Means-tested benefits

Means-tested benefits

Universal credit

If you are on universal credit (UC), it does not include any child element for a child you are fostering.1Reg 4 UC Regs You do not get any help with childcare costs in your UC for a child you are fostering. The housing costs element for rent is limited depending on how many bedrooms you are deemed to need (called the ‘size criteria’). The size criteria does not include a child you are fostering. You are allowed one extra room in the size criteria, regardless of how many children you foster. This applies while you have a foster child or children living with you and also during a period of up to one year while you are an approved foster carer but do not have a child placed with you.2Sch 4 paras 8, 9, 10 and 12 UC Regs Any income from fostering that you receive does not count as income for UC.3Reg 66 UC Regs

If you are the ‘responsible foster parent’ (see below) and you are caring for a child aged under one, you are not subject to any work-related requirements (see here).4S19(2)(c) WRA 2012; regs 85 and 89(1)(f) UC Regs If you are the ‘responsible foster parent’ and you are caring for a child aged between one and 16, you are subject to the work-focused interview-only requirement (see here). This can extend beyond the child’s 16th birthday if s/he has care needs which would make it unreasonable for you to meet the work search or work availability requirements, even if these were limited.5Reg 91 UC Regs

If you are claiming UC as a couple and your partner is the ‘responsible foster carer’, you can be subject to the work-focused interview-only requirement if you and your partner are caring for a child or qualifying young person (see here) who has care needs which would make it unreasonable for either of you to meet the work search or work availability requirements, even if these were limited.6Reg 91(2)(c) UC Regs

If you have a gap between placements where you do not have a child living with you, you can continue to be subject to the work-focused interview-only requirement for up to eight weeks, providing this requirement applied to you before the break started.7Reg 91(2)(d) UC Regs

Responsible foster parent

‘Responsible foster parent’ means that either you are the child’s only foster carer or, if you are a member of a couple who are foster carers, you and your partner have nominated you as the ‘responsible foster parent’. Only one of you can be nominated. The nomination applies to all your children and can only be changed once in the 12 months after the nomination or if there has been a relevant change of circumstances.8Regs 85 and 86 UC Regs

 

1     Reg 4 UC Regs »

2     Sch 4 paras 8, 9, 10 and 12 UC Regs »

3     Reg 66 UC Regs »

4     S19(2)(c) WRA 2012; regs 85 and 89(1)(f) UC Regs »

5     Reg 91 UC Regs »

6     Reg 91(2)(c) UC Regs »

7     Reg 91(2)(d) UC Regs »

8     Regs 85 and 86 UC Regs »

Income support

If you are on income support (IS) when you become a foster carer, your IS is not normally affected.

You cannot normally get IS if you are in ‘remunerative work’ of 16 hours or more a week. However, provided you are receiving a fostering allowance, fostering does not count as remunerative work for IS purposes.1Reg 6(1)(k) IS Regs

If you are a single person fostering a child under 16, you can get IS on this basis.2Sch 1B para 2 IS Regs You must actually have a child placed with you to be able to claim IS under this rule – ie, not be between placements.

Note: because of the introduction of UC, you cannot usually make a new claim for IS, but you can continue to get it at the moment if you are already entitled.

Any payment you receive for fostering is disregarded as income for IS.3Sch 9 para 26 IS Regs However, if you are paid any type of payment (such as a retainer) while you do not have a child accommodated with you, this is treated as income.4Sch 9 para 26 IS Regs

 

1     Reg 6(1)(k) IS Regs »

2     Sch 1B para 2 IS Regs »

3     Sch 9 para 26 IS Regs »

4     Sch 9 para 26 IS Regs »

Employment and support allowance

If you are getting income-related employment and support allowance (ESA) when you become a foster carer, your income-related ESA is not normally affected. You cannot get ESA if you are working. However, provided you are receiving a fostering allowance, fostering does not count as work for ESA purposes.1Reg 40(2)(d) ESA Regs Any payment you receive for fostering is disregarded as income for income-related ESA.2Sch 8 para 28 ESA Regs However, if you are paid any type of payment (such as a retainer) while you do not have a child accommodated with you, this is treated as income.3Sch 8 para 28 ESA Regs Note: due to the introduction of UC, you cannot usually make a new claim for income-related ESA, but you can continue to get it at the moment if you are already entitled.

Contributory ESA is not means tested and is not affected by any income you have from fostering.

 

1     Reg 40(2)(d) ESA Regs »

2     Sch 8 para 28 ESA Regs »

3     Sch 8 para 28 ESA Regs »

Jobseeker’s allowance

If you are on jobseeker’s allowance (JSA) when you become a foster carer, your JSA is not normally affected.

