill does not reflect that, it is worth challenging it.

With the right information and a bit of persistence, most foster carers end up paying the correct amount, and often less than they initially feared.

You may also find our guidance on are students exempt from council tax and how to apply for council tax reduction helpful when reviewing your council tax position. For a full overview of council tax rules exemptions and reductions you can visit our council tax hub which brings all related guidance together.