Children's Handbook Scotland | 2023/24Chapter 9: Adoption 3. Benefits and tax credits once you have adopted a child
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3. Benefits and tax credits once you have adopted a child
This section describes what happens to benefits and tax credits once an adoption order has been granted in your favour by the court.
Child benefit
Once you have adopted a child, you can claim, or continue to claim, child benefit, provided you satisfy the normal rules set out here.
Any adoption allowance you receive does not affect child benefit.
Statutory adoption pay, statutory paternity pay and statutory shared parental pay
See here for when you can claim statutory adoption pay (SAP), statutory paternity pay (SPP) and statutory shared parental pay (SSPP).
Means-tested benefits
Universal credit
Once you have adopted a child, your universal credit (UC) includes the child element for them, providing you are ‘responsible’ for them.
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 them if they normally live 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 not be able to claim it because of the introduction of UC.
Once you have adopted a child, they count as part of your household for IS purposes, provided you are treated as responsible for them. You are responsible for the child if:1Reg 15 IS Regs
    •you get child benefit for them; or
    •no one gets child benefit for them and they usually live with you, or you are the only person who has claimed child benefit for them.
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 on this basis, provided you satisfy the other rules (see here).
Note: you cannot now make a new claim for IS because of the introduction of UC, so this rule can only help you stay on IS if you are already getting it.
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
 
1     Reg 15 IS Regs »
2     Sch 9 para 25(1)(a) IS 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 »
Income-related jobseeker’s allowance
Note: if you are not already getting income-based jobseeker’s allowance (JSA), you will not be able to claim it because of the introduction of UC.
Once you have adopted a child, the child counts as part of your household for JSA purposes, provided you are treated as responsible for them. You are responsible for the child if:1Reg 77 JSA Regs
    •you get child benefit for them; or
    •no one gets child benefit for them and they usually live with you, or you are the only person who has claimed child benefit for them.
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
 
1     Reg 77 JSA Regs »
2     Sch 7 para 26(1)(a) JSA 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 them in their PC (instead of CTC). Once you have adopted a child and they are 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 them.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 getting housing benefit (HB), you are likely to have to claim UC instead, unless you are over pension age or living in certain types of accommodation.
Once you have adopted a child, they count as part of your household for HB/council tax reduction (CTR) purposes, provided you are treated as responsible for them. You are responsible for the child if they normally live with you. If there is any doubt about who is responsible for a child, they are treated as living with you for HB and pension age CTR if:1HB Reg 20 HB Regs; reg 20 HB(SPC) Regs
CTR Reg 10 CTR(SPC)(S) Regs
    •you get child benefit for them; 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.
For working age CTR, the child normally lives with you if you have the ‘main responsibility’ for them.2Reg 7(4) CTR(S) Regs
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.3HB Sch 5 para 25(1)(a) HB Regs; reg 29 HB(SPC) Regs
CTR Reg 57 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(SPC)(S) Regs
 »
2     Reg 7(4) CTR(S) Regs »
3     HB Sch 5 para 25(1)(a) HB Regs; reg 29 HB(SPC) Regs
CTR Reg 57 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).
Non-means-tested benefits
Child disability payment
If the child you have adopted gets child disability payment (CDP), they keep getting it. Once you have adopted a child and have parental rights and responsibilities, you are responsible for your child’s CDP without having to be appointed by Social Security Scotland.1s85A SS(S)A 2018
 
1     s85A SS(S)A 2018 »
Carer’s allowance and carer support payment
If the child you adopt is getting the middle or highest rate care component of CDP or DLA, you may be able to claim carer’s allowance (CA) or carer support payment (CSP), provided you satisfy the normal rules (see here). You cannot get CA/CSP if you are ‘gainfully employed’ – ie, if you are earning more than £151 a week. Adoption allowance does not count as earnings for this purpose,1CA Regs 9 and 12 SSB(CE) Regs
CSP Sch 2 para 1 CA(CSP)(S) Regs although SAP, SPP and SSPP do count as earnings.2CA Reg 9(1)(j) SSB(CE) Regs
CSP Sch 2 para 8(1)(j) CA(CSP)(S) Regs
If you are entitled to CA/CSP and you also get UC, IS, income-based JSA, income-related ESA, PC or HB/CTR, you should get the carer element, carer premium or carer addition in your applicable amount.
 
