Children's Handbook Scotland | 2024/25Chapter 6: Children who are 'looked after and accommodated' 1. Benefits and tax credits for children who are 'looked after and accommodated'
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1. Benefits and tax credits for children who are ‘looked after and accommodated’
Child benefit
Your entitlement to child benefit stops if your child has been looked after and accommodated for at least one day a week for eight consecutive weeks.1s147(2) and Sch 9 para 1 SSCBA 1992; regs 16(1)(a) and 18 CB Regs A ‘day’ for this purpose means midnight to midnight2R(F) 3/85 and a ‘week’ means a period of seven days starting on a Monday.3s147(1) SSCBA 1992
You have a duty to notify the Child Benefit Office of any changes in your circumstances, including if your child has been looked after and accommodated for eight weeks. Contact the Child Benefit Office (see Appendix 1) as soon as you know your child is likely to be looked after and accommodated for eight weeks or more. HMRC provides a form (CH193) for local authorities to use to notify the Child Benefit Office if a child has started to be looked after by them. This can be completed online at gov.uk/government/publications/child-benefit-local-authority-or-care-trust-notification-ch193. You should not rely on the local authority advising the Child Benefit Office as it is still your responsibility and, to avoid overpayment, make sure you also tell the Child Benefit Office about any change.
Do not assume that by telling one section of the DWP or HMRC that all the other sections will get the same information. You need to tell the Child Benefit Office even if you have already told the Tax Credit Office, DWP, Social Security Scotland (SSS) or local authority.
Means-tested benefits
Universal credit
If your child is looked after and accommodated, they are no longer included in your universal credit (UC) claim, unless it is a ‘planned short break’ (respite).1Reg 4 and 4A UC Regs This means that any child element, including any disabled child element, you receive 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.3Sch 4 para 11(2)(a) UC Regs. The rules say that the absence must be temporary, but it is unclear whether the DWP would question whether the child is temporarily or permanently absent. If your child is looked after and accommodated, they do not count as a dependent child for the purpose of calculating your work allowance (see here). If you have been getting help with childcare costs for the child, this stops. The changes to your UC take effect from the start of the assessment period in which they happen. The ‘assessment period’ is a period of one month.
Example
Faye claimed UC on 15 May 2024. Her first assessment period for UC is 15 May 2024 to 14 June 2024 and every assessment period after that follows the same dates (15th of the month to 14th of the following month). Her child becomes looked after and accommodated on 30 September 2024. All the changes that happen as a result of that take effect from the start of the assessment period in which that date falls – ie, 15 September 2024 to 14 October 2024. For example, the child element stops being included in her UC from 15 September 2024.
Your ‘claimant commitment’ (see here), which sets out what you have to do to keep receiving your full UC, might change.
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 child disability payment (CDP), adult disability payment (ADP) or personal independence payment (PIP), their exemption ends if they no longer count as part of your household.4Regs 79 and 83 UC Regs
Income support and jobseeker’s allowance
If, as a result of your child being looked after and accommodated, you are no longer caring for a child aged under five, you are not able to claim IS as a lone parent. This is because the child no longer counts as a member of your household.1Reg 16(5)(c) and Sch 1B para 1 IS Regs This takes effect as soon as your child is looked after and accommodated.
If you are getting carer’s allowance (CA) or carer support payment (CSP) for your disabled child and the child is looked after and accommodated, any carer premium in your IS/income-based JSA may be affected or the basis for your IS claim may be affected (see here).
Tell the DWP immediately if your child is looked after and accommodated.
Income-related employment and support allowance
Income-related employment and support allowance (ESA) does not include any amounts for children and is not normally affected when your child is looked after and accommodated. If, however, you are getting CA/CSP for a disabled child and the child is looked after and accommodated, any carer premium in your income-related ESA may be affected (see here).
Pension credit
If you are entitled to CA/CSP and this stops, the carer addition (part of pension credit (PC)) may be affected (see here). Some PC claimants who are responsible for a child/qualifying young person get an additional amount for them in their PC. If you get a PC additional amount for a child and they become looked after and accommodated, you will no longer get the PC additional amount unless it is a ‘planned short break’ (respite).1Sch 2A para 4 SPC Regs
Housing benefit and council tax reduction
If your child becomes looked after and accommodated, your applicable amount (the figure used to calculate how much housing benefit (HB)/council tax reduction (CTR) you get) no longer includes amounts (personal allowance and premiums) for the child.1HB Reg 21(4)(a) HB Regs; reg 21(4)(a) HB(SPC) Regs
CTR Reg 7(8) CTR(S) Regs; reg 11(3)(a) CTR(SPC)(S) Regs See Chapter 1 for more about how HB/CTR is calculated. Your entitlement to the allowance and premiums stops as soon as your child is looked after and accommodated.
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.2Reg 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).3Reg 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 still be included in the size criteria – eg, if they are not likely to be away indefinitely.4Reg B13(5) 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.
Your income may reduce (eg, because CTC has stopped) and this also affects the amount of HB/CTR to which you are entitled, unless you are already getting the maximum amount of HB/CTR.
If you are struggling to pay your rent because of changes to your HB entitlement, apply for a discretionary housing payment (see here).
Tell the HB/CTR office immediately if your child is looked after and accommodated. Also inform the local authority when your CTC stops. This is because CTC counts as income for HB/CTR, so if you are no longer getting it, you may be entitled to more HB/CTR.
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 they no longer count as part of your household.5Regs 75A and 75F HB Regs
Scottish child payment
If your child becomes looked after and accommodated, Scottish child payment stops if you no longer count as responsible for the child (see here). This usually happens when you stop being entitled to child benefit (see here).
