Kinship Care vs Foster Care in Wales: Key Differences

Two Different Legal Relationships

Kinship care and foster care in Wales serve the same broad purpose — providing a safe home for a child who cannot live with their birth parents — but they operate under completely different legal frameworks with different levels of support and control.

The core difference: a foster carer works for the local authority under its supervision, while a kinship carer with a Special Guardianship Order or Child Arrangements Order holds independent legal responsibility.

How They Compare

Legal status of the child — A child in Welsh local-authority foster care is a "looked after child" under Part 6 of the Social Services and Well-being (Wales) Act 2014, including when accommodated under Section 76, or under a Section 31 care order in the Children Act 1989. Under a care order, the council has parental responsibility alongside the parents. Under Section 76 accommodation, the parents retain parental responsibility. A child living with a kinship carer under an SGO or CAO is not a looked-after child — the carer holds parental responsibility and makes decisions independently.

Who controls day-to-day decisions — Foster carers need local authority approval for many routine decisions: overnight stays, school trips, haircuts, holidays. A special guardian makes these decisions without asking anyone. A CAO holder shares decision-making with birth parents on major matters but handles daily care independently.

Financial support — Foster carers receive a weekly fostering allowance plus, in many cases, a professional skills-based fee. Neither is means-tested. SGO holders receive a means-tested allowance that starts from the fostering rate but deducts Child Benefit and applies a household income assessment. The result is almost always lower than what a foster carer receives for the same child.

Supervision and reviews — Foster carers have regular visits from a supervising social worker, with formal reviews at least annually. Special guardians do not have ongoing social worker visits unless they request support. The SGO support plan is reviewed annually, but the level of contact is much lighter.

Permanence — Foster care placements can end when the local authority decides to move the child. An SGO provides permanence — it lasts until the child turns 18, and a birth parent must obtain the court's leave to apply for discharge.

The Financial Gap

The financial difference is the most contentious issue in Welsh kinship care. When a family member steps in to prevent a child entering the care system, the local authority saves the cost of a foster placement. But the kinship carer typically receives significantly less support.

Many Welsh councils apply a "no detriment" transitional arrangement for former foster carers converting to an SGO, but this protection is time-limited and the long-term allowance drops to means-tested levels. A grandparent on a basic state pension may receive a fraction of what a professional foster carer was paid for the same child.

Kinship Cymru and the Family Rights Group have campaigned for greater financial parity, and the Welsh Government has acknowledged the gap. The Special Guardianship (Wales) (Amendment) Regulations 2018 strengthened assessment duties, but standardised rates remain a policy aspiration rather than a legal requirement.

When Kinship Carers Are Also Foster Carers

Some kinship carers are approved as local authority foster carers — known as "family and friends foster carers" or approved through a Family and Friends Team (FAFT). These carers receive foster care rates and are subject to foster care supervision. If they later obtain an SGO, they move from the foster care framework to the SGO framework, usually with a transitional financial arrangement.

Not all kinship carers need or want to become approved foster carers. The foster care route involves formal approval panels, training requirements and ongoing supervision. An SGO gives you independence without that layer of oversight.

Which Is Right?

The answer depends on your circumstances:

• If the local authority is already involved in care proceedings and you are offered a foster carer assessment, you may benefit from foster care rates in the short term while pursuing a permanent SGO
• If you want independent decision-making authority and long-term security, an SGO is usually the better route
• If you are caring informally and the child is not in the care system, a private SGO or CAO application is the path forward

Getting the Full Picture

The Kinship Care in Wales guide covers all three legal routes — informal care, Child Arrangements Orders and Special Guardianship Orders — with the financial support, assessment process and court procedures explained for each.

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