We have just come across a case where the term 'Kinship Allowance' has been mentioned. Has anyone heard of this allowance? Is it the same as Guardian's Allowance? What effect has it on other benefits?
Would be grateful for any information on this.

Tony

Hi Tony

Kinship care is the care of a child/young person by family members or close friends where the child’s family home ‘breaks down’. It may be for a short or much longer period.

This arrangement can often be more beneficial for the child/young person than formal foster care with strangers.

If the child is a local authority ‘looked after child’ then a kinship allowance will (or should) be paid to the carer, usually from the LA’s fostering service.

Regards
Paul

Thanks very much for that, Paul.

First apologies for late reply.

Second, as Paul says 'kinship care' is the generic term LA Childrens Services tend to use for chldren cared for by family members, eg. grandparents.

However 'kinship allowance' could mean a number of things as there are a number of ways an LA can provide support in these circumstances:
1. fostering - LA can pay a fostering allowance under S.23 Children Act. In that case no benefits or Tax Credits (except DLA) can be paid i.r.o the child concerned as with other foster children
2. however many LA's are keen to move away from this to reduce the number of looked after children. As an alternative they may pay a residence order allowance under para.15, Sch.1, Children Act, if the Court has given a residence order to the kinship carer
3. However again residence orders are now being displaced in the Courts by special guardianship orders. These can also attract LA support under S.14F Children Act

In cases 2 and 3 above CHB and CTC can be claimed i.r.o the child concerned and payments are completely disregarded for Tax Credits. For IS and HB payments under a residence order are disregarded only above the amount of personal alloowances and premiums for the child concerned.

Which type of paymenmt it is therefore matters a lot. If someone receives a fostering allowance, there is nothing to be claimed. If someone receives payments under a residence order or SGO, they should be claiming CTC (not IS).

I strongly suspect the people in this acse are receiving payments under a residence order or SGO, because CHB is being deducted. The existence or otherwise of a Court order will be decisive.

Richard Atkinson
Wirral Welfare Rights Unit