I have been asked to advise clients who are having a special guardianship order made for 2 children in the near future.

They particularly need to know how housing and council tax benefit,income support will be affected.

From all I've read I believe the allowance will not be taken into account for means tested benefits.

Also that child benefit and child tax credit can be claimed.

However I still feel uncertain and I know this question has been posted before.

Can anyone reassure me Please !!

Lynda

INCOME SUPPORT
SGO allowances (which are paid under S.14F, Children Act) are completely disregarded - para.25(1)(e), Schedule 9, IS (Gen) Regs. - provided the claimant has claimed child tax credit (which your clients should do as soon as the SGO is made by the Court - see below).

HOUSING BENEFIT
Not such good news. SGO allowances are disregarded only above the amount of the personal allowance and DCP for the child concerned - para.25, Sch.5, HB Regs 2006. Any excess is disregarded. In effect payment of SGO allowances removes the child concerned from the HB calculation. There is no loss of HB compared to the situation before the SGO, and might be a small gain if the family wouldn't otherwise have been entitled to the family premium in their HB (family premium isn't offset against SGO allowances). However will only matter for people claiming HB but not IS. If they're on IS, they get maximum HB anyway.

CHB AND CTC
I assume the children are currently fostered, hence no entitlement to CHB or CTC. From the date of the SGO they are no longer fostered, hence no longer excluded from CHB and CTC. SGO allowances are disregarded for CTC under para.11(bb), Table 6, Reg.19, TC (Definition and Calculation of Income) Regs.

Richard Atkinson

Thank you so much for that Richard that has really clarified the situation for me .

Lynda