Can foster carers claim Universal Credit?

The key point is that Universal Credit assesses your wider household circumstances rather than treating fostering payments in the same way as ordinary wages. The fostering allowance is intended to cover the costs of caring for a child, so it is normally left out of the income calculation. Other parts of your financial situation can still affect your claim.

To qualify, you must meet the general Universal Credit conditions. These can include your age, residence, work or earnings position, housing circumstances, savings and whether you are responsible for children or have a health condition. Universal Credit is assessed on a household basis, so a partner’s income and capital may also be relevant.

What may be taken into account?

• Employment income or self-employed earnings that are separate from your fostering payments.
• Your partner’s earnings and other relevant income.
• Savings and investments, subject to the Universal Credit rules.
• Benefits or other payments that the regulations require you to declare.
• Changes to your rent, household members, work or caring responsibilities.

Fostering payments should still be declared when you make a claim or report a change. The Department for Work and Pensions may need to identify the payment correctly and may ask for information such as fostering statements, payment records or details of expenses. Keep clear records and explain which amounts relate to fostering and which relate to other work or income.

Does being a foster carer affect work-related requirements?

It can. Universal Credit considers your actual caring responsibilities when deciding what work-related activities, if any, are reasonable. The position may depend on the age and needs of the foster child, whether you are the child’s main carer, and the arrangements agreed with the fostering service. A foster carer may therefore have different requirements from another claimant in the same household.

Tell your work coach that you foster and provide relevant information about training, meetings, appointments, introductions, placements and the child’s needs. These responsibilities should be considered when your claimant commitment is agreed or reviewed. If your circumstances change, such as a child moving into or out of your care, report the change promptly because it may affect your requirements.

How does housing affect the claim?

Your rent and housing circumstances may be relevant to the housing element of Universal Credit, but eligibility and the amount payable depend on the detailed rules. Foster children are not automatically treated in exactly the same way as birth or adopted children for every Universal Credit calculation. Do not assume that a fostering placement will increase your housing support without checking your individual circumstances.

What should you do when applying?

• Complete the claim using your household’s full financial and personal details.
• Declare fostering payments and explain their source rather than leaving them out.
• Provide information about any other employment, self-employment, benefits, rent, savings and caring responsibilities.
• Keep copies of fostering agreements, payment records and relevant correspondence.
• Check the decision carefully and ask for clarification if the fostering payments appear to have been treated as ordinary earnings.

Fostering income and Universal Credit rules can interact with tax, employment income and other benefits in different ways. A fostering service, welfare rights adviser or benefits adviser can help you check the calculation using your actual household circumstances. If you disagree with a decision, you can ask for it to be explained and consider the formal challenge process within the required time limit.