Can foster carers claim Housing Benefit?

Whether you can receive Housing Benefit depends mainly on your age, accommodation, rent, income, capital and household circumstances. Your fostering payments should normally be disregarded when the council assesses your eligible income, but becoming a foster carer does not automatically create entitlement to help with rent.

Who can usually make a Housing Benefit claim? Housing Benefit is now largely limited to people who have reached State Pension age and people living in particular types of accommodation. It may also remain available in some cases involving temporary accommodation or specified supported accommodation. Most working-age tenants who need help with housing costs are expected to claim Universal Credit instead.

If you are unsure which system applies to you, check with your local authority before making a claim. The relevant council will consider the type of accommodation you occupy and whether your circumstances fall within one of the exceptions to the usual Universal Credit rules.

How fostering payments are treated

Fostering allowances and other payments made for the care of a fostered child are generally ignored when Housing Benefit is calculated. This reflects the purpose of the payments: they are intended to meet the costs of caring for the child rather than provide ordinary household income.

However, the council will still look at other money coming into the household. This can include employment income, pensions, benefits, maintenance payments and certain forms of capital. The precise treatment can depend on what a payment is for, so keep statements and payment information in case the council asks for evidence.

Factors that can affect the amount

• Eligible rent: Housing Benefit does not necessarily meet the full amount of rent charged. The calculation may exclude certain charges, such as some utility or service costs.
• Type of tenancy: The rules can differ between social housing and private renting. For a private tenancy, the council may use a Local Housing Allowance figure when assessing the maximum eligible rent.
• Household income and capital: Savings, investments and income from people in your household may affect entitlement, even though fostering payments are usually disregarded.
• Non-dependants: An adult living in the property who is not a partner or dependent child may affect the calculation, depending on their circumstances.
• Bedroom entitlement: Foster carers may qualify for an additional bedroom in some circumstances, particularly where they are approved foster carers and meet the relevant conditions. The rules are specific, so provide the council with details of your approval and fostering arrangements.

An additional bedroom is not automatically granted simply because you have expressed an interest in fostering. The council may need evidence that you are approved, or that the applicable rules otherwise recognise your need for the space.

Applying for Housing Benefit

• Contact the council responsible for your Housing Benefit claim and request the appropriate application process.
• Provide details of your tenancy, rent, household members, income, savings and benefits.
• Explain that you are a foster carer and include evidence of your approval and fostering payments if requested.
• Check the council’s decision carefully, including the eligible rent, income figures and number of bedrooms used in the assessment.

Report changes promptly. Relevant changes may include a new fostering placement, a child leaving your care, a change in rent, moving home, changes to your household or changes in other income. Although the fostering payments themselves are generally disregarded, the circumstances around your claim can still change the result.

Housing Benefit and Universal Credit are different claims

You cannot normally receive Housing Benefit and the Universal Credit housing element for the same housing costs. If you are of working age and do not fall within an exception, Universal Credit is likely to be the relevant route for help with rent. Fostering payments are also treated separately from ordinary earnings within benefit calculations, but you should report them accurately and follow the instructions for the benefit you claim.

If you are moving from Housing Benefit to Universal Credit, ask how the change will affect your existing support before making a claim. The timing and reason for a claim can matter, particularly if you are moving home or your accommodation type is changing.

Housing Benefit is also separate from Council Tax Reduction, which is administered under different rules. You may need to make a separate application to your council if you want your Council Tax assessed for a reduction.

Because fostering households can have unusual bedroom, income and household arrangements, ask your council for a written assessment if the position is unclear. Your fostering service can also help you understand which fostering documents to provide, while an independent benefits adviser can explain how the rules apply to your wider circumstances.