Children's Handbook Scotland | 2023/24Chapter 4: Disabled children in care homes 1. Benefits and tax credits for children in care homes
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1. Benefits and tax credits for children in care homes
Child benefit and guardian’s allowance
If your child is in a care home, your child benefit – and guardian’s allowance if you get it – continues unaffected for 12 consecutive weeks.1s143(3) SSCBA 1992; regs 9 and 10(1) CB Regs
 When counting the 12 weeks, two or more periods in a care home which are separated by 28 days or less count as the same period.2Reg 10(2) CB Regs See here for how this rule works. After 12 weeks, your child benefit (and guardian’s allowance) continues, provided you spend money on your child’s behalf – eg, on clothing, snacks, toys, entertainment or on fares to visit them.3s143(4) SSCBA 1992 The amount of money you must spend is not stipulated. If you do not spend any money on your child’s behalf, your child benefit stops after your child has spent 20 weeks in a care home.4s143(2) SSCBA 1992, 12 weeks’ ‘care home’ absence plus eight weeks’ ‘normal’ absence
Means-tested benefits
Universal credit
If your child counts as looked after
If your child is in a care home and counts as ‘looked after’ by the local authority, they are no longer included in your universal credit (UC) claim, unless it is a ‘planned short break’ (respite).1Regs 4 and 4A(1)(a) UC Regs
This means that any child element you receive, including the disabled child element, 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, providing the child was included in the housing costs element calculation before going into a care home.3Sch 4 Part 3 para 11(2)(a) UC Regs If your UC includes the carer element, this stops when you no longer have ‘regular and substantial’ caring responsibilities for your child (see here), including if their child disability payment (CDP) care component or or adult disability payment (ADP) or personal independence payment (PIP) daily living component has stopped being paid.4Regs 29 and 30 UC Regs If the child element has stopped and you have no other dependent children, you will not get a work allowance (see here) unless you or your partner have limited capability for work.5Reg 22 UC Regs If you receive help with childcare costs for the child in your UC, this will stop.6Reg 33 UC Regs The work-related requirements which apply to you may also change (see here).
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 CDP, ADP or PIP, this exemption ends if the child no longer counts as part of your household.7Regs 79 and 83 UC Regs
If your child does not count as looked after
If your child does not count as ‘looked after’ by the local authority, they should still be included in your UC claim if their absence from home is temporary. However, they are no longer included in the claim if the stay away from home is expected to last for more than six months, or has lasted for more than six months.8Reg 4(7) UC Regs There is no rule ‘linking’ two or more periods of absence and therefore, arguably, even a brief stay at home followed by a return to a care home could start a new temporary period of absence. While the child is still included in your UC claim, you continue to get the child element and any disabled child element, even if CDP care component or ADP or PIP daily living component has stopped being paid (see here).9Reg 24(2) UC Regs Your work allowance (see here) is calculated taking into account that you have a dependent child.10Reg 22 UC Regs If your UC includes the carer element, this stops when you no longer have regular and substantial caring responsibilities for your child (see here), including if your child’s CDP care component or ADP or PIP daily living component has stopped being paid.11Regs 29 and 30 UC Regs If you receive help with childcare costs in your UC, this may change if you are no longer paying for childcare because your child is in a care home.
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 CDP, ADP or PIP, this exemption ends if the child no longer counts as part of your household (either because they count as ‘looked after’, see above, or because they have been away for more than six months).12Regs 79 and 83 UC Regs
Income support and income-based jobseeker’s allowance
During the first 12 weeks of a temporary absence, your child is still treated as part of your household for income support (IS) and income-based jobseeker’s allowance (JSA).1IS Reg 16(1) and (5)(b) IS Regs
JSA Reg 78(1) and 5(c) JSA Regs
 After 12 weeks’ absence, they are still treated as part of your household provided you are still in ‘regular contact’ with them.2IS Reg 16(5)(b) IS Regs
JSA Reg 78(5)(c) JSA Regs
 Regular contact is not defined. DWP guidance says that regular contact includes visits, letters and telephone calls that take place regularly or frequently, and that weekly or monthly visits are considered regular contact.3para 22074 DMG The DWP usually continues to treat the child as part of your household for the first year of absence, provided child benefit remains in payment for them.4para 22075 DMG After 52 weeks in a care home, a child is usually no longer treated as being part of your household, but there are exceptions (see below).
