Children's Handbook Scotland 2020/21Chapter 9: Adoption2. Benefits and tax credits when a child is placed with you for adoption Means-tested benefits
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Means-tested benefits
Universal credit
If the child placed with you for adoption is ‘looked after’ by the local authority, your universal credit (UC) does not include any child element for the child.1Reg 4 UC Regs You do not get any help with childcare costs in UC if the child is still ‘looked after’ by the local authority.2Reg 33 UC Regs 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 will not include a child placed for adoption. You are allowed one extra room in the size criteria.3Sch 4 para 12(1)(b) and (4)(b) UC Regs Any adoption allowance you receive does not count as income for UC.4Reg 66 UC Regs If you are a single person, for the first 12 months after the child has been placed with you, you are not subject to any work-related requirements. If you are a couple, the person who is the main carer for the child is not subject to any work-related requirements.5Reg 89(1)(d) UC Regs For what happens to UC once you have an adoption order, see here.
 
1     Reg 4 UC Regs »
2     Reg 33 UC Regs »
3     Sch 4 para 12(1)(b) and (4)(b) UC Regs »
4     Reg 66 UC Regs »
5     Reg 89(1)(d) UC Regs »
Income support
If you are a single person or lone parent with whom a child aged under 16 has been placed for adoption, you may be able to claim income support (IS) on that basis (although if you are not already on IS, you will usually have to claim UC instead).1Sch 1B para 2A IS Regs If you are on IS when a child is placed with you for adoption, your IS is not normally affected. If you are paid an adoption allowance (before the adoption order is granted), any amount of this that you spend on the child is disregarded in full when working out your income. If you keep any for your own use, it is taken into account as income.2Reg 42(4)(b) IS Regs; para 28174 DMG
For what happens to benefits and tax credits once you have an adoption order for a child, see here.
 
1     Sch 1B para 2A IS Regs »
2     Reg 42(4)(b) IS Regs; para 28174 DMG »
Income-related employment and support allowance
If you are getting income-related employment and support allowance (ESA) when a child is placed with you for adoption and you are paid an adoption allowance (before the adoption order is granted), any amount of this that you spend on the child is disregarded in full. If you keep any for your own use, it is taken into account as income for income-related ESA.1Reg 107(4) ESA Regs; para 51215 DMG
For information on what happens to benefits and tax credits once you have an adoption order for a child, see here.
 
1     Reg 107(4) ESA Regs; para 51215 DMG »
Jobseeker’s allowance
If you are getting jobseeker’s allowance (JSA) when a child is placed with you for adoption and you are paid an adoption allowance (before the adoption order is granted), any amount of this that you spend on the child is disregarded in full. If you keep any for your own use, it is taken into account as income for income-based JSA.1Reg 105(10)(b) JSA Regs; para 28174 DMG
For information on what happens to benefits and tax credits once you have an adoption order for a child, see here.
 
1     Reg 105(10)(b) JSA Regs; para 28174 DMG »
Pension credit
If you are getting pension credit (PC) and are paid an adoption allowance, it is disregarded as income for PC purposes.1s15 SPCA 2002 Some PC claimants who are responsible for a child or qualifying young person get an additional amount for her/him in their PC (instead of child tax credit – CTC). If the child placed with you for adoption is still ‘looked after’ by the local authority, your PC will not include the additional amount for the child.2Sch II2A2A para 4 SPC Regs
For information on what happens to benefits and tax credits once you have an adoption order for a child, see here.
 
1     s15 SPCA 2002 »
2     Sch II2A2A para 4 SPC Regs »
Housing benefit and council tax reduction
If you are getting housing benefit (HB)/council tax reduction (CTR) when a child is placed with you for adoption, your HB/CTR is not normally affected. There are no amounts included in your ‘applicable amount’ (see here) for children placed for adoption.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
If you and your partner have reached pension age (see here), any adoption allowance you are paid is disregarded in full for HB/CTR purposes.2HB Reg 29 HB(SPC) Regs
CTR Reg 27(1) CTR(SPC)(S) Regs
If you and your partner are under pension age (or sometimes if one of you is under pension age) and you are paid an adoption allowance (before the adoption order is granted), any amount of this that you spend on the child is disregarded in full. If you keep any for your own use, it is taken into account as income for HB/CTR.3HB Reg 42(6)(c) HB Regs
CTR Reg 41(3)(c) CTR(S) Regs
If you are a tenant in the private 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’). You are allowed one room in the size criteria if you have a child (or children, if part of the same adoption arrangement) placed with you for adoption.4Regs 2, 13D(3A) and (12) and 21(3) HB Regs; regs 2, 13D(3A) and (12) and 21(3) 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 a room for a child placed with you for adoption. However, you are allowed one extra bedroom in the size criteria because a child (or children, if part of the same adoption arrangement) has been placed with you for adoption.5Regs 2, B13 and 21(3) HB Regs
If you are struggling to pay your rent, claim a discretionary housing payment (see here).
For information on what happens to benefits and tax credits once you have an adoption order for a child, 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 Reg 29 HB(SPC) Regs
CTR Reg 27(1) CTR(SPC)(S) Regs »
3     HB Reg 42(6)(c) HB Regs
CTR Reg 41(3)(c) CTR(S) Regs »
4     Regs 2, 13D(3A) and (12) and 21(3) HB Regs; regs 2, 13D(3A) and (12) and 21(3) HB(SPC) Regs »
5     Regs 2, B13 and 21(3) HB Regs »
Scottish child payment
When a child is placed with you for adoption, you can get Scottish child payment for the child if you satisfy the normal conditions of entitlement, including being responsible for the child (see here).