Law Commission Kinship Care Consultation 2026: What It Means for Financial Support

What the Law Commission Is Reviewing

The Law Commission published a formal consultation paper on kinship care reform in July 2026. The consultation closed on 16 October 2026. This is the most significant review of the legal framework for kinship care in England and Wales in over a decade.

The consultation examines three broad areas:

• Legal definitions: how the law defines and categorises kinship carers, and whether the current patchwork of informal care, Child Arrangements Orders, Special Guardianship Orders, and kinship fostering creates confusion and inequality
• Order structures: whether SGOs and CAOs are fit for purpose, including whether the financial support obligations attached to each order type need reform
• Financial rights: the central question for most kinship carers — whether the current system, where financial support depends on which legal order you hold and which council area you live in, should be replaced with something more consistent

The review follows years of campaigning by Kinship (formerly Grandparents Plus), the Family Rights Group, and parliamentary committees that have repeatedly highlighted the unfairness of the current system.

Why This Matters for Financial Support

Under current law, the financial support a kinship carer receives depends almost entirely on legal status and geography. An SGO holder in one council area might receive a means-tested allowance equivalent to the fostering rate. An SGO holder in the next borough might receive far less, because each council designs its own means-testing formula and payment scale. A carer with a Child Arrangements Order — who is doing exactly the same job — may receive nothing from the council at all if the child was never formally looked after.

The Law Commission is considering whether:

• A statutory national allowance scheme should replace the current patchwork of discretionary council payments
• The distinction between SGO and CAO holders for financial support purposes is justified
• The Kinship Zone pilot (running in seven councils from April 2026) should become permanent and nationwide
• Informal kinship carers — the largest group, with no court order — should have any statutory financial entitlement beyond mainstream benefits

What the Consultation Cannot Change Right Now

The consultation is a review, not a new law. The Law Commission anticipates publishing its final report and recommendations in autumn 2027; the government then decides whether to legislate. This process typically takes years. No changes to your current entitlements will happen as a direct result of the consultation.

What this means in practice: if you're a kinship carer today, your financial rights haven't changed. The same legal framework under the Children Act 1989 still applies. SGO holders still have a mandatory right to a financial assessment. CAO holders still depend on discretionary council policies. Informal carers still rely on mainstream benefits and Section 17 assistance.

What Kinship Carers Can Do Now

The consultation has closed. It ended on 16 October 2026, so the response form is no longer open. The Law Commission is now considering the responses it received.

Keep records. If the government eventually legislates, transitional arrangements and evidence from the consultation period often shape who benefits from new rules. Maintaining a record of your council's financial decisions, allowance calculations, and any refusals or reductions strengthens any future claim.

Don't wait for reform. The most common mistake is assuming that upcoming changes mean it's not worth applying for support now. If you hold an SGO and haven't requested a financial assessment, do it today. If you're eligible for the Kinship Zone pilot, apply. Any allowance you receive now runs alongside whatever the future system looks like.

The Bigger Picture

The Law Commission consultation sits within a broader wave of kinship care reform — including the Kinship Allowance Pilot, the statutory duty for councils to publish a Kinship Local Offer, and the expansion of Virtual School Head responsibilities to kinship children. Together, these suggest that the gap between foster care financial support and kinship care financial support is narrowing, even if slowly.

For a complete map of what kinship carers in England can claim right now — not what might change in the future — the Money for Kinship Carers in England guide covers every current payment, form, and application route, arranged by legal arrangement.

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