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2. Financial help from the local authority
Many, but not all, kinship carers get regular payments from the local authority. If a kinship carer receives payments from the local authority, these are likely to be made under either section 22 of the Children (Scotland) Act 1995 (Section 22 payments), section 50 of the Children Act 1975 (Section 50 payments) or regulation 33 of the Looked After Children (Scotland) Regulations 2009 (sometimes referred to as section 110 of the Adoption and Children (Scotland) Act 2007).
There is a national minimum allowance (called the Scottish Recommended Allowance) introduced with effect from April 2023. The weekly rates (at the time of publication) per child are as follows:1Scottish government announcement: gov.scot/news/new-national-allowance-for-foster-and-kinship-carers
    0–4 year olds: £168.31.
    5–15 year olds: £195.81.
    16 year olds and above: £268.41.
Some local authorities may have higher rates. See here for what the local authority may deduct from these amounts.
 
1     Scottish government announcement: gov.scot/news/new-national-allowance-for-foster-and-kinship-carers »
Section 22 payments
Section 22 of the Children (Scotland) Act 1995 sets out the local authority’s duty to safeguard and promote the welfare of children under 18 in its area who are ‘in need’. Help can be given under this section either in cash or in kind. Section 22 powers are often used to make occasional or short-term payments, but are also used to make regular payments. Section 22 payments can be made to kinship carers of looked-after children and non-looked-after children and can be for a variety of purposes.
Section 50 payments
Section 50 of the Children Act 1975 allows the local authority to make payments towards the maintenance of a child who is under the age of 18 and living with a person other than their parent. Section 50 payments cannot be made to foster carers. Section 50 allows a local authority to make payments to kinship carers, but does not oblige it to do so. Section 50 payments can be made to kinship carers of looked-after children and non-looked-after children, and are for maintenance.
Regulation 33/Section 110 payments
Section 110 of the Adoption and Children (Scotland) Act 2007, together with regulation 33 of the Looked After Children (Scotland) Regulations 2009, allows the local authority to pay an allowance to kinship carers of looked-after children (called ‘approved kinship carers’). The allowance can be for a variety of purposes.
Kinship care allowances guidance
In 2015, the Scottish government and the Convention of Scottish Local Authorities (COSLA) established an agreement for payment of some kinship carers by local authorities.1gov.scot/policies/looked-after-children/kinship-care The aim is that there should be parity between the amount the local authority pays for kinship care allowances and fostering allowances (not including fostering fees).
The arrangement covers:2Arts 4 and 5 KCA(S)O; Part 2 CYP(S)A 2014: National Guidance on Part 13: support for kinship care, available at gov.scot/Publications/2016/07/1045
    kinship carers of looked-after children; and
    kinship carers where the child is subject to a kinship care order under section 11 of the Children (Scotland) Act 1995 or the carer is the child’s guardian under section 7 of the Children (Scotland) Act 1995; and
      the child was previously looked after by the local authority; or
      the child is at risk of becoming looked after; or
      the child was placed with the kinship carer by the local authority.
Scottish government guidance suggests that local authorities deduct any ‘child-related benefits’ to which the kinship carer is entitled, and that a foster carer would not get, from the amount of the allowance. Specifically, the guidance states that child benefit and child tax credit (CTC) (although not the disabled child or severely disabled child elements of CTC) should be deducted if the kinship carer is eligible for these benefits. Guardian’s allowance, if payable, should not be deducted.3Appendix E paras 4, 6 and 7 CYP(S)A 2014:National Guidance on Part 13: support for kinship care, available at gov.scot/Publications/2016/07/1045 The guidance has not been updated to include specific reference to universal credit (UC) and pension credit (PC), but if local authorities are following the logic of the existing guidance, they should disregard the disabled child element/addition if it is included in the kinship carer’s UC or PC. Scottish child payment should not be deducted.4Guidance issued to local authorities on Scottish child payment, Best Start grant and Best Start foods for kinship carers, para 4
Example
Lynne cares for her eight-year-old grandson, Noah, and has been granted a kinship care order. Before she got the kinship care order, Noah was subject to a compulsory supervision order and was therefore ‘looked after’ by the local authority. Lynne gets child benefit and UC child element for Noah and this amounts to £102.52 a week. A foster carer would not get these benefits for a child in their care. The local authority’s fostering allowance rate is £195.81 a week. The local authority deducts £102.52 from the fostering allowance rate and pays Lynne £93.29 a week kinship care allowance.
 
1     gov.scot/policies/looked-after-children/kinship-care »
2     Arts 4 and 5 KCA(S)O; Part 2 CYP(S)A 2014: National Guidance on Part 13: support for kinship care, available at gov.scot/Publications/2016/07/1045 »
3     Appendix E paras 4, 6 and 7 CYP(S)A 2014:National Guidance on Part 13: support for kinship care, available at gov.scot/Publications/2016/07/1045  »
4     Guidance issued to local authorities on Scottish child payment, Best Start grant and Best Start foods for kinship carers, para 4 »
Impact on benefits and tax credits
Local authority payments do not count as income for means-tested benefits.