I have a 50 year old grandmother who is foster carer to her granddaughter and who receives a family and friends fostering allowance of £85.74. She can't claim income support (capital)and I wonder if she can get WTC
Looking at the WTC regs 4, does this count as work, for payment or in expectation of payment and if so is she excluded by reg 4 2 (b)?
Quite new to the fostering side of things so any help much appreciated.

Hi Sandra

The DWp and HMRC do not recognise the term family and friends fostering allowance. In their language a fostering allowance is simply a payment made by a local authority for a "looked after child", who is a child subject to a care or supervision order, or accomodated under sections 20. 23 or 24A of the Children Act 1989. You therefore need to check whether the child falls within this, or whether the payments are something like residence order payments, special guardianship payments, or discretionary payments made under section 17 of the Act.

If the child is indeed looked after, the fostering is work as far as HMRC is concerned and the gran can claim WTC on the strength of it. Effectively she would be working over 30 hours for zero taxable income under the special rules for fostering income. There is a pile of stuff on the HMRC website and I could dig out the links if you need them.

If the child is not "looked after" the gran could probably claim CB/CTC.

Hi Brian and thank you for your guidance, thats a great help. Have now been onto the TCTM and found the info that I think I need.

I take it that you are working with this particular group of clients and have developed an expertise in this area? I do have a few other questions about the world of foster carers and benefits and wonder if I might be able to contact you by email rather than on the forum? Thanks again

Sandra

We have some information about foster carers and tax/tax credits on our website here:

http://www.litrg.org.uk/help/lowincome/selfemployed/fostercarers.cfm

This may be of some help.

Victoria
(victoriatodd28@yahoo.co.uk)