What costs can kinship fostering allowance help cover?

A kinship fostering allowance is intended to help meet the reasonable, child-related costs of caring for a child in your household. It is generally not a payment for your time or a replacement for earnings, and it should not automatically be treated as unrestricted household income. The fostering service or local authority should explain the purpose of the allowance and how it may be used in your individual circumstances.

Costs normally need to be connected to the child’s placement. This can include the additional expenditure created by having the child living with you, such as providing suitable sleeping arrangements, replacing or maintaining items needed for their care, and meeting agreed day-to-day requirements. The relevant question is usually whether the expense is reasonable, necessary and directly linked to the child’s needs.

Some costs may be covered through the regular allowance, while others may require separate approval. One-off expenditure at the beginning of a placement can be treated differently from recurring costs. For example, equipment or adaptations needed to make the home suitable may be considered through a start-up payment, setting-up budget or another agreed arrangement rather than through the ordinary weekly allowance. This depends on the fostering service’s policy and the child’s circumstances.

Additional needs may affect what support is available. A child with health, educational, behavioural or emotional needs may require expenditure beyond ordinary care costs. In these situations, ask whether there is a separate assessment or funding route. Do not assume that an increased need will automatically result in a higher allowance; the arrangements should be discussed and recorded by the responsible authority.

The allowance may also be relevant when a placement creates costs for maintaining contact with parents, attending appointments, taking part in agreed activities or meeting requirements set out in the child’s care plan. These arrangements should be considered with the social worker, particularly where the cost is substantial, unusual or likely to continue for a long period.

It is important to distinguish the allowance from other financial help. A local authority may provide separate payments for specific items, professional services, travel arrangements or exceptional expenses. Benefits, grants and education-related funding may also have their own eligibility rules. Receiving a kinship fostering allowance does not necessarily mean that every other source of support is excluded, but the effect on any benefits or tax position should be checked with the relevant adviser.

Keep records of significant expenditure. Retain receipts, invoices and written approval for items that fall outside ordinary household spending. Records can help you demonstrate how an agreed payment was used and make it easier to discuss further support if the child’s needs change. You should not delay essential care while waiting for paperwork, but contact the supervising social worker promptly if you are unsure whether a cost can be reclaimed.

Before accepting or applying for an allowance, ask the fostering service to confirm:

• which costs the regular payment is expected to cover;
• whether there are separate start-up, exceptional-needs or one-off payments;
• what prior approval is needed for higher-cost items;
• which receipts or other evidence must be provided;
• how costs linked to contact, appointments or specialist needs are handled; and
• who to contact if the child’s circumstances or placement arrangements change.

Written guidance is particularly useful because the correct arrangement can vary according to the child’s age, needs, care plan and responsible authority. If an expense is necessary for the child but is not covered clearly by the allowance, raise it before committing to the cost where possible and ask for the decision to be confirmed in writing.