Is special guardianship allowance means-tested?

Special guardianship allowance is generally means-tested, but passing a financial assessment is not the same as being eligible to apply for, or obtain, a special guardianship order. The local authority considers the proposed guardian’s financial position alongside the child’s needs and the resources already available to the child and household.

The assessment commonly looks at:

• household income, including earnings, benefits, pensions and other regular payments;
• essential outgoings such as rent or mortgage, council tax, utilities, food, transport and existing caring responsibilities;
• savings, capital and other financial resources where relevant;
• the costs of caring for the particular child, including any additional needs or arrangements required;
• benefits, maintenance, grants or other support connected with the child; and
• any significant change in the guardian’s circumstances or the child’s situation.

The local authority uses this information to decide whether financial support is appropriate and how much can reasonably be offered. Its calculation should take account of the actual circumstances of the child and guardian rather than relying only on a standard household-income threshold. Local authority policies and assessment methods can differ, so the outcome is not necessarily the same for every family.

A guardian does not usually need to be receiving benefits or have a particularly low income to be considered for support. Equally, having a limited income does not automatically guarantee an allowance. The authority may decide that the household can meet the child’s costs without ongoing financial support, or that help is justified because the child has expenses that would otherwise be difficult to manage.

Means-testing is also separate from the child welfare assessment. The authority must consider whether the proposed special guardianship arrangement meets the child’s needs and provides a suitable long-term home. Financial support is only one part of the wider decision and should not be treated as a payment for taking on the guardianship role.

Some financial assistance may relate to a particular expense rather than a regular allowance. For example, support may be considered where there are necessary costs associated with caring for the child or putting the arrangement in place. The authority will determine whether such help is available and whether it is subject to a separate assessment or conditions.

When completing the assessment, give a complete and accurate picture of the household’s finances. This normally means providing evidence of income and regular expenditure, explaining unusual costs, and identifying any support the child already receives. If circumstances change after an allowance is agreed, the local authority may reassess the arrangement or ask for updated information.

If you are considering becoming a special guardian, ask the relevant local authority for its financial assessment process before making assumptions about the likely outcome. An independent adviser can also help you understand how the assessment may affect your household budget and what information to prepare.