Can foster carers claim Universal Credit?

Eligibility for Universal Credit depends on your household circumstances, not simply on whether you are a foster carer. You may qualify if you meet the general conditions for Universal Credit, which can include your age, residence, income, savings, housing situation and whether you have a partner or dependent children.

Universal Credit is usually claimed jointly by couples, even if only one person is fostering. The Department for Work and Pensions looks at the couple’s combined circumstances when deciding entitlement. Your award may include support towards housing costs and children who are your responsibility, where the relevant conditions are met.

A fostered child is not normally treated in the same way as your own or legally adopted child for the Universal Credit child element. Foster carers should therefore avoid assuming that a placement will automatically increase their Universal Credit award. The fostering allowance is intended to contribute towards the costs of caring for the child, while Universal Credit uses separate rules to assess household entitlement.

Fostering and Universal Credit use different assessment systems. Even where fostering payments are not included in the Universal Credit income calculation, you should still tell the DWP that you foster and provide any information requested. Keep records of your fostering payments and relevant expenses, particularly if fostering is also treated as self-employment for tax purposes. The tax treatment of fostering income does not automatically determine how every benefit is assessed.

Your claimant commitment should take account of your fostering responsibilities. Work-related requirements can depend on the age and needs of the child, whether a child is placed with you and your wider circumstances. Tell your work coach about your approval and any placements so that your commitments reflect the care you are providing. Requirements can change when a placement starts, ends or changes.

When applying, you will generally need information such as:

• your identity and National Insurance details;
• your partner’s details, if you are making a joint claim;
• your bank or building society details;
• information about rent, mortgage or housing costs;
• details of earnings, pensions and other income;
• information about savings and investments; and
• details of children or other people who form part of your household.

Universal Credit is assessed over monthly assessment periods. Changes such as a new fostering placement, a placement ending, a change in rent or a change in household income should be reported through your Universal Credit account. Reporting changes promptly helps ensure that your award is assessed using current information.

If you already receive benefits such as Working Tax Credit, Child Tax Credit, Income Support or income-based Jobseeker’s Allowance, claiming Universal Credit can affect or end those benefits. The move to Universal Credit is not always reversible, so obtain a benefits check before making a claim if you are unsure how the change could affect your household.

Universal Credit may also interact with other forms of support, including Council Tax Reduction and help with childcare or housing costs. These schemes have their own rules and may be administered by different organisations, so qualifying for Universal Credit does not automatically mean that you qualify for every related benefit.

Because fostering placements and household finances can change, the safest approach is to compare your circumstances with the current Universal Credit rules and give complete information about your fostering role. A fostering adviser can help you understand how an application fits alongside fostering allowances, tax responsibilities and other benefits before you apply.