How much is the kinship allowance for grandparents?

A grandparent’s kinship allowance is usually a locally determined payment intended to help meet the costs of caring for a child within the family. The amount is worked out under the rules for the particular arrangement, rather than being a standard payment for every grandparent. The payment may therefore differ depending on whether you are an approved kinship foster carer, caring under a special guardianship order, or looking after the child through another legal arrangement.

The type of arrangement matters

If the local authority approves you as a connected person foster carer, the payment will normally be based on its fostering allowance framework. This commonly considers the child’s age, everyday care needs and whether the placement requires additional support. A fostering payment may include a maintenance element and, under some schemes, a separate fee or professional payment for the approved carer. These elements should be explained before or during approval.

Other kinship arrangements are assessed differently. Support linked to a special guardianship order may be subject to the local authority’s special guardianship policy and an assessment of the family’s financial circumstances. An informal family arrangement may not automatically qualify for a regular kinship allowance, although the local authority may still assess the child’s needs and offer practical or financial support in appropriate circumstances.

What can affect the amount?

• the child’s age and level of day-to-day care required;
• health, disability, behavioural, emotional or educational needs;
• whether the placement is planned, urgent, temporary or intended to continue long term;
• the number of children being cared for and whether they need to remain together;
• the local authority’s current fostering, kinship or special guardianship policy;
• whether the payment is designed to cover maintenance costs, a carer fee, specific expenses or more than one of these; and
• any financial assessment required for the particular legal arrangement.

Some authorities use different rates for different age groups or levels of need. Additional payments may also be considered for agreed items such as specialist equipment, travel, clothing, activities, adaptations or therapeutic support. These are not necessarily included in the basic allowance, so a grandparent should ask how one-off and recurring costs will be handled.

When should the figure be confirmed?

Ask for the proposed payment before agreeing to the arrangement wherever possible. The written information should identify the regular amount, what it is intended to cover, when payments begin, how they are made, and whether the amount will be reviewed. It should also explain what happens if the child’s needs change or the legal status of the placement changes.

For a connected person fostering assessment, discuss the allowance with the supervising social worker or fostering team. For a special guardianship or other kinship arrangement, the child’s social worker or the local authority’s kinship team should explain the relevant policy. If more than one council is involved, confirm which authority is responsible for assessing and funding the support.

What information should you provide?

The assessment is more likely to reflect the real cost of care if you give a clear picture of the child’s circumstances. Include regular travel, childcare, school-related costs, clothing, food, activities, medical or therapeutic needs and any changes you may need to make at home. Keep receipts and records where possible, particularly for costs that are unusual or directly connected with the placement.

A payment can be reviewed if the child’s needs, the legal arrangement or the local authority’s policy changes. It is sensible to ask how often reviews take place, whether you must report changes in circumstances, and how to request a reassessment if the original allowance no longer meets the agreed costs.

The allowance should also be considered alongside other support that may apply, such as benefits, child-related payments, help with legal costs, training, respite or specialist services. Eligibility and tax treatment can differ according to the legal status of the placement, so do not assume that a payment will be treated in the same way as a fostering allowance in every situation. Request a full written breakdown and obtain independent benefits or tax advice if the effect on your household finances is unclear.

If you are still exploring kinship care, a fostering service or local authority kinship team can explain which arrangement is being considered, how the assessment works and what financial support is available before you make a decision.