Cuts 'will leave NSW kids on street'

Government cuts to the NSW foster care allowance will put more teenagers on the streets, a support group for carers warns.

Since January 1, the $622 a fortnight foster care allowance for over-16s has been slashed by $212.

Foster parents Helen and Brian MacDonald on Thursday told Fairfax they would no longer look after two teenagers in their care because of the state funding cuts, which came into place on January 1.

The president of the Foster Parents Support Network, Sue O'Connor, said other couples were unlikely to follow the MacDonald's example.

However, she feared the reduced allowance would discourage parents from fostering over-16s in the future.

"If you didn't love the kids like your own then you wouldn't be a foster parent," Ms O'Connor told AAP.

"(But) what I'm hearing from carers is that if they asked me to take a 16- or 17-year-old and give them a home, I'm going to say no.

"It is the most difficult age to place now, because of everything that comes with these kids, so it is going to be even harder."

Ms O'Connor said the $8 million in savings should come from a "fairer" across-the-board cut for every child in care.

"Carers would wear that, but they won't wear this," she said.

"I think in six months we're going to be wondering why we have so many kids on the street."

NSW Community Services Minister Pru Goward said foster families should not be out of pocket because the state shortfall could be filled by commonwealth benefits.

Families can apply for the $214 Family Tax Benefit, or the $212 Youth Allowance, which will fill the hole left by the state changes, Ms Goward told ABC Radio.

But Ms O'Connor questioned the minister's figures, saying both federal payments were available before the state cuts.

"Carers were getting the Family Tax Benefit when the child was 15," she said.

"There is no change for the federal government, however, the state government is still taking the $212 off them.

"How can they not be any worse off?"

Opposition leader John Robertson said carers couldn't look after 16- and 17-year-olds with the sort of budgetary cuts the government was implementing.

"Some of these parents are now confronted with making this really tough decision about how they're going to raise these kids, and whether they'll be able to do it," Mr Robertson told reporters in Sydney.

"Barry O'Farrell needs to put this money back into this program to look after these kids."

Federal Families Minister Jenny Macklin and Community Services Minister Julie Collins called on the NSW government to reinstate the foster allowance for over 16s.

"This is an attack on carers, who not only open up their homes to young people in need, but give their time, energy and financial assistance to help them have a better life," a joint statement from the ministers said.

"Foster care families will go backwards under the O'Farrell government's slash and burn policy making."