Who decides the amount of a grandparent’s kinship fostering payment?

The amount is normally determined by the fostering service responsible for approving and supporting the grandparent. In a council-approved kinship fostering arrangement, this is usually the local authority’s fostering service. The council applies its published fostering allowances policy alongside the child’s assessed needs and the circumstances of the placement. If an independent fostering agency is involved, its payment policy may apply instead, although the placing council remains involved in agreeing and funding the child’s placement.

The decision is not usually based simply on the fact that the carer is a grandparent. The fostering service will consider factors such as:

• the child’s age and day-to-day care needs;
• whether the placement is short-term, emergency, respite or intended to continue until adulthood;
• the child’s health, education, emotional wellbeing or additional support needs;
• the practical demands placed on the grandparent, including transport and supervision;
• any specialist equipment, adaptations, clothing, travel or other exceptional costs; and
• whether the grandparent has completed approval and training requirements for the relevant fostering arrangement.

A payment may contain more than one element. The main allowance is intended to contribute towards the ordinary costs of caring for the child, such as food, clothing, household costs, personal items and activities. Some fostering services also operate separate fees, skills payments, start-up payments or additional allowances. These elements are not universal, and a grandparent should ask the fostering service to explain exactly what each payment is intended to cover.

The child’s social worker may provide information about the child’s needs, but they do not normally set a payment independently of the fostering service’s policy. The supervising social worker, kinship team or fostering finance team should be able to explain which policy has been used, whether the amount is a standard rate or an individually agreed sum, and whether additional expenses need prior approval.

Before accepting the placement, a grandparent should request a written breakdown covering:

• the basic fostering allowance and how often it will be paid;
• any fee or payment linked to the carer’s skills or approval status;
• one-off items, such as furniture, clothing or equipment;
• how travel, school-related costs, activities and medical or therapeutic needs will be handled;
• which expenses require permission before they are incurred; and
• when the arrangement and payment will be reviewed.

This information should form part of the placement agreement or related financial documentation. The agreement should also identify who to contact if the child’s needs change or an unexpected cost arises. A verbal explanation is helpful, but written terms make it easier to check what has been agreed.

There is an important distinction between kinship fostering and other legal arrangements. A grandparent caring for a child under a fostering approval is receiving fostering-related support. A special guardianship order, child arrangements order or informal family arrangement follows different financial rules, so the amount cannot be inferred from a fostering allowance policy. The legal status of the placement should therefore be confirmed before comparing payments.

If the proposed amount appears unclear or does not reflect the child’s assessed needs, the grandparent can ask the child’s social worker or kinship team for a full explanation and request a review through the council’s complaints or fostering procedures if necessary. Independent advice from a kinship support service, solicitor or benefits adviser may also help, particularly where the payment could affect other household finances.