What financial support is available to kinship carers?

Financial support for kinship carers varies according to the legal order in place, whether the child is looked after by the local authority, the carer’s household income and the child’s needs. Support may come from the local authority, the benefits system or charitable organisations, and some payments must be requested rather than being awarded automatically.

Kinship foster care payments

If you are approved as a kinship foster carer, you should receive a fostering allowance for the child placed with you. This is intended to contribute towards the everyday cost of caring, such as food, clothing, travel, activities and household expenses. The amount and payment arrangements are set by the fostering service and can depend on the child’s age, needs and placement requirements.

Additional payments may be available where the child needs specialist equipment, therapy, travel, education support or other services. Ask the fostering service to explain which costs are included in the regular allowance and which may need separate approval. Keep receipts and records for significant expenses, particularly if you have been told that a cost can be reclaimed.

Fostering payments are different from wages. Foster carers may also have specific tax rules, including qualifying care relief, but the treatment depends on the type of fostering arrangement and your circumstances. Obtain current guidance from HM Revenue and Customs or a qualified adviser before deciding how fostering payments will affect your tax position.

Support under a special guardianship order

A special guardianship order gives a child’s carer enhanced parental responsibility without ending the legal relationship with the child’s parents. A local authority may pay a special guardianship allowance, but this is not automatically available in every case. The allowance is usually considered through a financial assessment, taking account of matters such as household income, benefits, savings, the child’s needs and any payments already received.

The local authority should explain how its assessment works and provide written information about any proposed allowance. An allowance may be reviewed, changed or stopped if circumstances alter. Before accepting an order, ask whether the payment is regular, what expenses it is intended to cover, whether it will be reviewed and what could affect eligibility.

Some local authorities can also contribute towards particular costs connected with a special guardianship arrangement, such as legal advice, settling-in expenses, contact arrangements or essential equipment. These payments are discretionary and may require an assessment or prior agreement, so ask about them before incurring costs.

Child arrangements orders and informal arrangements

A child arrangements order can set out who a child lives with, but it does not normally create an automatic fostering allowance. Financial help may nevertheless be available through ordinary benefits or through a local authority’s kinship support arrangements, depending on the child’s circumstances.

If the child is living with you informally, the financial position can be less clear. You may be able to claim certain benefits, but the outcome can depend on whether you have parental responsibility, whether the child is looked after, who receives Child Benefit and whether another person is already claiming for the child. Obtain advice before changing an existing claim or applying for a new one.

Benefits and household support

Depending on your income, savings, work, housing costs and family circumstances, you may need to check eligibility for:

• Child Benefit;
• Universal Credit, including any relevant child or childcare elements;
• help with rent or council tax;
• support with school meals, school clothing, transport or other education costs;
• Disability Living Allowance for children where the child has substantial care or mobility needs; and
• other local welfare assistance or household grants.

Rules can differ where the child is looked after, where you receive fostering payments or where a special guardianship allowance is paid. Do not assume that receiving one payment automatically prevents you from claiming another, or that every payment will be ignored in a means test. The benefit office or a specialist adviser should assess your individual circumstances.

Help for children with additional needs

Financial support may be available because of the child’s particular needs rather than because you are a kinship carer. For example, a child with a disability or long-term condition may qualify for disability-related support. This can help with extra care, supervision, mobility or equipment costs. Applications usually require information from people involved in the child’s care, such as health, education or social care professionals.

Ask whether the local authority can arrange an assessment of the child’s needs. The assessment may identify practical services as well as financial assistance, including short breaks, equipment, transport or support at school.

Grants and one-off payments

Some councils, trusts and charities offer grants for items such as beds, clothing, school equipment, furniture, travel or activities. Eligibility may depend on the child’s age, the household’s income, the legal arrangement and whether another organisation has already agreed to meet the cost. Applications may need supporting documents and, in some cases, must be made before buying the item.

Ask the social worker or kinship support service whether there is a local grant scheme. A grant is usually not guaranteed and should not be treated as regular income when planning your household budget.

What to check before accepting a placement or legal order

• Identify the proposed legal arrangement and ask which payments normally apply to it.
• Request a written financial assessment, including how your income, benefits and expenses have been considered.
• Ask whether the payment is intended to meet ordinary costs, additional needs or both.
• Check whether the amount will be reviewed and what changes you must report.
• Find out how the arrangement affects benefits, tax, housing support and council tax.
• Ask about help with legal costs, equipment, travel, contact and education before paying for them yourself.
• Keep copies of decisions, agreements, receipts and correspondence.

Financial arrangements can be reconsidered if the child’s needs change, your household circumstances alter or the legal status changes. If you disagree with a decision, ask for the reasons in writing and check whether there is a review or appeal process. A kinship social worker, local authority benefits adviser, Citizens Advice or a specialist kinship organisation can help you understand the rules that apply to your situation.