How is a kinship fostering allowance agreed during the assessment?

There is no single national kinship fostering allowance. The payment is usually calculated under the responsible organisation’s fostering policy, using the child’s assessed needs, the type of placement and the costs involved in providing day-to-day care. The assessment should explain how the proposed amount has been reached before approval is completed.

For a kinship carer, the financial discussion normally forms part of the wider connected-person assessment. The assessor considers whether you can provide a safe and suitable home, meet the child’s practical and emotional needs, work with professionals and support the child’s relationships. The allowance is considered alongside these matters rather than as a separate decision based only on household income.

The assessment may look at:

• the child’s age, health, education and care needs;
• the child’s existing routines, activities and contact arrangements;
• any additional equipment, clothing, transport or adaptations needed;
• the size and suitability of your home;
• the time and practical responsibilities involved in caring for the child;
• whether the placement is expected to be short-term, long-term, emergency or part of a planned arrangement; and
• the organisation’s policy for calculating fostering allowances and any additional payments.

The assessor may ask about the likely costs of caring for the child, including food, clothing, household bills, travel, school-related items, activities and personal expenses. You should give a realistic picture of your circumstances rather than trying to estimate a figure from general fostering information. Keep receipts or written details for unusual costs where possible, particularly if the child has needs that create expenses beyond ordinary household spending.

Some organisations use age-related or placement-related rates, while others add specific amounts for assessed needs or agreed expenses. A payment can therefore differ between children and between local authorities or agencies. The allowance may also be separate from one-off help with essential equipment, start-up costs, travel or other expenses. Ask which items are included in the regular allowance and which require prior approval.

Your assessor should explain the proposed rate and the basis for it during the assessment or approval process. Ask for the information in writing, including:

• the regular allowance amount and payment frequency;
• the date payments are expected to begin;
• any additional allowances, fees or reimbursed expenses;
• which costs you must meet from the regular payment;
• what evidence is needed for extra expenses; and
• when and how the payment will be reviewed.

The fostering panel or approving decision-maker may consider the completed assessment, but the panel does not necessarily set the payment itself. The responsible local authority or fostering agency applies its own financial policy and confirms the arrangement. If a child is placed through an agency, check whether the agency pays you directly and how its allowance relates to funding agreed with the local authority.

It is important to distinguish a fostering allowance from other financial support that may apply to kinship carers. Benefits, child-related payments, legal-order support and assistance with specific services can have different eligibility rules. Receiving a fostering allowance does not automatically establish entitlement to every other payment, so obtain separate advice before relying on a benefit or tax assumption.

If the proposed allowance does not appear to reflect the child’s needs, raise this before approval or placement where possible. Ask the assessing social worker to record the concern and explain the review or escalation route. You can also ask what happens if the child’s needs change, a new expense arises or the placement becomes more demanding than originally assessed. Any change should be confirmed by the organisation responsible for the placement rather than assumed.

A careful assessment should leave you knowing not only the proposed amount, but also how it was calculated, what it is intended to cover and when it may be reconsidered. If any part of the financial agreement is unclear, ask your social worker, supervising social worker or local authority kinship team to explain it before you sign the relevant fostering documents.