What is a kinship placement payment?

In practice, a kinship placement payment is the financial arrangement attached to a child’s placement with a relative or another connected person. It is not a single nationally fixed amount or a payment that applies automatically to every family arrangement. The amount, start date, purpose and conditions depend on the child’s legal status, the carer’s approval or assessment status, and the policy of the responsible local authority.

Which placements may involve a payment?

Financial support may be considered where a child is looked after by the local authority and placed with a connected person under fostering arrangements. A relative or connected person may initially be given temporary approval while full assessments are completed. In that situation, the authority should explain how support will operate during the assessment period and whether the payment is treated as a fostering allowance or another form of placement support.

Support can also be considered in connection with a special guardianship order, a child arrangements order or another formal kinship arrangement. These are legally different from fostering, so the payment rules are different too. An allowance attached to one type of order should not be assumed to continue if the child’s legal status changes.

What is the payment intended to cover?

The purpose is generally to contribute towards the costs of caring for the child, rather than to act as wages for the carer. Depending on the local policy and the child’s circumstances, the financial plan may take account of everyday needs such as food, clothing, personal items, household costs, travel and activities. Additional help may sometimes be considered for items or expenses connected with the placement, such as equipment, bedding, adaptations, school requirements or essential travel.

These additional payments are not necessarily included in the regular allowance. Ask the social worker to distinguish between:

• a regular payment intended to contribute towards the child’s day-to-day care;
• one-off or settling-in assistance for immediate costs when a child moves in;
• specific support agreed because of the child’s health, education, contact or other needs; and
• reimbursement of an expense that has been approved separately.

Who decides whether it is paid?

The local authority responsible for the child’s care normally makes the decision, often following an assessment by a social worker and discussion with its fostering, kinship or finance team. The authority should consider the child’s needs, the placement plan and the carer’s circumstances, while applying its own written policy. A payment may therefore differ from the support available to another kinship carer, even where the family situations appear similar.

Where more than one authority is involved, establish which authority is responsible for making the payment and which organisation is providing practical support. The placing authority, the carer’s home authority and any agency involved may have different roles. Ask for this to be confirmed in writing so there is no uncertainty about who should be contacted about an unpaid or incorrect amount.

When should the arrangement be explained?

Payment arrangements should be discussed before, or as soon as possible after, the child moves in. In an emergency placement, it may not be possible to finalise every detail beforehand, but the authority should still explain the immediate arrangements and follow up with written information. The written agreement should ideally state:

• the type of placement and the legal basis for it;
• the date from which support starts;
• the amount and frequency of payments;
• which costs are included and which may need separate approval;
• any conditions linked to assessment, approval or a court order;
• how changes in the child’s circumstances will be dealt with; and
• when the arrangement will be reviewed and how concerns can be raised.

Do not rely on a verbal indication that support will be available. Keep copies of letters, agreements, receipts and messages, particularly where you have bought essential items or paid for travel in expectation of reimbursement.

Does the payment continue automatically?

Not necessarily. Payments may be reviewed when the child’s legal status changes, when a temporary approval ends, when the child’s needs change or when the local authority carries out a scheduled review. They may also be affected if the child moves, the placement ends or a different order is made by the court. A review should explain any proposed change, the date it will take effect and how you can challenge or ask for reconsideration if you disagree.

A kinship placement payment should also be kept separate from other sources of help, such as benefits, child-related payments, education support or payments connected with contact and travel. Some forms of support can affect one another, and tax treatment can depend on the nature of the payment and the carer’s circumstances. Check the wording of the payment decision and obtain specialist advice where the position is unclear.

What if no payment has been offered?

Ask the social worker or kinship team to explain the decision in writing, including the policy used and whether the decision is based on the placement type, approval status or another factor. If the child is formally looked after or placed under an approved arrangement, ask specifically how the authority has assessed the costs of the placement and whether any emergency or settling-in support is available.

If an agreed payment is late, missing or lower than expected, contact the named officer first and provide the relevant agreement and payment records. If this does not resolve the issue, use the local authority’s complaints or review process. Independent advice from a kinship support service, solicitor or welfare rights adviser can help you understand the decision without assuming that every payment route has the same rules.