IPART Out-of-Home Care Review: Cost of Caring

The challenge​

Children in foster care often face unique and complex challenges, including health, developmental, and socio-cultural challenges. These factors contribute to higher costs of care compared to children in permanent family settings or those outside the foster care system.

The research​

To ensure foster children receive appropriate and holistic support, the Independent Pricing and Regulatory Tribunal (IPART) commissioned an independent review to assess the adequacy of the foster care allowance in New South Wales (NSW).

The impact​

Our research highlighted that the current NSW foster care allowance underestimates the true cost of providing quality care, especially for older children and those in high-cost regions. Our study proposed adjustments to the fortnightly allowance to ensure that the allowance aligns with contemporary household spending patterns and have better support carers and ensure children in foster care have access to the resources they need for their health, development, and overall well-being.

Our researchers

Melbourne Institute - Ou Yang, Yuting Zhang, Jongsay Yong, Karinna Saxby, Ron Fisher.

Our partner

NSW Independent Pricing and Regulatory Tribunal

Reports