Special Guardianship Allowance in England: How Much and How It Works

Money is one of the biggest anxieties for kinship carers. You have taken on a child full-time — often at short notice, often on a pension or modest income — and the council's financial support can make or break whether the arrangement is sustainable. Special guardianship allowances exist, but they are not automatic, not uniform, and not guaranteed.

How the Allowance Is Calculated

Under the Special Guardianship Regulations 2005, local authorities are required to maintain a framework for financial and practical support, but the actual allowance is discretionary and means-tested. The calculation works like this:

1. Start with the fostering national minimum allowance (NMA). This is the weekly rate the council pays to foster carers, broken down by the child's age band. It varies slightly by local authority but follows a nationally set floor.
2. Subtract Child Benefit. If you receive Child Benefit for the child, the council deducts it from the baseline.
3. Subtract Universal Credit child element. If you receive this, it is also deducted.
4. Apply the household means test. The council assesses your net disposable income and makes a further deduction based on how much you can afford to contribute from your own resources.

The result is the net weekly SGO allowance. For many families on low incomes, the deductions leave a meaningful payment. For households with moderate earnings, the means test can reduce the allowance to zero.

Which Council Pays?

If the child was previously looked after by a local authority (in foster care or under a care order), the last authority responsible for looking after the child continues to pay the allowance for the duration of the SGO — even if you move to a different area.

If the child was not previously looked after, the local authority where you live handles the assessment and payments.

Annual Reviews

Allowances are subject to mandatory annual review. You will need to complete a financial declaration each year, and the council can adjust or end the allowance if your circumstances change: income rises, the child leaves your care, or the child turns 18.

Negotiate Before the Order Is Made

Here is the advice that catches most carers off guard: your strongest negotiating position on financial support is before the SGO is granted, not after. Once the order is made, the council has less incentive to offer generous terms. If the child is in care proceedings and the local authority wants you to take the child under an SGO instead of continuing in foster care, that is the moment to agree the allowance, the support plan, and the review terms in writing.

Ask for:

• The allowance amount in writing, including the calculation methodology
• Whether the allowance will be reviewed annually or kept at a fixed rate for an initial period
• What practical support is included: respite care, school transport, equipment
• Whether you will be referred for therapeutic support through the Adoption and Special Guardianship Support Fund

Other Financial Support

The SGO allowance is not the only source of help:

• Child Benefit — you can claim this as soon as the child is living with you, even before an SGO is granted.
• Universal Credit child element — if you receive UC, the child element is added for the child.
• Guardian's Allowance — if one or both of the child's parents has died, you may qualify for this HMRC payment (£22.95 per week in 2026/27, tax-free).
• Kinship Zones pilot — if you are eligible in one of the seven participating council areas (Bexley, Bolton, Newcastle, North East Lincolnshire, Medway, Thurrock or Wiltshire), the pilot pays the full fostering NMA rate without a means test.

For a full breakdown of the financial support framework, including a household budget worksheet to prepare for your support plan discussion, see our SGO process guide.

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