UK Kinship Care Allowance: A Complete Guide for 2026/27
Grandparents, aunts, uncles and other relatives raising a child through special guardianship or a child arrangements order can get discretionary financial support from their local authority. This guide explains how kinship care allowances work, how they compare with fostering pay, and what other benefits kinship carers can claim.
Kinship care describes a child being raised by a relative or close family friend rather than their birth parents, an unrelated foster carer, or through adoption by an unrelated family. It can arise informally within a family, or be formalised through a court order — most commonly a special guardianship order or a child arrangements order — or, less commonly, through the local authority formally approving the relative as a kinship foster carer.
Special Guardianship Allowance
A special guardianship order gives the carer parental responsibility for the child, sharing it with (but with greater legal weight than) the birth parents, until the child turns 18. Local authorities have a duty to consider whether financial support is needed for a special guardian, but this support is discretionary and means-tested: it usually starts from a comparison with the local fostering allowance rate, then reduces to reflect the carer's income, any Child Benefit or other benefits received for the child, and the specific needs assessment carried out. This means the amount paid varies significantly between local authorities and between families, and some special guardians on higher incomes receive no ongoing allowance at all.
Child Arrangements Order Support
A child arrangements order (which replaced the old residence order) sets out who a child lives with and spends time with. Local authorities can, but are not obliged to, provide discretionary financial support to carers under such an order, again assessed on a means-tested basis similar to special guardianship support. Support is generally more likely, and often more generous, where the child was already being looked after by the local authority (for example in foster care) immediately before the order was made, reflecting the local authority's existing responsibility for that child.
Vs Formal Kinship Fostering
Where a relative is formally approved by the local authority as a kinship foster carer, the child remains legally "looked after" by the local authority, and the carer receives the same recommended national minimum fostering allowance (reviewed annually) as any other approved foster carer, alongside fostering support, supervision and training. This is a materially different — and generally better-funded — legal and financial arrangement than special guardianship or a child arrangements order, but it also comes with more local authority oversight and a formal fostering assessment process, and does not give the same long-term parental responsibility that a special guardianship order provides.
Other Benefits You Can Claim
Child Benefit — normally claimable in the same way as a birth parent once a special guardianship or child arrangements order is in place
Universal Credit child elements, or legacy Child Tax Credit if still in payment
Healthy Start scheme vouchers for pregnant women and children under 4 in lower-income households
Council Tax Reduction, depending on household income and composition
Guardian's Allowance in the narrower, separate case where both of the child's parents have died
Settling-In and One-Off Support
Many local authorities can provide a one-off settling-in grant or contribute towards specific costs of taking on a child — such as buying a bed, adapting a home, or covering some legal costs of the court application — separately from any ongoing allowance. Ask your local authority's children's services or kinship care team what one-off support is available locally, as this is rarely advertised proactively.
Kinship care is where a child who cannot live with their birth parents is raised by a relative or close family friend — such as a grandparent, aunt, uncle, or older sibling — rather than an unrelated foster carer or adoptive parent. It can be arranged informally, through a child arrangements order, a special guardianship order, or, less commonly, through formal kinship foster care approved and supervised by the local authority.
Is there a fixed national kinship care allowance in England?
No. Unlike fostering allowances, which have a recommended national minimum, there is no single fixed national kinship care allowance for special guardians or those with a child arrangements order. Financial support is discretionary and decided by the local authority (or the relevant body in Scotland, Wales or Northern Ireland) based on an assessment of the family's needs and circumstances, which means support can vary significantly between areas.
What is a special guardianship allowance?
A special guardianship allowance is discretionary financial support a local authority may pay to a special guardian following a special guardianship order, intended to help meet a child's needs. It is usually assessed against the fostering allowance rate as a comparator but is means-tested, taking into account the carer's income and other financial support (such as Child Benefit) already being received, so many special guardians receive less than the equivalent fostering rate, or nothing at all if their income is above the local authority's threshold.
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What support is available under a child arrangements order?
A child arrangements order (which replaced residence orders) can also come with discretionary local authority financial support, generally assessed in the same means-tested way as special guardianship support, though local authorities have wide discretion over whether and how much to pay. Support is more likely where the child was previously looked after by the local authority before the order was made.
Can kinship carers claim Child Benefit and the standard child-related benefits?
Yes. Special guardians and those with a child arrangements order can generally claim Child Benefit for the child in the same way a birth parent would, and can also claim Child Tax Credit (where still in payment) or the child elements of Universal Credit, along with other standard benefits such as Healthy Start vouchers, subject to the normal eligibility rules.
How does kinship care allowance differ from a formal foster carer's allowance?
A formal kinship foster carer — where the local authority formally approves a relative as a foster carer under fostering regulations — receives the same fostering allowance (with a recommended national minimum rate, reviewed each year) as any other approved foster carer, is subject to fostering assessment and supervision, and the child remains "looked after" by the local authority. Special guardians and those with a child arrangements order are not "looked after" children in the same legal sense, do not have automatic entitlement to the fostering rate, and receive means-tested discretionary support instead.
Is a kinship/special guardianship allowance taxable?
Special guardianship and child arrangements order financial support paid by a local authority to help meet a child's needs is generally not treated as taxable income of the carer, in a similar way to how fostering allowance within the qualifying care relief limits is generally tax-free, though the position can depend on the specific structure of payments — check with the local authority or HMRC if in doubt.
Can I get financial support for the transition to becoming a special guardian?
Yes, in many cases. Local authorities can make a one-off or time-limited settling-in payment or contribute towards costs such as adapting a home, buying furniture or equipment, or legal costs of applying for the order, in addition to any ongoing means-tested allowance, though this again depends on the local authority's policy and the family's assessed needs.
Do kinship carers get the same leave and pay rights as adoptive parents?
Not automatically. Statutory adoption leave and pay are generally available to people who adopt a child through an adoption agency, and in some cases to those who become a special guardian, but eligibility rules are specific and not identical to birth-parent maternity or paternity rights — check with your employer and GOV.UK for the exact position based on how the child came into your care.
Where can I get help understanding what support I am entitled to?
Contact your local authority's children's services or kinship care team for an individual assessment, and consider contacting a kinship care charity for practical and emotional support alongside benefits advice — many offer free helplines specifically for grandparents and other relatives raising a family member's child.
Disclaimer: Kinship care financial support varies by local authority and individual assessment; contact your local authority for your own figures. This guide is general information, not legal or financial advice. Always seek independent professional advice for your specific situation.
