This text sets out an analytical framework to examine the adequacy of the foster care allowances, paid to foster parents for the upkeep of a foster child in England. The study is intended to inform debate on issues such as the cost of childrearing, the additional direct and indirect costs to foster parents of fostering a child, and has an international dimension comparing foster care allowances in 15 countries. The examination of allowances provides evidence that there is a change in the nature of foster care and a need for policy to reflect that change. The degrees of difficulty in caring for the average foster child is greater than in previous years and local authorities are under pressure to maintain their supply of carers at a time when privatization of the fostering service is very much on the political agenda.