Are foster carers eligible for cost of living payments?

Cost of Living Payments were temporary payments introduced by the UK Government to support people receiving certain means-tested benefits, tax credits, disability benefits or pension-related support. The general Cost of Living Payment scheme has now ended, so there is no standard payment that foster carers can claim solely because they foster. Any future scheme would have its own rules, qualifying benefits and assessment dates.

Foster carers may have qualified for a payment during an earlier scheme if they also received a benefit or tax credit included in that scheme. The relevant factor was the qualifying award, rather than the fostering role itself. Depending on their circumstances, this could have included support such as:

• Universal Credit;
• Pension Credit;
• income-related Employment and Support Allowance, Jobseeker’s Allowance or Income Support;
• Working Tax Credit or Child Tax Credit; or
• certain disability benefits, where a separate disability payment applied.

Each payment had its own qualifying period and eligibility conditions. Receiving a qualifying benefit after the relevant assessment date did not necessarily create entitlement to an earlier payment. Payments could also be affected by changes to an award, a claim being closed, or a benefit being paid at a nil rate.

Does a fostering allowance count as a qualifying benefit?

No. A fostering allowance is paid to cover the costs of caring for a child and is not itself one of the benefits used to establish entitlement to a Cost of Living Payment. It should therefore be considered separately from benefits that may make a household eligible.

This does not mean that fostering prevents a person from receiving other benefits. Eligibility for benefits is assessed under the rules of the individual benefit, and fostering income and expenses can be treated differently depending on the benefit and the type of fostering arrangement. A foster carer should give accurate information about their circumstances when making a claim and ask the relevant benefits office how fostering payments will be handled.

What other help may be available?

Although the national Cost of Living Payment scheme has ended, other forms of support may still be relevant. These can include entitlement to an existing benefit, Council Tax Reduction, local welfare assistance or support provided through a council’s Household Support Fund. These are separate schemes and may use different eligibility tests, such as household income, savings, disability, age, children in the household or a particular financial difficulty.

Household Support Fund assistance is administered locally, so the available help and application process can vary between councils. A foster carer should check the current information from their own local authority rather than relying on details published for another area. Fostering services may also provide guidance about allowances and financial planning, but they cannot decide entitlement to government benefits.

How to check your position

• Review current benefit or tax credit award notices and identify whether you receive a benefit named in the relevant government guidance.
• Check the qualifying dates and other conditions for any payment or scheme being considered.
• Use the benefits calculators and guidance available through GOV.UK, or contact the organisation that administers the benefit.
• Ask your local council about Council Tax Reduction and any current local welfare support.
• Keep award letters and records of fostering payments and expenses, as these may be needed when discussing your circumstances.

Do not assume that a fostering allowance creates entitlement, and be cautious of messages asking for bank details in exchange for a payment. Confirm any claim or payment information through GOV.UK, HMRC, the Department for Work and Pensions or your council. Rules can change, so the latest official guidance should be checked before relying on a payment when planning household finances.