Children's Handbook Scotland 2025/26Chapter 8: Children living with foster carers 2. Benefits for foster carers
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2. Benefits for foster carers
Child benefit
If a child has been placed in foster care with you and the local authority or fostering agency is paying towards the child’s maintenance and/or accommodation (eg, a fostering allowance), you cannot get child benefit (or guardian’s allowance) for the child.1Sch 9 SSCBA 1992; regs 16 and 18 CB Regs
 
1     Sch 9 SSCBA 1992; regs 16 and 18 CB Regs »
Means-tested benefits
Universal credit
If you are on universal credit (UC), it does not include any child element, or disabled child element, for a child you are fostering.1Reg 4 and 4A UC Regs You do not get any help with childcare costs in your UC for a child you are fostering. The housing costs element for rent is limited depending on how many bedrooms you are deemed to need (called the size criteria). The size criteria does not include a child you are fostering. You are allowed one extra room in the size criteria, regardless of how many children you foster. This applies while you have a foster child or children living with you and also during a period of up to one year while you are an approved foster carer but do not have a child placed with you.2Sch 4 paras 8, 9, 10 and 12 UC Regs Any income from fostering that you receive does not count as income for UC.3Reg 66 UC Regs
If you are the responsible foster parent (see below) and you are caring for a child aged under one, you are not subject to any work-related requirements (see here).4s19(2)(c) WRA 2012; regs 85 and 89(1)(f) UC Regs If you are the responsible foster parent and you are caring for a child aged between one and 16, 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.5Reg 91 UC Regs
If you are claiming UC as a couple and your partner is the responsible foster parent, you can be subject to the work-focused interview-only requirement if you and your partner are both foster carers and 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.6Reg 91(2)(c) UC Regs
If you have a gap between placements where you do not have a child living with you, you can continue to be subject to the work-focused interview-only requirement for up to eight weeks, providing this requirement applied to you before the break started.7Reg 91(2)(d) UC Regs
Responsible foster parent
‘Responsible foster parent’ means that either you are the child’s only foster carer or, if you are a member of a couple who are both foster carers, you and your partner have nominated you as the responsible foster parent. Only one of you can be nominated. The nomination applies to all of your children and can only be changed once in the 12 months after the nomination or if there has been a relevant change of circumstances.8Regs 85 and 86 UC Regs
 
1     Reg 4 and 4A UC Regs »
2     Sch 4 paras 8, 9, 10 and 12 UC Regs »
3     Reg 66 UC Regs »
4     s19(2)(c) WRA 2012; regs 85 and 89(1)(f) UC Regs »
5     Reg 91 UC Regs »
6     Reg 91(2)(c) UC Regs »
7     Reg 91(2)(d) UC Regs »
8     Regs 85 and 86 UC Regs »
Employment and support allowance
Note: if you are not already getting income-related employment and support allowance (ESA), you cannot now claim it because of the introduction of UC.
If you are getting income-related ESA when you become a foster carer, it is not normally affected. You cannot normally get ESA if you are working, but fostering does not count as work for ESA purposes. Any payment you receive for fostering is disregarded as income for income-related ESA.1Sch 8 para 28 ESA Regs However, if you are paid any type of payment (such as a retainer) while you do not have a child accommodated with you, this is treated as income.2Sch 8 para 28 ESA Regs
Contributory ESA is not means tested and is not affected by any income you have from fostering.
 
1     Sch 8 para 28 ESA Regs »
2     Sch 8 para 28 ESA Regs »
Pension credit
Some pension credit (PC) claimants who are responsible for a child or qualifying young person get an additional amount for the child(ren) in their PC. You will not receive an additional amount in your PC for a child you are fostering.1Sch 2A para 4 SPC Regs Any payment you receive for fostering is disregarded for PC purposes. If you receive a payment while you do not have a child accommodated with you (eg, a retainer), this should not count as income unless it is treated as earnings.2s15 SPCA 2002; reg 17B SPC Regs
 