Non-means-tested benefits
Disability benefits
If your child is entitled to CDP, ADP or PIP, it may be affected if they are looked after and accommodated. The rules are different depending on whether they are staying with foster carers or in residential accommodation – eg, a residential unit. If your child’s CDP care component/ADP or PIP daily living component stops, and/or you are no longer caring for your child, any CA/CSP you get may be affected (see here).
 
Foster care
CDP (both care and mobility components)/ADP and PIP (both daily living and mobility components) can continue to be paid while your child is living with foster carers. However, the person to whom the benefit is paid may change because of rules about appointeeship.
A foster carer may be appointed by SSS to deal with your child’s CDP if there is no one who:1s85A SS(S) Act 2018
    •already has the authority to act on behalf of your child; and
    •lives with, and has responsibility for, your child; and
    •is willing to act on the child’s behalf.
When deciding whether to appoint a foster carer, SSS must, if practicable, take account of the child’s views and also the views of anyone who has parental rights or responsibilities for the child and anyone else who appears to have an interest in the child’s welfare or financial affairs (eg, the child’s social worker).2s85A(5C) SS(S) Act 2018
 
Residential accommodation
After 28 days in residential accommodation, the care component of CDP or the daily living component of ADP/PIP stops.3Regs 28 and 30 SS(PIP) Regs; reg 17 DACYP(S) Regs; reg 27 DAWAP(S) Regs The mobility component continues to be paid. Two or more periods in residential accommodation separated by 28 days or less are linked and count as the same period for this purpose.4Reg 32(4) SS(PIP) Regs; reg 17(3) DACYP(S) Regs; reg 27(3) DAWAP(S) Regs See here if the child spends time away from residential accommodation – eg, at home with you.
Example
Oliver is aged 12 and gets the CDP middle rate care component and lower rate mobility component. He becomes looked after and accommodated on 1 August and goes to stay in a residential unit on that date. On 21 August he goes to stay with his grandmother. At this point, he has been in the residential unit for 19 days (the day he went in and the day he left are not counted5Reg 19(1) DACYP(S) Regs ). This arrangement lasts until 15 September, when he returns to the residential unit. He has been at his grandmother’s for 26 days. The care component of CDP stops being payable on 25 September (assuming he remains in the residential unit until then) because he has been there for a total of 28 days. The two periods are linked because he was at his grandmother’s for only 26 days. CDP mobility component continues to be paid.
Tell SSS (or DWP for PIP) (see Appendix 1) immediately if your child is looked after and accommodated in residential accommodation. If your child is entitled to the mobility component of CDP, ADP or PIP (which continues to be paid), the person to whom this is paid may change because of the rules about appointees (these are the same as if your child goes to live with a foster carer - see here).
Carer’s allowance and carer support payment
Entitlement to CA/CSP stops if the care component of CDP or the daily living component of ADP/PIP stops because your child has been in residential accommodation for more than four weeks (see here).
In any event, and even if the care component/daily living component continues because your child is in foster care, you probably do not satisfy the rules for getting CA/CSP because you are not caring for the child for 35 hours or more a week. You can have a temporary break of up to four (or, in some circumstances, 12) weeks from caring and remain entitled to CA/CSP, provided the break is temporary (see here).1CA Reg 4(2) SS(ICA) Regs
CSP Reg 40 CA(CSP)(S) Regs This may allow you to keep your CA/CSP for four weeks, although it may be difficult to argue that the break is temporary, depending on the circumstances of your case.
If you are getting UC, the carer element stops if you no longer have ‘regular and substantial’ caring responsibilities for your child (see here).2Regs 29 and 30 UC Regs
If you are getting IS, income-based JSA, income-related ESA, PC or HB/CTR, the carer premium/carer addition (see Chapter 1) stops eight weeks after your entitlement to CA/CSP stops.3IS Sch 2 para 14ZA(3) IS Regs
JSA Sch 1 para 17(3) JSA Regs
ESA Sch 4 para 8(2) ESA Regs
PC Sch 1 para 4(3) SPC Regs
HB Sch 3 para 17(2) HB Regs; Sch 3 para 9(2) HB(SPC) Regs
CTR Sch 1 para 5(6) CTR(S) Regs; Sch 1 para 10(2) CTR(SPC)(S) Regs If you were getting IS only on the basis of getting CA/CSP, your IS will stop eight weeks after CA stops.
Tell the Carer’s Allowance Unit, or SSS for CSP (see Appendix 1), if your child is looked after and accommodated. Inform the office dealing with your UC, IS, JSA, ESA, PC or HB/CTR claim if your entitlement to CA/CSP stops.
Tax credits
Your tax credit entitlement for your child stops as soon as they become looked after and accommodated.1Reg 3 r4.1 Case A CTC Regs Your CTC may reduce or, if you no longer have any dependent children at home with you, stop altogether. If you are working and getting working tax credit, this might also be affected, either because having a dependent child is the sole basis of your entitlement or because you are getting help with childcare costs for the child.
Tell HMRC immediately, preferably in writing, if your child is looked after and accommodated to avoid being overpaid. Contact the Tax Credit Office to do this (see Appendix 1). If you do not tell HMRC within one month of the change, it can impose a penalty of up to £300 on you.2s32 TCA 2002
Other benefits
Health benefits
If your child is looked after and accommodated, you may sometimes lose your entitlement to health benefits. This is because you may lose entitlement to a ‘qualifying benefit’ like IS or CTC, or because you are no longer treated as having a dependent child. See here for who qualifies for health benefits. Check whether you still qualify even though your circumstances have changed – eg, you can get help with some costs on low income grounds.