1     CA Regs 9 and 12 SSB(CE) Regs
CSP Sch 2 para 1 CA(CSP)(S) Regs »
2     CA Reg 9(1)(j) SSB(CE) Regs
CSP Sch 2 para 8(1)(j) CA(CSP)(S) Regs »
Tax credits
Note: you cannot make a new claim for tax credits because of the introduction of UC. See here for more details. The information in this section applies to you if you are already getting tax credits.
Once you have adopted a child, you can count as responsible for them for tax credits purposes – ie, you can get tax credits in respect of them.
Child tax credit
You can get CTC for the child you have adopted, provided you satisfy the normal rules explained on here. 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 CTC for the child you have adopted, providing you satisfy the normal conditions of entitlement.1Reg 11 CTC Regs If you subsequently give birth to a child, the child placed for adoption is ‘disregarded’ when applying the two-child limit.2Reg 9 CTC Regs
 
1     Reg 11 CTC Regs »
2     Reg 9 CTC Regs »
Working tax credit
To get working tax credit (WTC) you, or your partner, must be in full-time paid work. If you are responsible for at least one dependent child (see here), full-time paid work means at least 16 hours a week if you are a single claimant and usually means 24 hours a week if you are a couple (see here).
If, as a result of adopting a child, you pay a childminder, nursery or other childcare provider, you may become entitled to an increased amount of WTC (see here).
You are treated as being in full-time paid work during any period when you are being paid SAP, SPP or SSPP and during any period when you are absent from work during adoption or paternity leave or statutory shared parental leave during which you could have received SSPP, provided you were in qualifying remunerative work before you went on adoption/paternity/shared parental leave,1Reg 5 WTC(EMR) Regs or would have counted as being in qualifying remunerative work if you had been responsible for a child.2Reg 5A WTC (EMR) Regs
Any adoption allowance you are paid is disregarded for tax credits.3Reg 19 Table 6 para 11(a) TC(DCI) Regs £100 a week of SAP/SPP/SSPP is disregarded for tax credits.4Reg 4(1)(h) TC(DCI) Regs
 
1     Reg 5 WTC(EMR) Regs »
2     Reg 5A WTC (EMR) Regs »
3     Reg 19 Table 6 para 11(a) TC(DCI) Regs »
4     Reg 4(1)(h) TC(DCI) Regs »
Other benefits
Best Start grant
You can qualify for a Best Start grant pregnancy and baby payment if you adopt a child aged under 12 months. You must claim before the child is one year old.1Sch 2 EYA(BSG)(S) Regs You cannot claim a pregnancy and baby payment if you already received the payment when the child was placed for adoption (see here).2Sch 2 para 1 EYA(BSG)(S) Regs The payment is £754.65, or usually £377.35 if you have another child under 16 in your household.3Sch 2 EYA(BSG)(S) Regs
If you adopt an older child, you may be entitled to an early learning payment or a school-age payment (see here). You can get a Best Start grant for the child even if someone else (eg, the birth mother) has already received a Best Start grant for the child.4Sch 2, 3 and 4 EYA(BSG)(S) Regs
 
1     Sch 2 EYA(BSG)(S) Regs »
2     Sch 2 para 1 EYA(BSG)(S) Regs »
3     Sch 2 EYA(BSG)(S) Regs »
4     Sch 2, 3 and 4 EYA(BSG)(S) Regs »
Health benefits
Adopting a child may mean you become entitled to health benefits. If you have adopted a child aged under three, you may be entitled to help under the Best Start food scheme. This is a prepaid card that can be used to buy healthy food such as fruit, vegetables, milk, eggs and pulses (see here).
Children are automatically entitled to free dental treatment and vouchers for glasses.