Kinship Zones Pilot 2026: Which Councils, Eligibility and What You Get

Most special guardianship allowances in England are means-tested, which means the council can reduce your payment based on your household income. The Kinship Zones pilot, launched in April 2026, changes that — for carers in seven specific local authority areas.

What Are Kinship Zones?

Kinship Zones are a Department for Education pilot expected to run from April 2026 to September 2029, with funding for the first two years confirmed and later funding subject to future decisions. It is backed by £126 million in national funding. The pilot pays eligible kinship carers a direct financial allowance that matches the full Fostering National Minimum Allowance (NMA) rate — the same weekly amount foster carers receive — with no means test attached.

The Seven Councils

The pilot is limited to these seven local authority areas:

1. Bexley
2. Bolton
3. Medway
4. Newcastle
5. North East Lincolnshire
6. Thurrock
7. Wiltshire

If you do not live in or receive support from one of these councils, the Kinship Zones allowance is not available to you. Standard means-tested SGO allowances from your own local authority still apply.

Who Qualifies

To receive the Kinship Zones allowance, you must:

• Hold a special guardianship order or a "lives with" child arrangements order for a child under 18
• Be residing in or supported by one of the seven pilot local authorities
• If you hold a "lives with" child arrangements order, the child must meet the pilot's "would otherwise have been in care" test. This test does not apply to SGO eligibility.

Eligible existing SGO holders in the pilot areas may apply. Some carers who have applied for an SGO or "lives with" CAO in private proceedings may also qualify after passing the First Hearing Dispute Resolution Appointment (FHDRA). The participating authority can confirm which eligibility route applies to your case. If you already have an SGO and meet the local criteria, contact your local kinship team to apply.

How Much Is It?

The allowance matches the Fostering NMA rate for the child's age band. These rates are set nationally and increase each year. Unlike standard SGO allowances, the council does not subtract Child Benefit, Universal Credit child elements or any household-income deduction.

Tax and Benefits Treatment

Under a Written Ministerial Statement from 2 March 2026 and a subsequent amendment to Section 744 of the Income Tax (Trading and Other Income) Act 2005, the Kinship Zones allowance is:

• Exempt from income tax (retroactive to 1 April 2026)
• Not counted as income for Universal Credit, Child Benefit, or Council Tax Reduction purposes

For the benefits listed above, the allowance is not counted as income. If you save it, however, the resulting capital may affect means-tested benefits such as Pension Credit or Housing Benefit under the pilot's capital rules.

What If I Am Not in a Kinship Zone?

If you live outside the seven pilot areas, your SGO allowance remains subject to the standard means-tested calculation: the council starts with the NMA baseline, deducts Child Benefit and UC child element, and applies a household means test. The government has not decided whether to offer a national rollout; any future decision depends on the evaluation and future spending decisions.

Regardless of where you live, you can still claim Child Benefit, Universal Credit child elements, and — if one or both parents has died — Guardian's Allowance from HMRC.

For full details on the financial support framework, including how means-tested allowances are calculated and how to prepare for the support plan discussion with your council, see our SGO process guide.

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