Who pays the kinship fostering allowance?

Payment responsibility follows the legal status of the placement and the fostering service responsible for it. For an approved kinship foster placement, the organisation that arranged and manages the fostering placement normally processes the allowance. This is usually the child’s responsible local authority, although an independent fostering agency may administer payments where it is involved in the placement.

Where a local authority approves the kinship foster carer , its fostering or finance department usually pays the allowance directly into the carer’s nominated bank account. This can apply even if the carer lives in a different council area from the child. The important authority is generally the one responsible for the child’s care and placement, rather than simply the council where the foster carer lives.

Where an independent fostering agency is involved , the agency may make the payment under its agreement with the placing local authority. The local authority remains responsible for arranging and funding the placement, while the agency may handle the carer’s allowance, support and related administration. The fostering service should explain this arrangement before approval or placement.

The allowance is paid to the approved kinship foster carer, not to the child’s parent or directly to the child. It is intended to contribute towards the ordinary costs of caring for the child, such as food, clothing, household expenses, travel and activities. Additional payments may sometimes be available for particular needs or agreed expenses, but these are separate from the basic fostering allowance and are not automatic.

Payment arrangements can be different where the child is living with a relative or connected person under another legal order. A child arrangements order, special guardianship order or informal family arrangement is not the same as kinship fostering. In those circumstances, the carer may need to ask the local authority about a different type of financial support rather than a fostering allowance.

Before relying on an allowance, ask the social worker or fostering service to confirm:

• which organisation will make the payment;
• whether the placement is being approved as kinship foster care;
• the agreed allowance rate and what it is intended to cover;
• when the first payment will be made and how often payments will follow;
• whether any additional expenses or specialist payments can be considered; and
• who to contact if a payment is late, incorrect or changes after a review.

During assessment, the proposed payment arrangements should be recorded in writing as part of the placement and financial information provided to you. If the child is already living with you under an emergency or temporary arrangement, do not assume that the payment process will happen automatically. Ask for confirmation of the approval status, the responsible finance team and any forms or bank details required.

The person who pays the allowance may also differ from the person who provides day-to-day support. For example, a local authority finance team may process the money while a social worker or supervising social worker discusses the child’s needs and placement plans with you. Keeping both contacts’ details makes it easier to raise questions about payments without delaying discussions about the child’s care.