The National Agency for Children and Families

Information for foster parents

Foster contracts and payments

The child protection services that place a child in foster care must make a written foster agreement with the foster parents before or immediately after the child is taken in. The foster agreement shall state, among other things, what payments to the foster parents will be made during the period of validity of the agreement.

Foster contracts

The foster contract should contain certain points:

Legal domicile and daily care
Supervisory duties – including legal advice
Estimated foster time
Child support and other costs
Child’s contact with parents and/or other close relatives
Support of child protection services for the child and foster parents during the time in care
End of foster care
Special care and training when appropriate
Other relevant issues

Part of a foster contract is a visitation agreement that is prepared in consultation with foster parents. It states the role of foster parents around visitation, for example regarding travel, support and supervision. You can read more about visitation in the sub-article about children's rights in foster care.

See Chapter 4 of Reglugerð um fóstur 804 / 2004 (in Icelandic)

Legal domicile and custody

The legal domicile of a permanent foster child is transferred to the foster parents' address. When the legal domicile moves to the foster parents, they can receive child benefits, and the child is registered in their tax return. They also have various rights such as the right to parental leave.

The custody of foster children is not transferred directly to foster parents. In temporary foster care, the parents usually continue to have custody of the child, but in a permanent foster care, the child protection services have custody following the parents' renouncing or being deprived of custody.

However, foster parents have custody obligations, and in practice the role of foster parents in permanent foster care is comparable to the full custody of a child in the most important aspects. Only major decisions regarding the child, such as medical procedures or relocation abroad, should be made in consultation with child protection services.

Payments in foster care

When a child is placed in foster care, the foster contract shall determine what payments shall be made to the foster parents, i.e., maintenance allowance, foster allowance and other costs.

If it is foreseen that other special costs will occur during the term of the foster care, the payment to the foster parents must be decided in the foster contract.

For example, this means:

Travel expenses for child's contacts with those close to him or her
Cost of kindergarten or other care
Special education costs or high costs for leisure activities
Cost of confirmation ceremonies for adolescents
Expenditures on major dental work, or significant health services, such as for serious or long-term diseases

Foster parents may request payment of costs that were not foreseeable when the foster contract was made by submitting a request describing the situation to the child protection services that placed the child in foster care.

Such a request must be submitted within six months of the time that the foster parents became aware of the expenses. If an agreement between the child protection services and the foster parents is not reached on the payment of unforeseen costs, the case shall be resolved by means of a well-reasoned decision by the child protection services. That decision is appealable to the Welfare Appeals Board.

If the National Agency for Children and Families agrees to participate in payments to foster parents for a child who needs special care and training, the child protection services that have placed the child in foster care will normally pay maintenance and foster care allowance that corresponds to nine times the general child support payment.

The state pays the foster parents an additional child support payment of up to nine times the child support payment, and foster parents receive these payments through child protection services.

See more: Reglugerð um greiðslur vegna barna í fóstri nr. 858/2013 (in Icelandic)

Payment termination

The child protection services or foster parents may terminate the foster contract or request that it be cancelled. A mutual notice period of one month is provided for unless otherwise agreed. Payments cease after the notice period or on an agreed date.

If no agreement can be reached between the child protection services and foster parents on termination of payments, the child protection services shall rule on the matter. The decision by the child protection services may be appealed.

Service provider

The National Agency for Children and Families

Related organization

Quality and Supervisory Authority for Welfare