What financial assistance can kinship carers apply for?

Kinship carers may be able to receive financial assistance through benefits, local-authority payments, disability-related support, education and housing help, and charitable grants. The type and amount of support depends on the child’s legal status, who has parental responsibility, the carer’s income and savings, the child’s needs, and whether the arrangement is temporary or permanent.

Benefits and tax-related support

• Universal Credit: a kinship carer may be able to claim for a child who normally lives with them, subject to the usual rules about income, savings, housing and caring responsibilities. The child element and any other part of the claim should be checked carefully, particularly where another adult is already receiving support for the child.
• Child Benefit: this may be available to the person mainly responsible for the child’s care. There are rules about who can claim when a child is looked after by a local authority, placed under a fostering arrangement or already included in someone else’s claim.
• Carer’s Allowance: a kinship carer looking after a child with substantial care needs may qualify if the child receives an appropriate disability benefit and the carer meets the earnings and caring conditions. Receiving another benefit or pension can affect the amount payable.
• Disability benefits for the child: Disability Living Allowance for children may be relevant where a child has significantly greater care or mobility needs than a child of the same age. The claim is based on the child’s needs rather than the kinship relationship.
• Guardian’s Allowance: this is only available in specific circumstances, usually involving the death of a parent and the surviving parent being unable to care for the child. It should not be assumed to apply to every relative or friend caring for a child.

Tax credits are largely closed to new claims, although some people may still have an existing claim while moving to Universal Credit. A benefits adviser can explain how a change in circumstances could affect current support before a new claim is made.

Payments connected with the child’s legal arrangement

The legal route used to care for the child can make a significant difference. A child placed with a kinship carer by children’s services may attract a local-authority fostering allowance if the carer is approved as a connected-person foster carer. This is separate from means-tested benefits and is intended to contribute towards the costs of caring for the child. The local authority should explain its allowance policy, payment arrangements and any expenses that can be claimed.

A special guardian may be eligible for a special guardianship allowance or other financial support from the responsible local authority. This is not automatic. The authority may carry out a financial assessment and consider the child’s needs, the carer’s circumstances, available resources and the terms of the special guardianship order. Support may be reviewed if circumstances change.

Adoption support may apply where a child has been adopted by a relative or another connected person, although the rules differ from those for fostering and special guardianship. Informal family arrangements do not normally create an automatic entitlement to a local-authority allowance. This is one reason to establish the proposed legal status before relying on a particular payment.

Help with essential household costs

Depending on their circumstances, kinship carers may also be able to seek:

• help with rent or housing costs through Universal Credit or other relevant housing support;
• Council Tax Reduction, where household income and local rules allow it;
• free school meals or other education-related assistance, subject to the child’s circumstances and the household’s income;
• support with school uniform, transport, meals, equipment or activities through the local authority or the child’s school;
• help with energy, food or essential household items through local welfare schemes; and
• discretionary assistance with particular costs linked to the child’s care, including items needed when the child first moves into the household.

These schemes are administered locally and may have different names, conditions and application processes. A payment made by children’s services may also be treated differently from a benefit when another claim is assessed, so the effect of receiving one form of help should be checked before applying for another.

Grants and charitable funding

Some grant-giving organisations provide help to kinship families with costs such as clothing, beds, school equipment, travel, activities or household essentials. Eligibility can depend on the child’s age, health, family circumstances, household income or legal arrangement. Applications may need supporting information from a social worker, school, health professional or another recognised organisation. Grants are usually discretionary and may not be available for every expense.

How to apply and what to prepare

• Confirm the child’s current legal status and identify who has parental responsibility.
• Ask the child’s social worker or local authority kinship team for a written explanation of any allowance, assessment or support plan that may apply.
• Use an independent benefits adviser to check entitlement, particularly where Universal Credit, disability benefits, Carer’s Allowance or an existing claim overlap.
• Gather evidence such as identification, proof of address, income and savings details, the child’s birth or placement information, court orders, fostering or adoption paperwork, and evidence of additional care needs.
• Keep copies of applications, decisions and supporting documents, and record the date of any change in the child’s circumstances.

Apply as soon as the relevant conditions are met, because some benefits and grants are only paid from a claim date and some local schemes have their own deadlines. If an application is refused or an award appears to have been calculated incorrectly, read the decision notice carefully and ask about a mandatory reconsideration, appeal or review where that route is available.

Financial support should be reviewed after a change such as a new court order, a move from fostering to special guardianship, a change in the child’s needs, a change in household income, or the child reaching a relevant age. Keeping the legal and financial position under review helps prevent missed assistance and reduces the risk of an overpayment.