Children's Handbook Scotland 2025/26Chapter 7: Children living with kinship carers 4. Benefits if a child is looked after
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4. Benefits if a child is looked after
This section applies if you are a kinship carer and you are caring for a child who is looked after by the local authority. This will normally be because:1s17(6) C(S)A 1995
    •of a compulsory supervision order or interim compulsory supervision order under the Children’s Hearings (Scotland) Act 2011; or
    •the local authority has placed the child with you under section 25 of the Children (Scotland) Act 1995; or
    •there is a permanence order in respect of the child under Part II of the Adoption and Children (Scotland) Act 2007.
It can be important to know what type of payment the local authority is making (see here). Ask your local authority to provide details in writing of the type of payment, in particular what legal power it is using to make the payment.
 
1     s17(6) C(S)A 1995 »
Child benefit and guardian’s allowance
If you are caring for a looked-after child, you should be entitled to child benefit.1Reg 16(1) CB Regs The exception to this is if the local authority is making payments to you under regulation 33 of the Looked After Children (Scotland) Regulations 2009 (this may be referred to as a payment under section 110 of the Adoption and Children (Scotland) Act 2007) and this payment is for either accommodation or maintenance. In this situation, you are not entitled to child benefit.2Reg 16(3) CB Regs
To be entitled to guardian’s allowance, you must be entitled to, or treated as being entitled to, child benefit3ss77 and 122(5) SSCBA 1992 and satisfy the other conditions of entitlement for guardian’s allowance (see here).
 
1     Reg 16(1) CB Regs »
2     Reg 16(3) CB Regs »
3     ss77 and 122(5) SSCBA 1992 »
Means-tested benefits
Universal credit
If you are a kinship carer of a looked-after child, your universal credit (UC) does not include any child element, including the disabled child element, for the child unless you have legal parental responsibilities for them.1Regs 4 and 4A UC Regs Most kinship carers of looked-after children do not have legal parental rights and therefore do not get a child element for the children they care for.2If there is a permanence order in place in respect of the child, the child is looked after by the local authority but you may, as a kinship carer, have parental rights and responsibilities vested in you. In this situation, your UC may include the child element for the child. However, the UC rules appear to still prevent this because they exclude ‘foster carers’ from getting the child element and the definition of foster carer includes Scottish kinship carers of looked-after children (reg 2 UC Regs). It is unclear whether this is the DWP’s intention and the DWP appears to pay kinship carers the child element in this situation.
A two-child limit was introduced on 6 April 2017 (see here). There are some exemptions from this rule, including a child in kinship care where you have parental rights or responsibilities for them as a result of a permanence order or if you get guardian’s allowance in respect of the child. They continue to be exempt after their 16th birthday, providing you are still responsible for them.3Reg 24B(2A) and Sch 12 para 4(2) UC Regs
Note: the Scottish government intends to mitigate the two-child limit for anyone who is affected by it (with a ‘two-child limit payment’), starting from March 2026. See CPAG’s Welfare Rights Bulletin and cpag.org.uk for updates.
UC includes a housing costs element. If you live in rented accommodation, the amount is based on how many rooms you need (the size criteria). A looked after child in kinship care for whom you do not get a child element is not allocated a room in the size criteria. However, kinship carers of looked after children are allowed one extra bedroom in the size criteria.4Reg 2 and Sch 4 paras 9 and 12 UC Regs A looked after child in kinship care for whom you do not get a child element does not count as a dependent child for the purposes of the work allowance (see here) or the childcare costs element (see here).
If you are caring for a looked after child aged under one and you are single, or you are in a couple and are nominated as the main carer, you are not subject to any work-related requirements (see here).5Reg 89(1)(f) UC Regs If you are caring for a looked-after child aged between one and 16 and you are single, or you are in a couple and are nominated as the main carer, you are subject to the work-focused interview-only requirement (see here). This can extend beyond the child’s 16th birthday if they have care needs which would make it unreasonable for you to meet the work search or work availability requirements, even if these were limited.6Reg 91(2)(a) and (b) UC Regs
If you are in a couple and your partner is the main nominated carer, you can be subject to the work-focused interview-only requirement if you and your partner are caring for a child or qualifying young person who has care needs which would make it unreasonable for either of you to meet the work search or work availability requirements, even if these were limited.7Reg 91(2)(c) UC Regs
Local authority payments (kinship care allowance) are disregarded as income for UC.8Reg 66 UC Regs
 
1     Regs 4 and 4A UC Regs »
2     If there is a permanence order in place in respect of the child, the child is looked after by the local authority but you may, as a kinship carer, have parental rights and responsibilities vested in you. In this situation, your UC may include the child element for the child. However, the UC rules appear to still prevent this because they exclude ‘foster carers’ from getting the child element and the definition of foster carer includes Scottish kinship carers of looked-after children (reg 2 UC Regs). It is unclear whether this is the DWP’s intention and the DWP appears to pay kinship carers the child element in this situation. »
3     Reg 24B(2A) and Sch 12 para 4(2) UC Regs »
4     Reg 2 and Sch 4 paras 9 and 12 UC Regs »
5     Reg 89(1)(f) UC Regs »
6     Reg 91(2)(a) and (b) UC Regs »
7     Reg 91(2)(c) UC Regs »
8     Reg 66 UC Regs »
Income-related employment and support allowance
You can get income-related employment and support allowance (ESA) if you satisfy the rules in Chapter 1. There are no additional amounts in ESA for dependent children.
 