How your IS/income-based JSA is affected depends on whether or not you still get amounts in your benefit for your child (see below).
If you do not get amounts for your child
Most claimants do not get amounts in their IS/income-based JSA for their child(ren). In this situation, the amount of benefit you get should be unaffected by your child being in a care home, unless you stop being entitled to carer’s allowance (CA) or carer support payment (CSP) for them or they no longer count as part of your household (see here). If you stop being entitled to CA/CSP for the child, entitlement to the carer premium stops eight weeks after this date (see here).5IS Sch 2 para 14ZA(3) IS Regs
6JSA Sch 1 para 17(3) JSA Regs
 If claiming CA/CSP was the only basis of your IS claim, from eight weeks after your CA/CSP ends you are no longer able to claim IS on that basis.7Sch 1B para 5 IS Regs If the child no longer counts as part of your household, your benefit may be affected. For example, if you no longer count as caring for a child aged under five, you cannot claim IS as a lone parent.
If you still get amounts for your child
Your IS/income-based JSA might still include amounts for your child (child allowances and premiums). This will only be the case if you have been claiming IS/income-based JSA including amounts for a child since before 6 April 2004 and have not claimed child tax credit (CTC). This is now extremely unusual. See here for more details.
In most cases, providing your child’s stay in a care home is temporary, they continue to be treated as part of your household for IS/income-based JSA, and you continue to get a child personal allowance and family premium in your applicable amount for up to 52 weeks (sometimes for longer - see here).
However, the amount of IS/income-based JSA may change during the 52-week period because of the impact on premiums (part of your ‘applicable amount’ – see here).
    •The carer premium stops eight weeks after your CA/CSP stops (see here).8IS Sch 2 para 14ZA(3) IS Regs
    JSA Sch 1 para 17(3) JSA Regs
    •The disabled child premium stops when your child’s CDP care component or ADP or PIP daily living component stops (see here), unless there is another basis for getting it – ie, your child is still getting CDP mobility component, ADP or PIP mobility component or is severely sight impaired or blind.9IS Sch 2 para 14 IS Regs, pre-amendment by SS(WTCCTC)(CA) Regs
    JSA Sch 1 para 16 JSA Regs, pre-amendment by SS(WTCCTC)(CA) Regs
    •The enhanced disability premium stops when your child’s CDP care component or ADP or PIP daily living component stops (see here).10IS Sch 2 para 13A IS Regs, pre-amendment by SS(WTCCTC)(CA) Regs
    JSA Sch 1 para 15A JSA Regs, pre-amendment by SS(WTCCTC)(CA) Regs
When a child stops being treated as part of your household
If the stay in a care home is expected to last for more than 52 weeks, or if it has lasted for more than 52 weeks, the child is no longer treated as part of your household for IS/income-based JSA purposes.11IS Reg 16(2) IS Regs
JSA Reg 78(2) JSA Regs
 This means that if you have still been getting amounts for your child in your IS/income-based JSA, these will stop. The exception to this rule is if:12IS Reg 16(2) IS Regs
JSA Reg 78(2) JSA Regs
    •there are exceptional circumstances; and
    •the absence is unlikely to be substantially more than 52 weeks.
Note: when a place in a care home has been arranged by the local authority and the child is away from home for more than 24 hours, technically the child is ‘looked after’ by the local authority.13s17(6) and 25(8) C(S)A 1995 Applied strictly, the rules mean that the child should not be treated as part of your household for IS/income-based JSA after they have been in a care home for 24 hours.14IS Reg 16(5)(c) IS Regs
JSA Reg 78(4)(f) JSA Regs
In practice, however, it seems that the DWP applies the rules described above.
