Children's Handbook Scotland 2020/21Chapter 6: Children who are 'looked after and accommodated'1. Benefits and tax credits for children who are 'looked after and accommodated' Means-tested benefits
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Means-tested benefits
Universal credit
If your child is looked after and accommodated, s/he is no longer included in your universal credit (UC) claim, unless it is a ‘planned short break’ (respite).1Reg 4 UC Regs This means that any child element you receive stops.2Reg 24 UC Regs If you are in rented accommodation, the housing costs element is calculated as if the child is still living with you for the first six months of absence from home.3Sch 4 para 11(2)(a) UC Regs. The rules say that the absence must be temporary, but it is unclear whether the DWP would question whether the child is temporarily or permanently absent. If your child is looked after and accommodated, s/he does not count as a dependent child for the purpose of calculating your work allowance (see here). If you have been getting help with childcare costs for the child, this stops. The changes to your UC take effect from the start of the assessment period in which they happen. The ‘assessment period’ is a period of one month.
Example
Jill claimed UC on 15 May 2020. This means that her first assessment period for UC is 15 May 2020 to 14 June 2020 and every assessment period after that follows the same dates (15th of the month to 14th of the following month). Her child becomes looked after and accommodated on 30 September 2020. All the changes that happen as a result of that take effect from the start of the assessment period in which that date falls – ie, 15 September 2020 to 14 October 2020. For example, the child element will stop being included in her UC from 15 September 2020.
Your ‘claimant commitment’ (see here), which sets out what you have to do to keep receiving your full UC, might change.
Note: if the only reason you are exempt from the benefit cap (see here) is because a child for whom you are responsible is entitled to disability living allowance (DLA) (or personal independence payment – PIP), this exemption ends if the child no longer counts as part of your household.4Regs 79 and 83 UC Regs
 
1     Reg 4 UC Regs »
2     Reg 24 UC Regs »
3     Sch 4 para 11(2)(a) UC Regs. The rules say that the absence must be temporary, but it is unclear whether the DWP would question whether the child is temporarily or permanently absent. »
4     Regs 79 and 83 UC Regs »
Income support and jobseeker’s allowance
 
If you do not get amounts for your child
If your income support (IS) or income-based jobseeker’s allowance (JSA) does not include amounts for your child, the amount of these benefits is not normally affected when your child becomes looked after and accommodated (but see below for other implications).
If, as a result of your child being looked after and accommodated, you are no longer caring for a child aged under five, you are not able to claim IS as a lone parent. This is because the child no longer counts as a member of your household.1Reg 16(5)(c) and Sch 1B para 1 IS Regs This takes effect as soon as your child is looked after and accommodated.
If you are getting carer’s allowance (CA) for your disabled child and the child is looked after and accommodated, any carer premium in your IS/income-based JSA may be affected or the basis for your IS claim might be affected (see here).
Tell the DWP immediately if your child is looked after and accommodated.
 
If you still get amounts for your child
Your IS or income-based JSA might still include amounts for your child (personal allowances and premiums). This will only be the case if you have been getting IS/income-based JSA including amounts for a child since before 6 April 2004 and have not claimed child tax credit (CTC). Your entitlement to the personal allowance for that child and any disability or enhanced disability premium relating to that child stops as soon as your child is looked after and accommodated.2IS Reg 16(5)(c) IS Regs
JSA Reg 78(5)(f) JSA Regs If you then have no children included in your IS/income-based JSA claim, the family premium also stops. The child benefit for that child, which you continue to get for eight weeks, does not count as income during that period.3IS Sch 9 para 5B(2) IS Regs; reg 7(4) and (5)(c) SS(WTCCTC)(CA) Regs
JSA Sch 7 para 6B(2) JSA Regs; regs 8(3) and 4(c) SS(WTCCTC)(CA) Regs
If you are getting CA for your disabled child and the child is looked after and accommodated, any carer premium in your IS/income-based JSA may be affected (see here).
Tell the DWP immediately if your child is looked after and accommodated.
 
