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Chapter 9: Adoption
Benefit issues can arise when a child goes to live with adoptive parents or prospective adoptive parents. The effect on benefits and tax credits can depend on whether the child has been placed with you before being adopted by you (often referred to as being ‘placed for adoption’) or whether you have formally adopted the child (an adoption order has been granted in your favour by the court). This chapter explains both situations, and also explains how adoption allowances affect benefits and tax credits.
Definitions
‘Agency adoptions’ are cases in which adoption agencies (local authorities and voluntary agencies) formally place children for adoption under adoption law. Most of the information in this chapter only applies to agency adoptions and adopters.
Any other adoptions are ‘non-agency adoptions’. These may be adoptions by relatives, step-parents or other people, including inter-country adopters. Non-agency adoptions also include cases in which former foster carers adopt, but have not been formally approved as agency adopters.
An ‘adoption allowance’ is a payment that may be made by the local authority or adoption agency to adoptive parents or to someone with whom a child has been placed for adoption. Adoption allowances are not paid to every adoptive parent.1Regs 10-17 ASSA(S) Regs
 
1     Regs 10-17 ASSA(S) Regs »