1     Sch 2A para 4 SPC Regs »
2     s15 SPCA 2002; reg 17B SPC Regs »
Housing benefit
If you are on housing benefit (HB) when you become a foster carer, your HB is not normally affected. There are no amounts included in your applicable amount (see here) for foster children,1Reg 21(3) HB Regs; reg 21(3) HB(SPC) Regs and any payment you receive for fostering is disregarded as income for HB.2Sch 5 para 26 HB Regs; reg 38(2) HB(SPC) Regs However, if you are under pension age and you are paid any form of payment (such as a retainer) while you do not have a child accommodated with you, this is treated as income for HB.3Sch 5 para 26 HB Regs
If you are a tenant in the private rented sector (not local authority or housing association), your HB is probably calculated on the basis of a local housing allowance (see here). This means that the maximum HB you can get is an amount determined by where you live and how many rooms you and your family require (the size criteria). The size criteria does not include room(s) for any child(ren) you are fostering, although you are allowed one extra room if you are a foster carer. This applies while you have a foster child or children living with you and also during a period of up to one year while you are approved as a foster carer but do not have a foster child living with you.4Regs 2 and 13D(3A)(b) HB Regs; regs 2 and 13D(3A)(b) HB(SPC) Regs
If you are under pension age and living in the social rented sector, your HB may be reduced if you are under-occupying your home (see here). When assessing whether you are under-occupying your home, you are not counted as needing rooms for any children you are fostering, although you are allowed one extra room because you are a foster carer. This applies while you have a foster child or children living with you and also during a period of up to one year while you are approved as a foster carer but do not have a foster child living with you.5Regs 2 and B13(6)(b) HB Regs
If you are struggling to pay your rent as a result of this or the local housing allowance rules, apply for a discretionary housing payment (see here).
 
1     Reg 21(3) HB Regs; reg 21(3) HB(SPC) Regs »
2     Sch 5 para 26 HB Regs; reg 38(2) HB(SPC) Regs »
3     Sch 5 para 26 HB Regs »
4     Regs 2 and 13D(3A)(b) HB Regs; regs 2 and 13D(3A)(b) HB(SPC) Regs »
5     Regs 2 and B13(6)(b) HB Regs »
Scottish child payment
You will not be treated as responsible for a child you are fostering for the purposes of Scottish child payment and therefore will not be entitled to Scottish child payment for the child.1Regs 9 and 12 SCP Regs
 
1     Regs 9 and 12 SCP Regs »
Non-means-tested benefits
Disability benefits
If the child you are fostering gets child disability payment (CDP), they keep getting it while in foster care as long as they continue to satisfy the usual conditions of entitlement.1Reg 17(5) DACYP(S) Regs Once the young person reaches age 16, if they are still on CDP, or if they get adult disability payment (ADP), the mobility component continues. The care component (CDP) or daily living component (ADP) continues if either:2s93(4)(a)(ii) and (iii) C(S)A 1995; reg 17(5)(a)(ii) DACYP(S) Regs; reg 27(5) DAWAP(S) Regs
    •their health or development is likely to be significantly or further impaired without provision of services; or
    •they are in need of care and attention because they are disabled.
If you think the child for whom you care is entitled to CDP, you can make a claim on their behalf.
If the child has been in local authority accommodation (eg, a residential unit) before coming to live with you, their CDP care component may have stopped being paid. Let Social Security Scotland (SSS) know they are now living with you and the care component should be paid again.
If a child you are fostering gets CDP, you may be able to be appointed to act on the child’s behalf in relation to their CDP award.3s85A SS(S)A 2018 Contact SSS about this.
 
1     Reg 17(5) DACYP(S) Regs  »
2     s93(4)(a)(ii) and (iii) C(S)A 1995; reg 17(5)(a)(ii) DACYP(S) Regs; reg 27(5) DAWAP(S) Regs  »
3     s85A SS(S)A 2018 »
Carer support payment
You cannot get carer support payment (CSP) if you are ‘gainfully employed’, which means if you are earning more than £196 a week. Any payment you receive for fostering does not count as earnings for this purpose and therefore does not prevent you being entitled to CSP.1Sch 2 para 14(f) CA(CSP)(S) Regs It is possible that SSS may refuse you CSP because it decides that you are ‘under contract’ to provide care under your fostering agreement.2Reg 5(4) CA(CSP)(S) Regs At the time of publication it was unclear whether this is correct, so you should seek advice if this affects you.
If you are entitled to CSP and you also get UC, income-related ESA, PC or HB, you should get a carer element, carer premium or carer addition in your applicable amount (see Chapter 1).
If you are entitled to CSP, you may also be entitled to carer’s allowance supplement (see here).
 
1     Sch 2 para 14(f) CA(CSP)(S) Regs »
2     Reg 5(4) CA(CSP)(S) Regs »
National insurance credits
You are entitled to be credited with class 3 NI contributions for any week in which you are an approved foster carer.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 your fostering agency or local authority.
 
1     s23A(2) and (3)(b) SSCBA 1992; regs 4 and 9 SS(CCPC) Regs »
2     Reg 9(a) SS(CCPC) Regs »