Foster Parent Payment in BC: Rates, Allowances, and What the Money Actually Covers

BC foster parents receive a monthly maintenance payment for each child in their care. What the payment covers, how much it is, whether it's taxable, and whether it's enough to actually cover the costs of raising a child — these are all questions that deserve straight answers.

Here is the current payment structure for BC foster caregivers, accurate to the rates effective July 1, 2025.

What the maintenance payment is for

The maintenance payment is not income. This distinction matters both practically and legally. The funds are intended to cover the child's costs: food, clothing, school supplies, recreation, personal care items, and everyday needs. BC requires foster caregivers to be financially self-sufficient — your household must be able to meet its own financial obligations without relying on the maintenance payment. The payment exists to cover the child you're caring for, not to compensate you for your time.

This is a common source of surprise for people considering fostering for the first time. Foster care is not a paid occupation in the traditional sense. The families who make it work long-term either have two incomes (and one or both partners have schedule flexibility), a single income that's stable enough to absorb the household costs, or significant personal assets. The payment covers the child. It does not cover your labour.

Monthly maintenance rates (effective July 1, 2025)

These rates were last updated on July 1, 2025, following significant increases in April 2023 and July 2024 that reflected the cost of living in BC. Before those increases, BC's rates had fallen behind the actual cost of care and were a frequent point of advocacy by the BC Foster Parents Association.

Monthly rates are paid directly to the caregiver through MCFD for children placed under the provincial system, or through the relevant Delegated Aboriginal Agency (DAA) for Indigenous children in DAA-administered placements.

Specialized service payments

If you are approved to provide care for children with moderate to extraordinary support needs — a Level 1, 2, or 3 home — you receive a service payment in addition to the maintenance allowance. These are in recognition that specialized care requires greater time, skill, and resources than standard placement.

Level 1 homes typically serve children with moderate behavioural or developmental challenges who require a higher-than-standard level of supervision and support. Level 2 and Level 3 homes provide intensive care for children with complex medical needs, significant disabilities, or extraordinary behavioural support requirements.

The level is assigned based on the child's assessed needs at placement, not on your home's general license. A home approved for Level 2 placements can accept lower-level placements, but only receives the higher service payment when a Level 2 child is actually in the home.

For Level 2 and Level 3 homes that exceed their standard licensed capacity, an additional standardized service payment applies: $935.93 per child for Level 2 and $1,675.41 per child for Level 3.

Emergency and interim placement rates

Emergency or interim placements — defined as immediate, short-term arrangements typically lasting up to 60 days — qualify for a higher per diem rate. Emergency care acknowledges the unplanned nature of the placement and the disruption it creates for your household.

Contact your Resource Social Worker for the current emergency per diem schedule; rates are reviewed periodically and vary slightly depending on the child's assessed level.

Respite care payments

When you use respite care — taking a break while another licensed caregiver temporarily looks after the child — the respite provider receives the daily respite rate applicable to that child's level, paid by MCFD. This is separate from your own monthly maintenance payment, which continues for the child in your care during your break period.

Most foster caregivers are entitled to 72 to 84 hours of respite per month per child, depending on placement level. The BC PRIDE In-Service Training emphasizes using respite as a tool to prevent caregiver burnout. Licensed foster families who do not use available respite consistently report higher rates of placement disruption and caregiver fatigue.

Dental, optical, and health benefits

Children in care in BC receive significant health coverage. As of 2023, dental benefits were increased to $1,000 annually per child under the Healthy Children program. Optical coverage is also included. This coverage is processed through the Ministry, not through a private plan — your Resource Social Worker can walk you through how to submit claims.

Travel and transportation reimbursement

Foster caregivers can claim reimbursement for travel directly related to the child's care: access visits with biological family, specialist medical appointments, court-related transportation, and similar expenses. The reimbursement rate is set by MCFD and applies to mileage driven in your personal vehicle.

In Northern and Interior BC, where biological family visits can involve driving significant distances, this reimbursement is meaningful but the administrative burden of tracking and claiming it is real. Keep a log of every trip from the first placement day.

Is foster care income taxable?

In Canada, foster care maintenance payments are generally not considered taxable income when they meet specific conditions under the Income Tax Act — primarily that the payment is for the care of a child placed by a government agency or licensed organization and that the caregiver is not in the business of foster care. The Canada Revenue Agency has specific guidance on this, and the BC Foster Parents Association (BCFPA) can direct you to resources that clarify how to report (or not report) these payments on your return.

Service payments for specialized care (Level 1, 2, 3) are treated differently and may have different tax treatment. Speak to an accountant who is familiar with the foster care payment structure if you are receiving service payments.

The full financial picture

The maintenance payment covers the child's costs when managed carefully. BC's rates are reasonable relative to the actual cost of raising a child in most parts of the province — though they are stretched in Metro Vancouver, where food, clothing, and activity costs are higher.

What the payment does not cover is the less visible cost: your time. The documentation, the appointments, the court dates, the access visit transportation, the professional development, the availability at all hours when a child is in crisis — none of that is compensated. This is why fostering is generally sustainable for households that have income stability independent of the payment, and genuinely difficult for those who need the payment to cover their own bills.

To understand the full application process — including the SAFE home study, the CRRA background check, and what to expect from your first placement — the British Columbia Foster Care Guide provides a plain-language walkthrough of everything before and after the first maintenance cheque arrives.

Fostering in BC is meaningful work. Going in with clear eyes about the finances is part of making it sustainable.

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