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Do grandparents receive kinship payments under a special guardianship order?

Grandparents do not automatically receive kinship payments when a special guardianship order (SGO) is made. However, the local authority may provide financial support following an assessment of the child’s needs, the grandparent’s circumstances and any relevant SGO support plan; eligibility and payment arrangements should be confirmed with the responsible local authority.

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Grandparents may receive financial support under a special guardianship order, but an SGO does not create an automatic entitlement to kinship payments. The relevant local authority must consider the child’s needs, the grandparent’s circumstances and the support identified in the child’s special guardianship support plan. The outcome may be regular financial support, help with particular costs, both, or no payment where the assessment does not identify a financial need.

A special guardianship order gives the grandparent enhanced parental responsibility for the child. This is different from fostering: the grandparent is not usually paid a fostering allowance simply because they hold an SGO. Any financial support is arranged under the special guardianship support framework and should be confirmed in writing before, or as part of, the order where possible.

What financial support can include

  • A recurring allowance to help with the costs of caring for the child.
  • A contribution towards specific expenses connected with the child’s care, such as essential equipment, travel or adaptations, where these are agreed.
  • Help with legal or assessment-related costs in circumstances where the local authority’s policy allows this.
  • Support with other identified needs included in the child’s support plan.

The type and level of support depend on the local authority’s policy and assessment. A means test may take account of household income, benefits, savings, expenditure and the child’s needs. The authority may also consider whether the child was previously looked after, whether the placement is likely to prevent the child entering care, and whether there are exceptional costs arising from the child’s circumstances.

How a grandparent applies

  • Ask the child’s social worker or the local authority’s special guardianship team for a financial assessment and details of the local support policy.
  • Provide information about the child’s needs, the proposed care arrangements and the grandparent’s household finances.
  • Take part in the wider special guardianship assessment, which considers the grandparent’s ability to meet the child’s needs and the support required.
  • Ask for the proposed financial arrangements to be recorded in the special guardianship support plan or a separate written agreement.
  • Check how payments will be made, when they will start, whether they will be reviewed and what changes must be reported.

Evidence may include payslips or benefit statements, bank details, household bills, information about childcare or travel costs, and reports describing the child’s health, education or additional needs. The exact documents vary between local authorities, so it is sensible to request the assessment requirements at the outset.

When support can be considered

Financial support is often considered as part of the SGO assessment before the order is made. A grandparent should not assume that a payment will be agreed after the order has been granted. If circumstances change later, the local authority may review the arrangement, particularly where the child’s needs increase, household income changes or an agreed support plan reaches its review point.

Some payments may be conditional on the grandparent providing information for a review or notifying the authority about significant changes. An allowance can also be reconsidered if the child moves out, the SGO ends or the circumstances on which the original assessment was based change. The written agreement should explain these conditions.

SGO support compared with kinship fostering

Under a kinship fostering arrangement, the grandparent is an approved foster carer and payments are normally linked to the fostering placement and the fostering service’s terms. Under an SGO, the grandparent has a different legal role and the payment is based on special guardianship support arrangements. Moving from fostering to an SGO can therefore change both the legal responsibilities and the financial framework. The grandparent should ask for a clear explanation of any effect on existing payments before agreeing to the order.

Financial support under an SGO may also interact with benefits, tax and other means-tested assistance. The treatment can depend on the nature of the payment and the grandparent’s circumstances. Before relying on an allowance, obtain written details from the local authority and check any benefits or tax implications with an appropriately qualified adviser.

If a local authority refuses support, offers an amount that does not reflect the assessment, or fails to explain its decision, the grandparent can ask for the decision and reasons in writing. The local authority’s complaints process, review procedure or relevant support-plan process may provide a route to challenge the decision. Independent legal advice can be useful where the proposed SGO or financial arrangements are disputed.

The key practical point is to discuss money before the order is made, complete the financial assessment fully and avoid relying on an informal promise. A written agreement should identify the payment or assistance, its purpose, start date, review arrangements and the circumstances in which it may change.

Grandparent reviewing a special guardianship support plan with a social worker

There is no single national “kinship payment” that every grandparent receives after a special guardianship order. Financial support is usually considered under the local authority’s special guardianship policy, so the eligibility rules, assessment method and payment arrangements can differ between areas.

This means a grandparent should ask the local authority to explain:

  • which special guardianship financial support policy applies;
  • how household income, benefits and essential costs will be assessed;
  • whether the proposed support is regular, one-off or linked to a particular expense;
  • how long the arrangement is expected to last; and
  • what events could lead to a review or change.

A payment decision should be kept separate from the legal decision about whether an SGO is suitable. Before agreeing to the order, the grandparent should request the financial assessment outcome and any proposed support plan in writing. This makes clear what has been agreed and avoids confusing an SGO allowance with the fostering payments that may apply to an approved kinship foster carer.

Get guidance on special guardianship support

If you need help understanding how a special guardianship order differs from kinship fostering, speak to Become a Foster Family for clear guidance on the questions to raise with your local authority.

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