Are Foster Parents in Ontario Compensated?
Foster parents in Ontario receive financial support through a daily allowance called a per diem. The per diem is designed to cover the cost of raising a child in care, not to serve as income. At Safe Harbours, we provide $75-$90 per day for each child placed in your home, depending on the needs of the children and financial arrangements regarding daily care items. This amount is among the highest per diems in Canada and ensures that children’s essential needs can be met consistently.
The per diem is non-taxable and is not considered income by the government. This means you will not report it on your taxes, but you also cannot rely on it to pay for your own household expenses, such as rent or mortgage. You must have independent financial stability in order to foster.
What Is a Per Diem and How Does It Work?
The per diem is a daily rate provided for each foster child to meet their everyday needs. We pay it directly to foster parents for every day a child is in your care.
What matters is that the child receives proper food, clothing, and experiences that support healthy growth.
What the Per Diem Covers (Food, Clothing, Activities, Hygiene, Housing Costs)
The per diem covers the normal costs of raising a child. This includes:
- Food and groceries – ensuring children have balanced meals.
- Clothing – seasonal wear, shoes, and essentials.
- Hygiene products – items like soap, shampoo, and personal care.
- Recreational activities – school trips, sports, or hobbies.
- Housing contribution – a share of rent, utilities, and household needs.
The allowance is set to reduce financial pressure, so you can focus on providing consistent care and stability for the child.
Exceptional Costs That Are Reimbursed (Medical, Travel, Therapy)
Some expenses fall outside the daily per diem and are reimbursed separately with approval. At Safe Harbours, we cover costs such as:
- Medical expenses – prescription drugs, medical devices, or therapies.
- Travel expenses – mileage beyond 200 kilometers per month is reimbursed at a set rate.
- Specialized therapy – counseling, mental health services, or clinical supports when required.
We ask foster parents to request approval for these costs before they occur, so there is no financial risk to you. Our goal is to make sure you have the resources to give children high-quality care without carrying the burden of exceptional expenses.
What’s Not Covered (Daycare, Property Renovations)
Not every expense related to fostering is covered by the per diem or reimbursed. Daycare costs are generally not included unless there are exceptional circumstances, such as when the child’s needs require specialized supervision during the day. Property improvements, like adding pool fencing, updating stairs, or finishing basements, are also not covered.
Tax Considerations: Is the Per Diem Income?
The per diem you receive as a foster parent is not considered income. In Ontario, foster care payments are tax-exempt and do not need to be reported on your annual return. This allows foster parents to use the full per diem for children’s care without worrying about deductions or tax obligations.
However, because the per diem is not income, it also cannot be used for financial products like RRSP contributions. This makes it important to maintain your own employment or other income streams for long-term financial security.
Why Financial Stability Outside the Per Diem Matters
Fostering requires that you already have the means to support your household. The per diem is intended to cover the foster child’s needs, not to pay your rent, mortgage, or existing bills. Safe Harbours reviews each family’s financial situation carefully to confirm that you can meet your own expenses.
We may ask about outstanding loans, past bankruptcies, or obligations, because financial stress can affect the stability of your home. Stable finances create a foundation for stable caregiving, and children in care need that consistency more than anything.
Money vs. Motivation in Fostering
The real motivation must be a willingness to provide a safe, nurturing environment for children who have experienced hardship. Foster parents who see the role as an opportunity to make a difference, not to make money, are the ones who thrive and provide the strongest support for children.
Safe Harbours Needs Foster Parents Like You
We know that fostering is both demanding and rewarding, and children in Ontario need safe and caring homes right now. At Safe Harbours, we give you the training, guidance, and support to make fostering possible and meaningful. If you’ve ever thought about opening your home, this is the time to take the first step.
Join us in creating stability and hope for children—reach out today and learn how you can become a Safe Harbours foster parent.