Tower Hamlets foster carers to receive 100% council tax break

Maya Patel Author

2026-05-14 13:44 • 4 min read

Residents in Tower Hamlets who provide foster care will soon see their household expenses significantly reduced as the local authority introduces a full council tax exemption. This 100 per cent reduction is designed to recognize the life-changing impact foster families have on vulnerable young people and to encourage more households to consider opening their doors to children in need.

The policy is set to take effect from the 2026–27 financial year, offering a direct financial incentive to both existing and new foster carers. This move places the borough at the forefront of local authority support for fostering, aiming to remove financial barriers that might prevent qualified individuals from participating in social care.

Full council tax exemption for borough carers

Under the new scheme, approved foster carers living in Tower Hamlets will be eligible for a total waiver of their council tax bill. The benefit operates as a retrospective reimbursement, meaning that carers will receive the full amount back at the conclusion of their first year of approval. This ensures that the benefit is tied to active service and successful placement support within the borough.

This tax break does not replace existing financial support but serves as an additional layer of assistance. Carers will continue to receive their standard weekly allowances and professional fees, which are already structured to cover the costs of caring for a child and providing for their development.

Financial support and training for new applicants

Tower Hamlets Council has confirmed that fostering is an inclusive opportunity open to all residents. Eligibility is not restricted by religion, sexual orientation, ethnicity, or personal circumstances. The primary requirement is the ability to provide a child with a stable, loving, and supportive environment that fosters growth.

Beyond the council tax reduction, the borough provides a comprehensive package of professional support. This includes specialized training opportunities to enhance parenting skills and access to therapeutic support for both the carer and the child. These resources are designed to help families manage the complexities of foster care and ensure long-term stability for the children involved.

Executive Mayor Lutfur Rahman described the borough’s foster carers as “heroes and vital pillars of our community.” He noted that the tax break is a tangible way for the local government to say thank you for the vital role these residents play in changing the lives of young people.

Community events and the path to fostering

The announcement coincides with the start of Foster Care Fortnight, a national awareness campaign focused on the vital need for new placements. To support this initiative, the council is organizing two weeks of local activities to engage with the public and answer questions about the application process.

Events scheduled across the borough include information stalls in high-traffic areas, a community fostering walk, and leafletting sessions. These gatherings allow prospective carers to meet with current foster families and social workers to understand the day-to-day realities of the role.

Afia, a local foster carer, highlighted the emotional rewards that come with the responsibility. She observed that many children arrive feeling anxious or tearful, but transform through patience and kindness. Seeing that growth in confidence is what many carers cite as the most significant motivation for their work. Residents interested in the new tax benefits and the fostering process can attend the upcoming launch events or access the council’s digital fostering portal to begin their journey.

Source: Tower Hamlets Council