Can foster carers claim housing benefit?

Housing Benefit entitlement is assessed by the local authority using your housing costs, age, income, savings, household circumstances and the type of accommodation you rent. Fostering payments are normally disregarded in the means test, but becoming an approved foster carer does not automatically create entitlement to Housing Benefit or guarantee that all of your rent will be covered.

Who may need to claim Housing Benefit?

Most working-age tenants who need help with rent make a claim for the housing costs element of Universal Credit. Housing Benefit still applies in some circumstances, including where the claimant has reached State Pension age or lives in certain types of supported or temporary accommodation. The rules are specific, so your claim route depends on both your circumstances and your tenancy.

If you already receive Housing Benefit and later make a Universal Credit claim, your rent support will usually be considered within Universal Credit instead. Supported or temporary accommodation can be an important exception, because Housing Benefit may continue to deal with the rent while Universal Credit covers other living costs.

How fostering payments are treated

Local authorities generally disregard fostering allowances and other approved fostering payments when calculating Housing Benefit. This means the money intended to meet the costs of caring for a foster child should not usually be treated in the same way as wages or ordinary household income. However, the council may need to identify the type of payment and understand how it is recorded, particularly if you receive several forms of fostering-related income.

You should provide accurate information about fostering when applying. Include your approval or placement details where relevant, and keep statements or payment records in case the council asks how the money has been calculated. Do not leave fostering payments out of the application without explanation; state them clearly and indicate that they are fostering payments.

How your rent and home are assessed

Housing Benefit is based on eligible housing costs rather than simply the amount shown on your rent statement. Some service charges may be included, while charges for items such as personal care, heating, meals or other ineligible services may be excluded. If you rent privately, the maximum amount considered can also be affected by Local Housing Allowance rules. If you rent from a social landlord, the council will assess the eligible rent under the applicable rules.

Your household and the size of your accommodation can also affect the calculation. Foster children are not automatically treated in exactly the same way as birth children or other dependants for every benefit rule. Approved foster carers may have specific bedroom considerations, particularly where a room is needed for fostering, but the outcome depends on the detailed Housing Benefit regulations and your current fostering circumstances. Tell the council whether you are approved, whether a child is placed and how bedrooms are being used.

Other factors the council considers

• whether you are legally liable for the rent;
• whether the tenancy is a genuine commercial arrangement;
• your earnings and any other household income;
• your capital and savings under the relevant benefit rules;
• the circumstances of any partner or other people included in the assessment;
• your age and whether you receive Pension Credit; and
• whether your accommodation is temporary, supported or subject to special housing arrangements.

A claim can be affected if you rent from a close relative who lives in the same property, or if the council decides that a tenancy has been created mainly to obtain benefit. This does not mean that every family letting arrangement is excluded, but the authority may ask for evidence that the agreement is genuine and that rent is actually due.

How to apply

• Check whether you need to claim Housing Benefit or the housing costs element of Universal Credit.
• Apply through the council responsible for your Housing Benefit claim, using its application process.
• Provide your tenancy agreement, rent details, identity documents, bank or savings information and evidence of income.
• Give details of your fostering approval and any fostering payments, explaining how they are paid.
• Report changes to your rent, household, benefits, earnings, savings or fostering arrangements.

If you are already receiving Universal Credit, report housing costs through your Universal Credit account rather than submitting a separate Housing Benefit claim, unless you are in an arrangement where Housing Benefit remains responsible for the rent. Claimants in supported or temporary accommodation should ask the housing provider or council which benefit is responsible before applying.

The council’s decision notice should explain the income, rent and household information used in the calculation. Check it carefully, especially if fostering payments have been counted as ordinary income or if the accommodation has been assessed as having fewer eligible bedrooms than you need for fostering. Ask the council for a written explanation if anything appears incorrect.

If you disagree with the decision, you can request a mandatory reconsideration and then appeal to an independent tribunal if the issue is not resolved. Benefit rules and the treatment of particular fostering arrangements can be complex, so obtain advice from the council, a welfare rights adviser or your fostering support team before making assumptions about entitlement.