Can relative caregivers claim benefits?

Relative caregivers may be able to claim benefits for themselves and the child, but entitlement depends on the child’s age, where the child lives, the caregiver’s income and savings, housing costs, other household circumstances and the legal basis for the arrangement. The same family circumstances can produce different results depending on whether the child is living informally with a relative, under a child arrangements order, under a special guardianship order or in an approved foster placement.

Benefits that may be relevant include:

• Universal Credit: a caregiver may qualify if their household has a low income or is out of work. The calculation can include amounts for children and, depending on the circumstances, help with housing or childcare costs. The rules are different where the child is looked after under a fostering arrangement, so the caregiver should explain the placement fully when claiming.
• Child Benefit: this may be available to the person who is mainly responsible for the child’s upbringing. The child normally needs to be under 16, or under 20 and in approved education or training. Child Benefit can be affected by the income of a higher-income person in the household through the High Income Child Benefit Charge.
• Housing Benefit or help with rent through Universal Credit: support may be available if the caregiver rents their home and meets the relevant income and housing conditions. The number of people in the household and the child’s legal status can affect the calculation.
• Council Tax Reduction: a low-income household may qualify for a reduction, although this is administered by the local council and the rules vary between councils.
• Pension Credit: a relative caregiver who has reached State Pension age and has a low income may be eligible. Additional amounts or related help may apply where the caregiver is responsible for a child, but the child’s circumstances must be considered.
• Disability-related benefits: if the child has a disability or long-term health condition, Disability Living Allowance for children may be relevant. A caregiver may also qualify for Carer’s Allowance if they provide substantial care for someone who receives a qualifying disability benefit, subject to the earnings and other conditions.

Tax credits are now largely replaced by Universal Credit. They may still appear in older claims or limited transitional situations, so a caregiver should not make assumptions based on information about a previous benefit system.

The legal arrangement is particularly important. A relative caring for a child through an informal family arrangement is assessed differently from someone caring for a child placed by a local authority. A child arrangements order or special guardianship order may provide parental responsibility and can affect which person is treated as responsible for the child. An approved kinship foster carer may receive fostering payments under a separate scheme, with different rules from Child Benefit and Universal Credit.

Kinship care payments, special guardianship payments, fostering allowances and other local-authority support should be reported when a benefit application asks about income or other financial support. They are not all treated in the same way: some payments may be disregarded for a particular benefit, while others may affect the calculation or interact with another payment. The treatment can also depend on what the payment is intended to cover. A caregiver should therefore give the exact name of the payment and provide the award letter rather than describing it simply as an allowance.

Before applying, gather information about:

• the child’s date of birth and where they normally live;
• the date the child came into the caregiver’s care;
• any court order, fostering approval or local-authority agreement;
• the caregiver’s earnings, benefits, savings and pension income;
• rent, mortgage, Council Tax and registered childcare costs; and
• any payments received for the child, including fostering or kinship care support.

Applications should be made to the relevant government service or local council, depending on the benefit. A benefits adviser, welfare rights service, social worker or kinship support worker can help check the rules before an application is submitted. This is useful where the caregiver is moving from an informal arrangement to a court order, where a child has additional needs, or where more than one payment is involved.

Caregivers should also report changes promptly. Moving home, a change in earnings, a change in the child’s education, the child returning to a parent, a new court order or a change in fostering status can alter entitlement. Keeping copies of applications, decisions and payment statements makes it easier to challenge an incorrect decision or explain the household’s circumstances at a later stage.

If a claim is refused or an award appears wrong, the caregiver can ask for the decision to be explained and request a mandatory reconsideration where that process applies. Time limits can apply, so advice should be sought promptly. A benefits calculation is only a guide until the relevant authority has made a formal decision.