Following the finalisation of the Cost of Caring draft report the Child and Family Welfare Association of Australia (CAFWAA) in conjunction with the Australian Foster Care Association (AFCA) and the Association of Childrens Welfare Agencies (ACWA) issued the following statement.

Foster care is the backbone of child welfare services and is undergoing a crisis in recruitment and retention partly due to poor reimbursement. In 2001 Australia-wide bodies representing child and family welfare agencies and foster carers commissioned the Social Policy Research Centre (SPRC) University of NSW, to undertake research to establish the real cost of caring for foster children.

This study used techniques first employed to establish the cost of children generally in the community. By adding information on the special costs of fostering as determined through surveys and focus groups held in every State and Territory, the SPRC was able to calculate the real costs incurred by looking at four different age groups of children (costs vary with age of the child) in foster care. These are the Foster Care Estimates (FCE).

The research finds that the estimates of the costs of children in foster care are on average 52% higher than the costs of children not in care. Foster children require more expenditure than "ordinary" children in the areas of housing, wear and tear, household and contents insurance, water usage, energy, food, clothing and footwear, health, specialist assistance, transport (particularly access visits to birth families), leisure and personal care.

The study shows that NO state or territory is, overall, paying an adequate reimbursement to foster carers at the standard subsidy level, compared to the estimated costs of foster children. (See Table 1 over)

The research also confirms that there is a high level of discontent amongst carers about reimbursement of costs in all states and territories.

TABLE 1: The Foster Care Estimates (FCE) compared to the Standard Subsidy Levels for all States by age of the child (2000) ($ per week)

• housing (FCE costed this at between $34.87 and $45.16 according to child’s age);
• food (FCE costed this between $29.55 and $68.56 according to the child’s age);
• energy (FCE costed this at $3.87); and the
• bulk of ongoing clothing (FCE costed this between $12.79 and $22.84 depending on child’s age).

Some States expect other items to be paid for out of the Standard Subsidy. In some circumstances States may make additional payments when a cost is incurred (contingency payments). However it should be noted that most of these are discretionary payments, and the report found payment both arbitrary and slow. (See Table 2 below.)

Table 2: BASIS OF DECISION MAKING ON PAYMENT ABOVE THE STANDARD SUBSIDY

1. All States and Territories should accept the FCE (Foster Care Estimates) as the basis of payment to reimburse for food, housing, energy, ongoing clothing, insurance, basic health, dental, daily transport, leisure and personal care. This amount should be adjusted annually to reflect the cost of living.
2. FCE payments should be age related, irrespective of legal order, and special needs categories should apply. A loading for rural and remote carers should be added. Payments should be applicable to kin carers on request.
3. Mandatory additional payments should be made for: placement establishment expenses (including clothing), presents, specialist services including counselling and tutoring, childcare, private health cover, over the counter mediation, education (books, excursions), mileage and expenses for all "official" work such as family contact, appointments and care planning meetings, and respite care.
4. Immediate assistance by Government should be provided to address the insurance needs of carers.
5. Assistance with larger vehicles should be common.

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