Carers in half of the 22 Welsh councils receive allowances lower than the Fostering Network's recommended minimum rates, a survey for the charity has indicated.
England and Northern Ireland already set statutory minimum allowance levels, and the Fostering Network has urged the Welsh Assembly Government - which has commissioned research into the issue - to follow suit.
Freda Lewis, director of the Welsh branch of the Fostering Network, said: "A statutory requirement on local authorities to give their foster carers an adequate allowance is vital. If this doesn't happen many Welsh fostered children will remain undervalued and their foster carers will continue to struggle to make ends meet."
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