The effect of local authority payments
Local authority payments (kinship care allowance) are disregarded as income for income-related ESA.1Sch 8 paras 26(1)(b), 28 and 30(1)(c) ESA Regs; para 51255 DMG Vol 9 Ch 51
 
1     Sch 8 paras 26(1)(b), 28 and 30(1)(c) ESA Regs; para 51255 DMG Vol 9 Ch 51 »
Pension credit
You can get pension credit (PC) if you satisfy the rules on here. PC claimants who are responsible for a child or qualifying young person may get an additional amount for them in their PC. You will not get this additional amount for a looked-after child unless you have legal parental responsibilities for the child.1Sch 2A para 4(1) and (3)(b) SPC Regs Most kinship carers of a looked-after child do not have parental rights: the exception is if you have a permanence order when you may also have parental responsibility.
Local authority payments (kinship care allowance) are disregarded as income for PC.2Reg 15 SPC Regs
 
1     Sch 2A para 4(1) and (3)(b) SPC Regs »
2     Reg 15 SPC Regs »
Housing benefit
Note: if you are not already getting housing benefit (HB), you are very likely to have to claim UC instead, unless you and your partner, if you have one, are over pension age or you live in certain types of accommodation such as temporary homeless accommodation.
If you are a kinship carer of a looked-after child, they may not be treated as part of your household/occupying your home for HB purposes, even though they live with you.1Reg 21(3) HB Regs; reg 21(3)(a) HB(SPC) Regs. These regulations state that the child is treated as not being part of your household and not occupying your home where they are placed with you under a ‘relevant enactment’. Relevant enactment includes the Children (Scotland) Act 1995, the Adoption and Children (Scotland) Act 2007 and the Children’s Hearings (Scotland) Act 2011. This can affect your HB in a number of ways.
    •If the child is not part of your household, your applicable amount does not include amounts for the child. If you are on income-related ESA or the guarantee credit of PC, you are passported to the maximum amount of HB (see here). However, your HB may still be affected - see the next two bullet points.
    •If you live in private rented accommodation and your HB is calculated using the local housing allowance (see here), the size criteria used to work out your local housing allowance does not include the child(ren) you care for. However, you are allowed one extra room in the size criteria because you are a kinship carer of a looked-after child.2Reg 13D(3A)(b) HB Regs; reg 13D(3A)(b) HB(SPC) Regs
    •If you are under pension age and you live in the social rented sector, the child is not included in the size criteria and you may be treated as under-occupying your home. This may result in your being subject to an under-occupation penalty (bedroom tax). However, you are allowed one extra room in the size criteria because you are a kinship carer of a looked-after child.3Reg B13(6)(b) HB Regs
If you are affected by the bedroom tax, or struggling to pay your rent because of the HB rules, you should claim a discretionary housing payment (see here).
The effect of local authority payments
Local authority payments (kinship care allowance) are ignored as income for HB.4Sch 5 paras 25(1)(ba), 26(a)(ii) and (iii) and 28 HB Regs; reg 29(1) HB(SPC) Regs
 
1     Reg 21(3) HB Regs; reg 21(3)(a) HB(SPC) Regs. These regulations state that the child is treated as not being part of your household and not occupying your home where they are placed with you under a ‘relevant enactment’. Relevant enactment includes the Children (Scotland) Act 1995, the Adoption and Children (Scotland) Act 2007 and the Children’s Hearings (Scotland) Act 2011. »
2     Reg 13D(3A)(b) HB Regs; reg 13D(3A)(b) HB(SPC) Regs »
3     Reg B13(6)(b) HB Regs »
4     Sch 5 paras 25(1)(ba), 26(a)(ii) and (iii) and 28 HB Regs; reg 29(1) HB(SPC) Regs »
Scottish child payment
You can get Scottish child payment for a looked-after child if you satisfy the normal conditions of entitlement, including being responsible for the child (see here).
Non-means-tested benefits
Child disability payment and other disability benefits
The information on child disability payment (and adult disability payment, disability living allowance, Scottish adult disability living allowance, pension age disability payment and attendance allowance) on here applies equally to any kinship care arrangement.
Carer support payment
The information on carer support payment on here applies equally to any kinship care arrangement.
National insurance credits
You are entitled to be credited with class 3 national insurance (NI) contributions for any week in which you are a kinship carer of a looked-after child.1s23A(2) and (3)(b) SSCBA 1992; regs 4 and 9 SS(CCPC) Regs These credits can help you qualify for retirement pension and some other benefits. You must apply to HMRC to be credited with NI contributions.2Reg 9(a) SS(CCPC) Regs Complete Form CF411a (available at gov.uk/government/publications/national-insurance-credits-for-parents-and-carers-cf411a) after the end of the tax year and send it to HMRC with a letter of confirmation from the local authority.
 
1     s23A(2) and (3)(b) SSCBA 1992; regs 4 and 9 SS(CCPC) Regs »
2     Reg 9(a) SS(CCPC) Regs »
Other benefits
For Scottish Welfare Fund payments and Best Start grant, see here.