Can anyone help on this one please? Client and husband are adopting two children which will be placed with them initially for about 3months before the adoption order goes through. She is being given fairly generous adoption financial support package by the LA dealing with the adoption. She has come for advice about other benefit entitlements. So of course we start with looking at whether she can get CHB,however Cpag p96 seems to say that she cannot get CHB whilst getting this adoption financial support.The local authority personel we have spoken to seemed to think that she could claim CHB as they want to reduce her adoption allowance by this amount weekly, hence my confusion.

We also looked at Child Tax Credits which she wouldn't be entitled to without CHB (earns too much for WTC), however Adoption Allowance is ignored as income for tax credits. I am assuming this rule is there for those qualify for WTC anyway.

So is this right - no child benefit whilst LA is paying maintenance for the children? What about when the adoption order is made, will she then be able to claim CHB? Client tells me that she may get allowance for 3+ years.

Any of you local authority specialists out there who've got more experience in adoption issues can you help please..?

Hi,
I had a CHB overpayment on this a wile back, seem to remember that the client did get tax credits but was on a low income . I hope thats answered one of your questions.

Regards

They cannot claim Child Benefit if the child has been placed for adoption by the LA and the LA are making payments in respect of the child's maintenance, accommodation or both (reg 16(4) Child Benefit regs 2003).

Similarly Child Tax Credit not payable either (reg 3, rule4.1, case B Child Tax Credit Regs 2002).

Don't see a problem with working tax credit though.

Regards
Paul

Thanks for your answers, helped to clarify.
Sue

Apologies for very late reply but reply above is misleading. LA's can place a child with foster parents with a view to adoption and make payments under S.23 Children Act, in which case the effects are as nevip outlines. However they usually don't because they are then taking on responsibility for the children.

Much more likely is that the LA are making payments of an adoption allowance under S.57A Adoption Act/S.2(7) Adoption and Children Act 1992.

In that case, as Sue says, the payments are disregarded for Tax Credits, but contrary to nevip, there is no obstacle to CHB - no particular rule on this, it's just that adoption allowances are NOT payments under S.23 so the rules cited by nevip don't apply to exclude the child.

Richard Atkinson
Wirral Welfare Rights Unit

Can someone please advise re Adoption Allowance when assessing income for means tested benefits.
I have a client who is in receipt of Adoption Allowance for 3 children. I am aware the allowance is partially disregarded when assessing for benefits, but does anyone out there know how much for PC & CTB purposes ?

Presumably this is someone over 60. In which case the answer is all of it. No particular provision but adoption allowance is not on the list of income which counts either for PC or for CTB(60+), therefore it is entirely disregarded.

RIchard Atkinson