Income-related employment and support allowance
There are no amounts in employment and support allowance (ESA) for dependent children and therefore your ESA is not normally affected if your child goes into a care home. The exception is if you are entitled to CA/CSP and this stops (see here). The carer premium (part of your income-related ESA applicable amount) stops eight weeks after your entitlement to CA/CSP stops.1Sch 4 para 8(2) ESA Regs
Pension credit
If you are entitled to CA/CSP and this stops, the carer addition (part of your pension credit (PC)) stops eight weeks after your entitlement to CA stops (see here).1Sch 1 para 4(3) SPC Regs Some 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 getting CTC). If you get a PC additional amount for a child and they go into a care home, and the child does not count as ‘looked after’ by the local authority, the additional amount continues during a temporary period in a care home which is unlikely to last for more than 52 weeks or, in exceptional circumstances, unlikely to last for substantially more than 52 weeks.2Sch IIA para 6 SPC Regs The extra amount that you may get if your child has a disability (see here) continues during a temporary absence even if your child’s CDP, ADP or PIP has stopped being paid (see here).3Sch IIA para 9 SPC Regs If your child is in a care home and counts as looked after by the local authority, you no longer get the PC additional amount, unless it is a ‘planned short break’ (respite).4Sch IIA para 4 SPC Regs
Housing benefit and council tax reduction
Housing benefit (HB) and council tax reduction (CTR) may be affected in several ways if your child is in a care home. How they are affected can depend on whether your child counts as ‘looked after’ by the local authority.1As defined in s17(6) C(S)A 1995 Ask the social work department if you are not sure whether your child counts as ‘looked after’.
If your child counts as looked after
A child who is in a care home for more than 24 hours, arranged by the local authority, is technically a ‘looked-after’ child.2ss17(6) and 25(8) C(S)A 1995; J McRae, Children Looked After by Local Authorities: the legal framework, Social Work Inspection Agency, 2006, p69 If they are in the care home for less than a week, or if they come home for at least part of every week, your HB (and CTR if you are over pension age) is not affected, provided the local authority considers it reasonable to assess benefit as though the child were at home.3HB Reg 21(5) HB Regs; reg 21(5) HB(SPC) Regs
CTR Reg 11(4) CTR(SPC)(S) Regs
 A longer stay, however, may affect your benefit. Your entitlement to the personal allowance and any premiums for the child (including family premium if they are your only dependent child) may stop as soon as they go into the care home.4HB Reg 21(4)(a) HB Regs; reg 21(4)(a) HB(SPC) Regs
CTR Reg 11(3)(a) CTR(SPC)(S) Regs
 If you are under pension age, your CTR is likely to be affected in this way as soon as your child goes into a care home, unless it is just for a planned short break (respite).5Reg 7(8) CTR(s) Regs Your carer premium stops eight weeks after your CA/CSP stops.
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.6Regs 13D and 21(1) and (2) HB Regs; regs 13D and 21(1) and (2) HB(SPC) 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).7Reg B13 HB Regs It may be possible to argue that, even though the child is not part of your ‘household’ for HB, they should still count as an ‘occupier’ and they should still be included in the size criteria – eg, if they are not likely to be away indefinitely.8Regs B13 and 13D HB Regs and reg 13D(12) HB(SPC) Regs define ‘occupier’ as a person whom the local authority is satisfied occupies the claimant’s dwelling as their home Seek advice if you are in this situation.
If your HB is reduced, you can ask for a discretionary housing payment (see here) to make up some or all of the difference. Because these are discretionary, it is important to say why you need financial assistance. As well as explaining how the reduction of benefit will affect you financially, you could explain that your child is in the ‘looked after’ system only as a consequence of them having to go into a care home as a result of disability, and that the rules were never intended to reduce benefit for disabled children in these circumstances.
Note: if the only reason you are exempt from the benefit cap (see here) is because the child for whom you are responsible is entitled to CDP, ADP or PIP, this exemption ends if the child no longer counts as part of your household.9Regs 75A and 75F HB Regs
If your child does not count as looked after
If your child does not count as a ‘looked-after’ child (eg, the care is not arranged through the local authority or the local authority does not treat them as such for HB/CTR purposes), provided their absence is temporary, they continue to be treated as part of your household for HB/CTR.10HB Reg 21(1) and (2) HB Regs; reg 21 (1) and (2) HB(SPC) Regs
CTR Reg 7(9) CTR(S) Regs; reg 11(1) CTR(SPC)(S) Regs
 For HB, ‘temporary’ means that the absence is unlikely to exceed 52 weeks or, in exceptional circumstances (see below), unlikely to substantially exceed 52 weeks. For CTR, if you are under pension age, ‘temporary’ means the absence has not exceeded, or is not expected to exceed, six months. If you have reached pension age, there is no specific definition of ‘temporary’ for CTR.
