Kinship Care vs Foster Care Payments in England
Kinship carers and foster carers both look after children who cannot live with their parents. But the financial support they receive is structured differently, comes from different pots, and follows different rules. The gap is one of the most contentious issues in English child welfare.
Foster Carers: The Fostering Allowance
Approved foster carers — whether mainstream or kinship foster carers — receive a fostering allowance from the local authority. The minimum is set nationally: the National Minimum Fostering Allowance (NMA) varies by child age and region. For 2026/27, weekly minimum rates range from £176 for a child aged 0–2 in the Rest of England to £309 for a 16–17-year-old in London.
Many councils and independent fostering agencies (IFAs) pay above the minimum. The allowance often includes a skill-based fee (reward element) on top of the maintenance component.
Foster carers cannot claim Child Benefit or the Universal Credit child element for foster children. The fostering allowance is designed to replace those national benefits.
The qualifying care relief amount for 2026/27 is £19,690 per household for a full year, plus £415 per week for each child under 11 or £495 per week for each child aged 11 or over. Eligible foster carers may receive qualifying payments tax-free up to this amount; it does not count as income for UC purposes.
Kinship Carers with an SGO: The SGO Allowance
A kinship carer who holds a Special Guardianship Order receives financial support through a different mechanism. The council has a legal duty to assess their need under Section 14F of the Children Act 1989, but the resulting SGO allowance is means-tested.
The calculation starts with the council's core fostering rate for the child's age — the same figure that sets the floor for foster carers — then deducts the Child Benefit and UC child element the carer already receives, and applies a household income test. The net SGO allowance can be substantially less than the gross fostering rate.
The crucial difference: SGO holders also claim Child Benefit and Universal Credit directly from national agencies. When you add the SGO allowance, Child Benefit and UC together, the total may approach the fostering rate — but it rarely matches it, and the means test can reduce it further.
Kinship Foster Carers: Section 20/31 Placements
If the child is formally looked after by the local authority (accommodated under Section 20 or subject to a care order under Section 31) and the relative is approved as a kinship foster carer, the carer receives the full fostering allowance — at or above the NMA rate.
This is the closest to parity with mainstream foster carers. But it comes with foster care obligations: local authority oversight, regular reviews, unannounced visits and restrictions on major decisions. Many kinship carers eventually apply for an SGO to gain legal permanence and independence, at which point the fostering allowance converts to a means-tested SGO allowance — often lower.
Regulation 7 of the Special Guardianship Regulations 2005 provides some protection: former foster carers who become special guardians can receive a remuneration element in their SGO allowance for up to two years post-order.
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The Payment Gap in Numbers
Consider a kinship carer in a council where the fostering rate for an 8-year-old is £200 per week:
- As kinship foster carer: £200/week (minimum), plus no need to claim Child Benefit or UC child element separately
- As SGO holder (no means test reduction): £200 minus £27.05 (Child Benefit) minus ~£70 (UC child element equivalent) = approximately £103/week allowance, plus £27.05 Child Benefit plus UC child element — similar total, but three separate claims
- As SGO holder (after means test): Often significantly less than £103/week, depending on household income
The Kinship Zone pilot addresses this gap directly for seven council areas by paying the full NMA rate without a means test to eligible SGO and CAO holders who meet the pilot criteria, on top of national benefits.
Which Is Better?
Neither — they serve different purposes. Foster care keeps the child legally in the council's care with regular oversight. An SGO gives the child and carer legal permanence. The financial difference is a consequence of the legal structure, not a judgment about who deserves more support.
Our kinship financial help guide maps every payment route side by side, including the exact calculation councils use to convert a fostering rate into an SGO allowance, so you can see what changes when the child's legal status changes.
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