Are kinship fostering payments means-tested?

Kinship fostering payments are not usually calculated by comparing the carer’s income, savings or household assets with a means-test. Where a child is placed under a formal fostering arrangement and the relative or connected person is approved as a foster carer, the payment is normally linked to the child’s placement and the fostering service’s allowance policy.

That does not mean every family member caring for a child will receive the same support. The child’s legal status and the route by which care has been arranged are important. A local authority placement with an approved kinship foster carer is different from an informal family arrangement, a child arrangements order or a special guardianship order. Each route has its own rules about financial help.

What is considered for kinship fostering payments?

• The fostering arrangement: the payment generally relates to an approved fostering placement rather than simply being paid because someone is related to the child.
• The child’s needs: the allowance may reflect factors such as the child’s age, assessed needs and the level of care required.
• The local authority’s policy: fostering services set out their own rates, payment structure and any additional allowances or expenses they may consider.
• The carer’s approval and training: the carer must complete the required assessment, checks, preparation and approval process before being treated as an approved foster carer.

Your personal finances can still be discussed during the fostering assessment, but this is not the same as means-testing the fostering allowance. The assessment looks at whether the household can provide stable care and manage its finances responsibly. It should not normally operate as a calculation that reduces the fostering payment simply because the carer earns more or has savings.

When might a financial assessment apply?

A means-test may be relevant to a different type of support. For example, a local authority might assess the family’s circumstances when considering discretionary assistance, help under a different legal arrangement or support connected with a special guardianship order. The rules for those payments should not be assumed to apply to a fostering allowance.

Benefits are also assessed under their own rules. Receiving a kinship fostering payment does not automatically mean that every other benefit will stop, but it can affect what support is available and how a claim is treated. The result may depend on the benefit, the child’s circumstances, the carer’s household and the exact fostering arrangement. A benefits adviser or the relevant government service can confirm the position for an individual household.

Does the payment change if the carer’s circumstances change?

The amount may be reviewed if the placement changes, the child’s needs are reassessed, the approval terms change or the local authority updates its policy. A change in wages or savings is not normally the reason for altering a fostering allowance in the way it would be for a means-tested benefit, although a change in household circumstances may need to be reported as part of the fostering arrangement.

Before accepting a placement, ask the supervising social worker or fostering service for its current written policy. It should explain the allowance, any age-related or needs-related differences, payment dates, expenses, additional support and what happens if the placement ends. This is particularly important for kinship carers because arrangements may begin quickly and relatives may initially be unclear about whether they are approved foster carers or caring under another legal route.

In practical terms, the key question is not usually whether the carer passes an income test. It is whether the child is formally placed with an approved kinship foster carer and which payment rules apply to that placement. If the arrangement is being considered, ask the local authority to confirm the child’s legal status and obtain independent benefits advice before making decisions about household finances.