Kinship Care vs Foster Care in Scotland: Allowance Differences

The Parity Promise and the Reality

Since August 2023, the Scottish Recommended Allowance (SRA) has been set at the same maintenance rate for both kinship carers and foster carers. On paper, a kinship carer looking after a 10-year-old should receive the same SRA maintenance amount — £206.71 in 2026–27 — as a foster carer with a child of the same age.

In practice, the two arrangements are financially different. Understanding why helps you know what you're entitled to and where to push back if your council is paying less than it should.

How the Gross Rates Compare

The SRA weekly rates for 2026–27 are identical for kinship and foster care:

At the gross level, the Scottish Government and COSLA have delivered on the promise of rate parity. This was a significant policy change — before the SRA framework, some councils paid kinship carers substantially less than foster carers.

The Deduction Difference

Here's where kinship and foster care diverge. Foster carers cannot claim Child Benefit or Universal Credit child elements for the children in their care — those benefits aren't available because the child is in local authority care and the council is the corporate parent. So foster carers receive the full gross SRA amount.

Kinship carers with a Section 11 Kinship Care Order — where the child is no longer looked after — can claim Child Benefit and the UC child element. The council then deducts those amounts from the gross SRA to calculate a net payment.

For a kinship carer with one child aged 10:

• Gross SRA: £206.71/week
• Child Benefit deducted: -£27.05
• UC child element deducted: -£70.14
• Net council payment: £109.52/week

The net council allowance plus Child Benefit and the UC child element totals £206.71 — the same as the gross SRA maintenance amount in this example. The difference isn't in the amount; it's in the complexity of managing three separate claims and the risk that deductions are applied before the benefits actually arrive in your account.

When Kinship Carers Get More Than Foster Carers

There are payments available to kinship carers that foster carers can't access:

• Scottish Child Payment (£28.20/week): Kinship carers with a child under 16 may qualify if they receive a qualifying benefit such as UC or Pension Credit. Foster carers' eligibility depends on whether they meet the payment's rules for responsibility for the child.
• Guardian's Allowance: Available to kinship carers if both parents are deceased or the surviving parent meets the incapacity, imprisonment, or absence criteria. Not available to foster carers.
• Best Start Grant payments: Kinship carers on a qualifying benefit can receive one-off milestone payments. Foster carers can't.
• National Insurance credits via Child Benefit: Kinship carers who claim Child Benefit accrue NI credits toward their State Pension. Foster carers don't receive these.

When you add Scottish Child Payment and potentially Guardian's Allowance on top of the SRA-equivalent total, a kinship carer's overall package can actually exceed what a foster carer receives for the same age child.

Where Kinship Carers Lose Out

The financial disadvantages of kinship care compared to fostering:

No fee element. Foster carers may receive a "fee" or "skill payment" on top of the maintenance allowance — a payment recognising their professional role. The amount depends on the child's needs and the carer's experience level. Kinship carers don't receive this because the kinship care relationship isn't treated as a professional service.

No training allowances. Foster carers receive funding for mandatory training courses and are compensated for time spent on professional development. Kinship carers aren't part of the same professional development framework.

No guaranteed respite budget. Foster carers typically have an agreed number of respite days per year, funded by the council. Kinship carers may be able to request respite, but it's discretionary and depends on local budgets.

Slower setup support. When a foster carer accepts a placement, the council usually provides immediate setup funding. Kinship carers — especially those in informal arrangements who later formalise — often spend weeks or months covering costs out of pocket before the council assessment is complete.

Your Rights as a Kinship Carer

Under Part 13 of the Children and Young People (Scotland) Act 2014, if you have a qualifying Kinship Care Order and the child meets the eligibility criteria, the council's duty to pay you an allowance is statutory — not a favour or a discretionary grant. The rate must be at least the SRA baseline.

If your council is paying below the SRA rate or applying deductions that don't match the national guidance (for example, deducting Scottish Child Payment, which is ring-fenced by law), you have grounds to challenge. Start with the council's Stage 1 complaints process, escalate to Stage 2 if needed, and take it to the Scottish Public Services Ombudsman (SPSO) if the council doesn't resolve it.

Our Scotland Kinship Financial Help Guide breaks down every payment, every deduction rule, and every agency's role — so you can see exactly what your total package should be and whether your council is calculating it correctly.

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