Are kinship fostering payments reviewed during a placement?

Kinship fostering payments are usually checked at planned review points and whenever there is a material change in the placement. A review does not automatically mean the payment will increase or reduce. The outcome depends on the local authority’s fostering policy, the terms of the placement and the evidence about the child’s current needs and the costs of caring for them.

Kinship carers should be given information about how their allowance is calculated. This may be set out in the fostering agreement, payment policy or written information provided by the fostering service. The agreement should explain the type of allowance being paid, any additional payments, what expenses can be claimed and how changes are notified.

A review may consider:

• the child’s age, development, health and support needs;
• whether the child needs additional equipment, transport, childcare or specialist services;
• changes to contact arrangements, education or therapy;
• whether the placement has become more demanding or requires additional supervision;
• changes to the local authority’s allowance rates or payment policy;
• changes in the carer’s approved fostering circumstances, such as household composition or employment; and
• whether agreed expenses are still being incurred and properly evidenced.

Some authorities carry out routine financial or placement reviews at set intervals. Others review payments as part of the child’s looked-after review, the foster carer’s annual review or a separate review of the fostering arrangement. These processes are related but are not necessarily the same. A child’s social care review may focus on safety, wellbeing and care planning, while a fostering payment review focuses on whether the financial support remains appropriate.

Changes in the child’s circumstances can be particularly important. For example, a new medical requirement, a move to a different school, increased travel for family contact or the need for additional supervision may justify asking the fostering service to reconsider the support attached to the placement. The carer should report relevant changes promptly and keep records of significant costs rather than waiting until the next scheduled review.

Payment rates can also change because the local authority updates its fostering allowances. This may affect existing placements differently depending on the authority’s rules, the child’s age band and any protected or agreed arrangements. There is no single UK-wide kinship fostering payment rate, so a change made by one authority should not be assumed to apply elsewhere.

A review should normally result in a clear explanation of the decision. The carer can ask:

• which policy or payment schedule was used;
• what information was considered;
• when any new amount will start;
• whether the decision affects the basic allowance, an additional payment or an expense reimbursement;
• whether a change is temporary or ongoing; and
• how to challenge the decision or request reconsideration.

If the amount is reduced, the carer should ask for the decision and reasons in writing. The fostering service should explain any notice period, transition arrangements and complaints or review procedure that applies. A supervising social worker can help the carer identify the relevant policy and present information about the child’s needs, although the final decision may sit with the local authority or agency responsible for the placement.

It is useful to keep receipts, mileage details, invoices and a short record of additional care tasks. Evidence does not guarantee a particular outcome, but it helps show the practical cost of the arrangement. Carers should also check whether an expense should be claimed separately rather than treated as part of the regular fostering allowance.

Payment reviews are separate from questions about tax, benefits and other household income. A change to a fostering allowance may have implications that are specific to the carer’s circumstances, so independent benefits or financial advice may be appropriate. If the placement changes to another legal arrangement, such as a special guardianship order, the fostering payment rules may no longer apply and a different support agreement may be needed.

For advice about a particular placement, the most reliable starting point is the written fostering agreement and the responsible fostering service. A supervising social worker or social care adviser can explain the review timetable, the evidence required and the available route if the carer believes the payment no longer reflects the child’s needs.