What expenses can kinship payments for grandparents cover?

Kinship payments for grandparents are generally intended to contribute towards reasonable costs that arise because a child is living in their care. The exact expenses covered depend on whether the arrangement is kinship fostering, a child arrangements order, a special guardianship order or another formal agreement, as well as the local authority’s policy and the terms of the payment.

In practice, the payment may help with both regular household costs and expenses connected with establishing a suitable home. Regular support is usually considered in relation to the child’s day-to-day care, while additional funding may be available for costs that are exceptional, unavoidable or specifically approved.

• Setting up the placement: A grandparent may need to obtain furniture, sleeping arrangements, safety equipment or other items needed to make the home suitable. Ask whether one-off setup assistance is available before buying anything, as approval may be required.
• Health and personal care: Some children need extra toiletries, continence products, medical supplies, specialist clothing or equipment linked to a health condition. These costs may be considered separately from the standard payment, particularly where they are recommended by a health professional.
• Education-related extras: Payments may sometimes contribute to agreed costs that are additional to ordinary school requirements, such as specific equipment, educational activities or arrangements needed to support attendance. The school, social worker or local authority should clarify who is responsible for each cost.
• Contact and family arrangements: Where maintaining safe contact with parents or other relatives creates additional costs, the local authority may agree support for practical arrangements. This should be discussed in advance, particularly if supervision or a neutral meeting location is needed.
• Activities and emotional wellbeing: A child’s social, cultural and developmental needs can involve costs for clubs, hobbies, therapeutic activities or other agreed support. Funding is not automatically available for every activity, so the purpose and suitability should be explained before committing to the expense.
• Exceptional or specialist needs: A child with disabilities, trauma-related needs or challenging behaviour may require additional services, equipment or adaptations. These needs should be recorded in the child’s care plan and reviewed with the relevant professionals.

A kinship payment is not necessarily a separate budget for every category of spending. It may be a regular contribution that the carer uses to meet the child’s overall needs, with certain items dealt with through separate applications or one-off payments. The written agreement should explain whether a cost is included in the regular allowance, reimbursed on production of receipts or subject to prior approval.

Before spending a significant amount, a grandparent should ask the social worker or kinship support team:

• whether the expense is eligible under the particular care arrangement;
• whether written permission is needed beforehand;
• what evidence is required, such as receipts, invoices or professional recommendations;
• whether there is a maximum amount or a separate application process; and
• who will pay if the item is declined or the child’s needs change.

Keep a simple record of approved costs, dates, receipts and correspondence. This can prevent misunderstandings and provide useful evidence during a review. If a child’s needs increase, tell the local authority rather than assuming that the existing payment will automatically change. A reassessment may be needed, particularly where the new expense is recurring or specialist.

Grandparents should also check whether another organisation is responsible for a particular cost. Schools, health services, disability support schemes and local authority departments may each have different funding arrangements. Confirming responsibility early helps avoid paying for an item that should be provided elsewhere and ensures that any request for additional kinship support is based on the child’s actual needs.