However, the amount of HB/CTR may change during the temporary absence because of the impact on premiums (part of your ’applicable amount’ – see here).
    •The carer premium stops eight weeks after your CA/CSP stops.11HB Sch 3 para 17(2) HB Regs; Sch 3 para 9(2) HB(SPC) Regs
    •12CTR Sch1 para 5(6) CTR(S) Regs; Sch 1 para 10(2) CTR(SPC)(S) Regs
    •The disabled child premium stops when the child’s CDP care component or ADP or PIP daily living component stops, unless there is another basis for getting it – ie, your child is still getting CDP mobility component, ADP or PIP mobility component or is severely sight impaired or blind.13HB Sch 3 para 16 HB Regs; Sch 3 para 8 HB(SPC) Regs
    CTR Sch 1 para 3 CTR(S) Regs; Sch 1 para 9 CTR(SPC)(S) Regs
    •The enhanced disability premium (child) stops when the child’s CDP care component or ADP or PIP daily living component stops.14HB Sch 3 para 15 HB Regs; Sch 3 para 7 HB (SPC) Regs
    CTR Sch 1 para 14 CTR(S) Regs; Sch 1 para 8 CTR(SPC)(S) Regs
If the absence is likely to last for more than 52 weeks, or if it has lasted for more than 52 weeks, the child is usually no longer treated as part of your household for HB. This means that the amounts in your HB applicable amount for the child will stop. The exception to this rule is if:15Reg 21(2)(b) HB Regs; reg 21(2)(b) HB(SPC) Regs
    •there are exceptional circumstances and you have no control over the length of their absence; and
    •the absence is unlikely to be substantially more than 52 weeks.
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 impact on 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.16Reg 13D HB Regs; reg 13D HB(SPC) 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).17Reg B13 HB Regs It may be possible to argue that, even though the child is not part of your ‘household’ for HB/CTR, they should still count as an ‘occupier’ and they should still be included in the size criteria – eg, if they are not likely to be away indefinitely.18Regs B13(5), 13D(12) HB Regs and reg 13D(12) HB(SPC) Regs define ‘occupier’ as a person whom the relevant authority is satisfied occupies the claimant’s dwelling as their home Seek further advice if you are in this situation and look at claiming a discretionary housing payment (see here).
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 CDP, ADP or PIP, this exemption ends if the child no longer counts as part of your household – eg, because they have been absent for more than 52 weeks.19Regs 75A and 75F HB Regs
Scottish child payment
Scottish child payment continues while the child is in a care home, providing you continue to satisfy the conditions of entitlement (see here).
Non-means-tested benefits
Disability benefits
If your child is in a care home and the local authority is paying some or all of the costs, the care component of CDP or daily living component of ADP or PIP for the child stops after four weeks.1Regs 9 and 10 SS(DLA) Regs; regs 28 and 30 SS(PIP) Regs; reg 17 DACYP(S) Regs; reg 27 DAWAP(S) Regs The mobility component of CDP, ADP or PIP is not affected and continues to be paid. If, instead, the local authority places the child with a family (eg, for a period of respite), both components of CDP, ADP or PIP continue to be paid.2Reg 9(4) and (5) SS(DLA) Regs; reg 28(3) and (4) SS(PIP) Regs; reg 17(5)(a) DACYP(S) Regs; reg 27(5)DAWAP(S) Regs
Linking rules
When counting the four weeks, two or more periods in a care home which are separated by 28 days or less count as the same period.3Reg 10(5) SS(DLA) Regs; reg 32(4) SS(PIP) Regs; reg 17(3) DACYP(S) Regs; reg 27(3) DAWAP(S) Regs See here for more details of how the linking rules work and for details of how days in a care home are counted.
Carer’s allowance and carer support payment
If you are getting CA or CSP for caring for your child, there are two main reasons why your entitlement may be affected if they go into a care home.
    •You cannot get CA/CSP unless the person for whom you care is getting CDP care component at the middle or highest rate or ADP or PIP daily living component. If your child has been in a care home for more than four weeks, the care component/daily living component stops. This means your CA/CSP stops.
