Can foster carers claim Universal Credit?

Universal Credit is assessed on your household circumstances, rather than on your status as a foster carer alone. The main points considered are your income and capital, whether you have a partner, your housing situation, and whether you have children or caring responsibilities.

How fostering payments are treated

Payments made to foster carers to cover the costs of caring for a child are generally disregarded when Universal Credit is calculated. This means that your fostering allowance should not normally reduce your Universal Credit in the same way as wages or other assessable income.

Keep a clear record of each payment, including the fostering allowance, any agreed fee and amounts paid towards specific costs. The treatment can depend on the nature of a payment, so it is important to tell the Department for Work and Pensions that you foster and provide accurate information about what you receive.

What can affect your claim?

• Other household income: wages, pensions, benefits and certain other income may affect the amount of Universal Credit payable.
• Savings and capital: money held in bank accounts, investments or other capital is considered under Universal Credit rules. The value of your home is generally treated differently from savings and investments.
• Your partner: Universal Credit is usually assessed jointly where you live with a partner, so their income and capital may be relevant as well.
• Housing costs: you may be assessed for help with eligible rent or other housing costs, subject to the relevant rules and limits.
• Children and childcare: you may be able to receive support connected with your own qualifying children or eligible childcare costs. A foster child is not normally treated in the same way as a birth or adopted child for the Universal Credit child element.
• Health and caring responsibilities: illness, disability or caring for someone may affect your work-related requirements or the elements included in your award.

Fostering and work-related requirements

Becoming a foster carer does not automatically remove all work-related requirements. Your claimant commitment should reflect your actual circumstances, including the age and needs of the child in placement, the demands of fostering and any training or meetings you must attend. Discuss these circumstances with your work coach and keep them updated if a placement begins, ends or changes.

Fostering involves training, assessments, household checks, supervision and ongoing support. These responsibilities may be relevant when your work-related activities are agreed, but the final decision is made under Universal Credit rules by the Department for Work and Pensions.

How to make a claim

• Check your likely eligibility using the official Universal Credit information and claims service.
• Complete the claim with details of your household, housing, income, savings and existing benefits.
• Declare that you are a foster carer and explain the payments you receive, keeping supporting statements or payment records.
• Attend the required appointment and agree your claimant commitment.
• Report changes promptly, such as a new placement, a change in fostering payments, a change of address or a change in household income.

If you currently receive tax credits or another legacy benefit, get independent advice before making a Universal Credit claim. Starting a claim can affect existing benefits, and the correct process depends on whether you have received a migration notice or your circumstances have changed.

Fostering allowances can also have separate tax treatment under the qualifying care relief rules. Universal Credit and tax are different systems, so a payment that is disregarded for one purpose should not automatically be assumed to be disregarded for another.

The most reliable assessment will use your current household details and up-to-date fostering payment information. A benefits adviser, your local authority or fostering agency can help you understand what evidence to provide, while the Department for Work and Pensions makes the decision on your Universal Credit claim.