You cannot get JSA if you are in ‘remunerative work’. However, provided you are receiving a fostering allowance, fostering does not count as remunerative work for JSA purposes.1Reg 53(f) JSA Regs Any payment you receive for fostering is disregarded as income for income-based JSA.2Sch 7 para 27 JSA Regs However, if you are paid any type of payment (such as a retainer) while you do not have a child accommodated with you, this is treated as income and may reduce the amount of your income-based JSA.3Sch 7 para 27 JSA Regs

Note: due to the introduction of UC, you cannot usually make a new claim for income-based JSA, but you can continue to get it at the moment if you are already entitled.

Contribution-based JSA is not means tested and is not affected by any income you have from fostering.

 

1     Reg 53(f) JSA Regs »

2     Sch 7 para 27 JSA Regs »

3     Sch 7 para 27 JSA Regs »

Pension credit

Some pension credit (PC) claimants who are responsible for a child or qualifying young person get an additional amount for the child(ren) in their PC (instead of child tax credit – CTC). You will not receive an additional amount in your PC for a child you are fostering.1Sch 2A para 4 SPC Regs Any payment you receive for fostering is disregarded for PC purposes. If you receive a payment while you do not have a child accommodated with you (eg, a retainer), this should not count as income unless it is treated as earnings.2s15 SPCA 2002; reg 17B SPC Regs

 

1     Sch 2A para 4 SPC Regs »

2     s15 SPCA 2002; reg 17B SPC Regs »

Housing benefit and council tax reduction

If you are on housing benefit (HB)/council tax reduction (CTR) when you become a foster carer, your HB/CTR is not normally affected. There are no amounts included in your ‘applicable amount’ (see here) for foster children,1HB Reg 21(3) HB Regs; reg 21(3) HB(SPC) Regs
CTR Reg 11(2) CTR(S) Regs; reg 11(2) CTR(SPC)(S) Regs and any payment you receive for fostering is disregarded as income for HB/CTR.2HB Sch 5 para 26 HB Regs; reg 38(2) HB(SPC) Regs
CTR Sch 4 para 30(a) CTR(S) Regs; reg 27(1) CTR(SPC)(S) Regs However, if you are under pension age and you are paid any form of payment (such as a retainer) while you do not have a child accommodated with you, this is treated as income.3HB Sch 5 para 26 HB Regs
CTR Sch 4 para 30 CTR(S) Regs If you have reached pension age and you are paid a retainer, this should not count as income unless it is treated as earnings.4HB Reg 29 HB(SPC) Regs
CTR Reg 27(1) CTR(SPC)(S) Regs

If you are a tenant in the private rented sector (not local authority or housing association), your HB is probably calculated on the basis of a ‘local housing allowance’ (see here). This means that the maximum HB you can get is an amount determined by where you live and how many rooms you and your family require (the ‘size criteria’). The size criteria does not include room(s) for any child(ren) you are fostering, although you are allowed one extra room if you are a foster carer. This applies while you have a foster child or children living with you and also during a period of up to one year while you are approved as a foster carer but do not have a foster child living with you.5Regs 2 and 13D(3A)(b) HB Regs; regs 2 and 13D(3A)(b) HB(SPC) Regs

If you are under pension age and living in the social rented sector, your HB may be reduced if you are under-occupying your home (see here). When assessing whether you are under-occupying your home, you are not counted as needing rooms for any children you are fostering, although you are allowed one extra room because you are a foster carer. This applies while you have a foster child or children living with you and also during a period of up to one year while you are approved as a foster carer but do not have a foster child living with you.6Regs 2 and B13(6)(b) HB Regs

If you are struggling to pay your rent as a result of this or the local housing allowance rules, apply for a discretionary housing payment (see here).

 

1     HB Reg 21(3) HB Regs; reg 21(3) HB(SPC) Regs
CTR Reg 11(2) CTR(S) Regs; reg 11(2) CTR(SPC)(S) Regs »

2     HB Sch 5 para 26 HB Regs; reg 38(2) HB(SPC) Regs
CTR Sch 4 para 30(a) CTR(S) Regs; reg 27(1) CTR(SPC)(S) Regs »

3     HB Sch 5 para 26 HB Regs
CTR Sch 4 para 30 CTR(S) Regs »

4     HB Reg 29 HB(SPC) Regs
CTR Reg 27(1) CTR(SPC)(S) Regs »

5     Regs 2 and 13D(3A)(b) HB Regs; regs 2 and 13D(3A)(b) HB(SPC) Regs »

6     Regs 2 and B13(6)(b) HB Regs »

Scottish child payment

You will not be treated as responsible for a child you are fostering for the purposes of Scottish child payment and, therefore, will not be entitled to Scottish child payment for the child.1Regs 9 and 12 SCP Regs (draft)

 

1     Regs 9 and 12 SCP Regs (draft) »