1     Reg 16(5)(c) and Sch 1B para 1 IS Regs »
2     IS Reg 16(5)(c) IS Regs
JSA Reg 78(5)(f) JSA Regs »
3     IS Sch 9 para 5B(2) IS Regs; reg 7(4) and (5)(c) SS(WTCCTC)(CA) Regs
JSA Sch 7 para 6B(2) JSA Regs; regs 8(3) and 4(c) SS(WTCCTC)(CA) Regs »
Income-related employment and support allowance
Income-related employment and support allowance (ESA) does not include any amounts for children and is not normally affected when your child is looked after and accommodated. If, however, you are getting CA for a disabled child and the child is looked after and accommodated, any carer premium in your income-related ESA may be affected (see here).
Pension credit
If you are entitled to CA and this stops, the carer addition (part of pension credit – PC) may be affected (see here). Some PC claimants who are responsible for a child/qualifying young person get an additonal amount for her/him in their PC (instead of CTC). If you get a PC additional amount for a child and s/he becomes looked after and accommodated, you will no longer get the PC additional amount unless it is a ‘planned short break’ (respite).1Sch 2A para 4 SPC Regs
 
1     Sch 2A para 4 SPC Regs »
Housing benefit and council tax reduction
If your child becomes looked after and accommodated, your applicable amount (the figure used to calculate how much housing benefit (HB)/council tax reduction (CTR) you get) no longer includes amounts (personal allowance and premiums) for the child.1HB Reg 21(4)(a) HB Regs; reg 21(4)(a) HB(SPC) Regs
CTR Reg 11(3)(a) CTR(S) Regs; reg 11(3)(a) CTR(SPC)(S) Regs See Chapter 1 for more about how HB/CTR is calculated. Your entitlement to the allowance and premiums stops as soon as your child is looked after and accommodated.
If you are on IS, income-based JSA, income-related ESA or the guarantee credit of PC, you are ‘passported’ to maximum HB/CTR. However, your HB may still be reduced because of the number of bedrooms you are deemed to require (the ‘size criteria’). This means that if your HB is calculated using the local housing allowance rules (see here), it may be affected if the child no longer counts as occupying the home and as a result you need fewer bedrooms.2Reg 13D HB Regs If you are under pension age and living in the social rented sector and your child no longer counts as occupying the home, you may be deemed to need fewer bedrooms and be subject to the ‘under-occupation penalty’ (bedroom tax).3Reg B13 HB Regs It may be possible to argue that, even though the child is not part of your ‘household’ for HB, s/he should still count as an ‘occupier’ and still be included in the size criteria – eg, if s/he is not likely to be away indefinitely.4Regs B13(5) and 13D(12) HB Regs define ‘occupier’ as a person whom the relevant authority is satisfied occupies the claimant’s dwelling as her/his home. Seek further advice if you are in this situation.
Your income may reduce (eg, because CTC has stopped) and this also affects the amount of HB/CTR to which you are entitled, unless you are already getting the maximum amount of HB/CTR.
If you are struggling to pay your rent because of changes to your HB entitlement, apply for a discretionary housing payment (see here).
Tell the HB/CTR office immediately if your child is looked after and accommodated. Also inform the local authority when your CTC stops. This is because CTC counts as income for HB/CTR, so if you are no longer getting it, you may be entitled to more HB/CTR.
Note: if the only reason you are exempt from the benefit cap (see here) is because a child for whom you are responsible is entitled to DLA (or PIP), this exemption ends if the child no longer counts as part of your household.5Regs 75A and 75F HB Regs
 
1     HB Reg 21(4)(a) HB Regs; reg 21(4)(a) HB(SPC) Regs
CTR Reg 11(3)(a) CTR(S) Regs; reg 11(3)(a) CTR(SPC)(S) Regs »
2     Reg 13D HB Regs »
3     Reg B13 HB Regs »
4     Regs B13(5) and 13D(12) HB Regs define ‘occupier’ as a person whom the relevant authority is satisfied occupies the claimant’s dwelling as her/his home. »
5     Regs 75A and 75F HB Regs »
Scottish child payment
If your child becomes looked after and accommodated, Scottish child payment will stop if you no longer count as responsible for the child (see here).