    •To qualify for CA/CSP, you must be caring for the disabled person for at least 35 hours a week. If your child is in a care home, you are unlikely to satisfy this rule. However, you can have some time off from caring and still be entitled to CA/CSP.
Time off from caring
You can still be entitled to CA/CSP during temporary breaks from caring. You can have a break from caring of up to four weeks in any 26-week period (or a break of up to 12 weeks if either you or the person for whom you care is having treatment in a hospital for at least eight of the 12 weeks1CA Reg 4(2) SS(ICA) Regs
CSP Reg 40 CA(CSP)(S) Regs). However, if the person you care for has stopped getting CDP care component or ADP or PIP daily living component, you cannot continue to get CA.
Arranging care breaks
A ‘week off’ caring is a week in which you spend less than 35 hours caring for the disabled person. A ‘week’ for CA/CSP runs from Sunday to Saturday.2CA s122 SSCBA 1992
CSP Reg 2 CA(CSP)(S) Regs This means that, if you can arrange a care home for your child from midweek to midweek (eg, for respite), you may still be caring for them for at least 35 hours in the week they go into the care home and in the week they come home. These weeks do not count as ‘weeks off’ caring.
Time spent preparing for your child’s time at home, and cleaning and washing after they have gone, can count as time spent caring for them. For example, any shopping or cooking that relates solely to the visit and any cleaning up afterwards can count as caring.3CG/006/1990; para 60041 DMG
Carer element, carer premium and carer addition
If you are on UC, the carer element stops when you no longer have ‘regular and substantial’ caring responsibilities for your child (see here), including if your child’s CDP care component or ADP or PIP daily living component has stopped being paid.4Regs 29 and 30 UC Regs
If your entitlement to CA/CSP stops, the carer premium or carer addition in your IS, income-based JSA, income-related ESA, PC, HB or CTR stops eight weeks after your entitlement to CA/CSP stops.5IS Sch 2 para 14ZA IS Regs
JSA Sch 1 para 17(3) JSA Regs
ESA Sch 4 para 8 ESA Regs
PC Sch 1 para 4 SPC Regs
HB Sch 3 para 17 HB Regs; Sch 3 para 9 HB(SPC) Regs
CTR Sch 1 para 5(6) CTR(S) Regs; Sch 1 para 10 CTR(SPC)(S) Regs
If you were entitled to IS only because you were getting CA/CSP, eight weeks after CA/CSP stops you can no longer claim IS on that basis.
See Chapter 1 for more information about the carer element, carer premium and carer addition.
Tax credits
If the care home placement has been arranged solely because of your child’s disability or health, you continue to be responsible for the child for tax credit purposes if you were responsible for them before they went into the care home.1Reg 3 r4.2 CTC Regs This means that you should receive CTC indefinitely for your child even though they are in a care home (because of their disability). Your child also continues to count as a dependent child for working tax credit purposes. However, the amount of tax credits you get might change.
Amount of tax credits
If your child’s CDP care component or ADP or PIP daily living component has stopped (see here), this affects the disabled child and severely disabled child elements as follows.1Reg 8 CTC Regs
    •The disabled child element stops being included in your CTC calculation from the date the CDP care component or ADP or PIP daily living component stops, unless there is another basis for getting it – ie, your child is still getting CDP, ADP or PIP mobility component, or is severely sight impaired or blind.
    •The severely disabled child element stops being included in your CTC calculation from the date the CDP care component or ADP or PIP daily living component stops.
Make sure you report changes to HMRC to avoid underpayments and overpayments.
Help visiting your child
If you are on a low income, you may be able to get help from the Scottish Welfare Fund (see here) for the cost of visiting your child in a care home.1SWFG para 6.7
If you are eligible, it may be possible to get a community care grant or crisis grant to help with travel expenses to visit your child in a care home. The amount awarded will normally cover the cost of standard public transport. If public transport is not available or suitable, the cost of petrol or a taxi may be given. A travel voucher may be issued.
If you are on UC, IS, income-based JSA, income-related ESA or PC, it should be accepted that you are on a low income, but you do not need to be on one of these benefits to get help from the Scottish Welfare Fund.