Children's Handbook Scotland 2020/21Chapter 9: Adoption3. Benefits and tax credits once you have adopted a child Means-tested benefits
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Means-tested benefits
Universal credit
Once you have adopted a child and s/he is no longer ‘looked after’ by the local authority, your universal credit (UC) includes the child element for her/him, providing you are ‘responsible’ for her/him. The ‘two-child limit’ (see here) does not apply if you adopt a child (agency adoption). This means that even if you already have two or more dependent children and you adopt a child born on or after 6 April 2017, you can get the child element in your UC for the child who has come to live with you, providing you satisfy the normal conditions of entitlement.1Sch 12 para 3 UC Regs You count as responsible for her/him if s/he normally lives with you.2Reg 4(2) UC Regs If you subsequently give birth to a child, the child placed for adoption is ‘disregarded’ when applying the two-child limit.3Reg 24A(1)(za) UC Regs The amount of housing costs element you get in your UC reflects the number of bedrooms you need, including for the child you have adopted. Your work allowance should reflect the fact you have a dependent child (see here). If you are working, you may be entitled to help with childcare costs (see here). 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.4Reg 89(1)(d) and (3) UC Regs and s19(6) WRA 2012 Any adoption allowance you receive does not count as income for UC.5Reg 66 UC Regs
 
1     Sch 12 para 3 UC Regs »
2     Reg 4(2) UC Regs »
3     Reg 24A(1)(za) UC Regs »
4     Reg 89(1)(d) and (3) UC Regs and s19(6) WRA 2012 »
5     Reg 66 UC Regs »
Income support
Note: if you are not already getting income support (IS), you will usually have to claim UC instead.
Once you have adopted a child, s/he counts as part of your household for IS purposes, provided you are treated as responsible for her/him. You are responsible for the child if:1Reg 15 IS Regs
    •you get child benefit for her/him; or
    •no one gets child benefit for her/him and s/he usually lives with you, or you are the only person who has claimed child benefit for her/him.
If you have adopted a child aged under five and you do not have a partner, you count as a lone parent for IS purposes. This means you may be able to get IS, provided you satisfy the other rules (see here).
If you are not getting any amount in your IS for a child and you are claiming child tax credit (CTC), any adoption allowance paid for a child you have adopted is disregarded for IS.2Sch 9 para 25(1)(a) IS Regs
If you are still claiming amounts for a child in your IS (see here) and you are receiving an adoption allowance, you may be better off claiming UC.3If you still receive IS amounts for children, adoption allowance counts as income up to the amount of the child’s personal allowance. Sch 9 para 25 IS Regs, as saved by SS(WTCCTC)(CA) Regs. Seek advice if you are in this situation.
 
1     Reg 15 IS Regs »
2     Sch 9 para 25(1)(a) IS Regs »
3     If you still receive IS amounts for children, adoption allowance counts as income up to the amount of the child’s personal allowance. Sch 9 para 25 IS Regs, as saved by SS(WTCCTC)(CA) Regs. »
Employment and support allowance
If you are getting income-related employment and support allowance (ESA) when you adopt a child, your income-related ESA may not be affected, although if you claim UC, your income-related ESA will stop.
Any adoption allowance paid for a child you have adopted is disregarded for income-related ESA.1Sch 8 para 26(1)(a) ESA Regs
Contributory ESA is not means-tested and, therefore, is not affected by any adoption allowance you receive.
 
1     Sch 8 para 26(1)(a) ESA Regs »
Jobseeker’s allowance
Note: if you are not already getting income-based jobseeker’s allowance (JSA), you are likely to have to claim UC instead.
Once you have adopted a child, the child counts as part of your household for JSA purposes, provided you are treated as responsible for her/him. You are responsible for the child if:1Reg 77 JSA Regs
    •you get child benefit for her/him; or
    •no one gets child benefit for her/him and s/he usually lives with you, or you are the only person who has claimed child benefit for her/him.
If you are not getting any amount in your income-based JSA for a child and you are claiming CTC, any adoption allowance paid for a child you have adopted is disregarded for JSA.2Sch 7 para 26(1)(a) JSA Regs
If you are still claiming amounts for a child in your income-based JSA (see here) and you are receiving an adoption allowance, you may be better off claiming UC instead.3An adoption allowance is taken into account in full as income up to the level of the child’s personal allowance. Sch 7 para 26 JSA Regs, as saved by SS(WTCCTC)(CA) Regs. If you are in this situation, seek advice.
Contribution-based JSA is not means tested and, therefore, is not affected by any adoption allowance you receive.
 
1     Reg 77 JSA Regs »
2     Sch 7 para 26(1)(a) JSA Regs »
3     An adoption allowance is taken into account in full as income up to the level of the child’s personal allowance. Sch 7 para 26 JSA Regs, as saved by SS(WTCCTC)(CA) Regs. »
Pension credit
You can get pension credit (PC) if you satisfy the rules set out on here. 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 CTC). Once you have adopted a child and s/he is no longer ‘looked after’ by the local authority, you can get the additional amount (see here) providing the child is normally living with you and you are not getting CTC for her/him.1Sch 2A para 3 SPC Regs If you are paid an adoption allowance, it is disregarded as income for PC purposes.2s15 SPCA 2002
 
1     Sch 2A para 3 SPC Regs »
2     s15 SPCA 2002 »
Housing benefit and council tax reduction
Note: if you are not already on housing benefit (HB), you are likely to have to claim UC instead.
Once you have adopted a child, s/he counts as part of your household for HB/council tax reduction (CTR) purposes, provided you are treated as responsible for her/him. You are responsible for the child if s/he normally lives with you. If there is any doubt, s/he is treated as living with you if:1HB Reg 20 HB Regs; reg 20 HB(SPC) Regs
CTR Reg 10 CTR(S) Regs; reg 10 CTR(SPC)(S) Regs
    •you get child benefit for her/him; or
    •no one gets child benefit but you have claimed it; or
    •no one has claimed child benefit, or more than one person has claimed it, but you appear to have most responsibility.
Adopting a child can change the amount of HB/CTR you get. The reasons why HB/CTR entitlement might change include the following.
    •Being responsible for a child increases your applicable amount (see here). This is the figure used to calculate how much HB/CTR you get.
    •If your HB is calculated on the basis of a ‘local housing allowance’ (this only affects tenants in the private rented sector), the local housing allowance that applies to you might change. See here for more information.
    •You may have childcare costs, which can be allowed for in the HB/CTR calculation.
    •If you are under pension age and live in the social rented sector, your HB may be reduced because you are considered to be under-occupying your accommodation (see here). This may change when you adopt a child.
Any adoption allowance you are paid is disregarded in full for HB and CTR.2HB Sch 5 para 25(1)(a) HB Regs; reg 29 HB(SPC) Regs
CTR Sch 4 para 29(1)(a) CTR(S) Regs; reg 27(1) CTR(SPC)(S) Regs
 
1     HB Reg 20 HB Regs; reg 20 HB(SPC) Regs
CTR Reg 10 CTR(S) Regs; reg 10 CTR(SPC)(S) Regs »
2     HB Sch 5 para 25(1)(a) HB Regs; reg 29 HB(SPC) Regs
CTR Sch 4 para 29(1)(a) CTR(S) Regs; reg 27(1) CTR(SPC)(S) Regs »
Scottish child payment
If you adopt a child, you can get Scottish child payment for the child if you satisfy the conditions of entitlement (see here).