Do informal kinship carers receive financial support?

Informal kinship carers may be able to receive help, but they are not usually entitled to a fostering allowance simply because a child in their family lives with them. An informal arrangement is generally one made directly within the family, with the child’s parents’ agreement, rather than one arranged by children’s services. The financial support available will depend on the child’s legal status, the reason for the arrangement and the policies of the local authority.

What counts as informal kinship care?

Informal kinship care can include a grandparent, aunt, uncle, older sibling or another connected adult caring for a child without the local authority placing the child with them as a looked-after child. The child may live with the relative temporarily or for a longer period. The arrangement might be recorded in writing, but it does not normally involve foster carer approval or a fostering placement agreement.

Because the local authority has not necessarily placed the child, it may not have the same duty to pay an allowance that applies when a child is looked after and placed with an approved foster carer. This is why a family member should establish the legal and practical position before relying on an informal arrangement continuing without financial help.

Types of help that may be available

• Local authority assistance: Children’s services may be able to provide practical or financial assistance where this is necessary to safeguard or promote the child’s welfare. The form and level of help are decided according to the child’s needs, the family’s circumstances and the local authority’s duties and policies.
• Help with immediate costs: In some circumstances, support may be considered for essential items such as clothing, furniture, travel or arrangements needed for the child to live safely with the kinship carer. This is not an automatic entitlement, and the local authority may assess the request before agreeing help.
• Benefits and tax credits: A kinship carer may be able to claim support through the benefits system if they meet the relevant conditions. Possible help can include Child Benefit or Universal Credit, depending on who is responsible for the child, household income, work circumstances and the child’s living arrangements. Benefits should be checked separately from local authority payments because one does not automatically create entitlement to the other.
• Housing and other public services: A change in the child’s living arrangements may affect housing needs, school transport or access to other services. The relevant council department should explain what assistance can be considered in the particular circumstances.

A payment offered by a local authority may be discretionary, temporary or linked to a specific need. It may also be subject to a financial assessment. Ask the council to explain whether any proposed payment is a one-off contribution, a regular allowance, reimbursement of agreed costs or part of a wider support plan.

When the child’s legal status changes

Financial support can be different if the child becomes looked after, is placed by the local authority under a formal arrangement, or lives with the kinship carer under a legal order such as a Special Guardianship Order, Child Arrangements Order or adoption order. These arrangements have different rules, responsibilities and possible support packages.

For example, a person caring for a looked-after child may need to be assessed and approved as a foster carer, including completing checks and training. An approved kinship foster carer may then receive fostering allowances under the applicable arrangement. That is separate from an informal family arrangement and should not be assumed to apply retrospectively.

A Special Guardianship Order can also involve financial support, but this depends on the child’s needs, the carer’s circumstances and the local authority’s assessment and policy. If a family is considering applying for an order, it is important to ask about financial support before the order is made. The route to support may be more limited once the arrangement has already been established.

How to ask for financial support

• Contact the children’s services department in the area where the child lives and explain that you are providing, or expect to provide, kinship care.
• Ask for a child and family assessment and an explanation of the support available for the proposed arrangement.
• Give clear information about the child’s needs, your household income and expenses, travel, childcare, housing and any changes needed to accommodate the child.
• Ask whether the council’s financial support policy includes informal kinship carers, and whether an application must be made before costs are incurred.
• Request any decision in writing, including the reason for the decision, the period covered, conditions attached and how to request a review or appeal.

Keep receipts and records of significant costs, but do not assume that every expense will be reimbursed. If the child is already living with you, explain any urgent financial or safeguarding concern when contacting the council. Where the arrangement is being considered because a parent cannot safely care for the child, ask for advice before agreeing to take on responsibility, particularly if there is disagreement about contact, parental responsibility or where the child should live.

Where to obtain reliable advice

A local authority children’s services team, welfare rights adviser or family law adviser can help clarify which support route applies. A kinship carer should also check whether claiming a benefit, accepting a council payment or applying for a legal order could affect other support. Written advice is particularly useful where several family members share care or where the child’s parents continue to provide some financial support.

In summary, informal kinship carers can receive financial or practical help in some circumstances, but there is no general automatic fostering allowance for an informal arrangement. The most important factors are the child’s legal status, the local authority’s involvement, the child’s assessed needs and the carer’s financial circumstances.