Financial allowances pilot for kinship carers
The Department for Education is piloting a financial allowance for kinship carers in 7 local authorities in England, called Kinship Zones. The kinship allowance is the same as the fostering national minimum allowance (NMA) and is for some kinship carers with, or on their way to getting, a special guardianship order (SGO) or a ‘lives with’ child arrangements order (CAO).
This advice applies to: England
On this page
Click on the link below to take you to the section you'd like to read:
- The financial allowances pilot
- The local authorities chosen for the pilot
- Eligibility for the financial allowances pilot
- Kinship financial allowances pilot payments
- How the financial allowances pilot will affect other payments and benefits
- How to claim the allowance
- Other sources of financial support if you are not eligible for the financial allowances pilot for kinship carers
- Further information on the financial allowances pilot for kinship carers
The financial allowances pilot
The Department for Education (DfE) has chosen 7 local authority areas for a long-awaited pilot of financial allowances for kinship carers. The DfE are responsible for children’s social care policy, including kinship care, in England.
Eligible kinship carers in 7 local authority areas in England can claim a financial allowance for 3 years. The allowance will be the same as the fostering national minimum allowance (NMA).
The pilot is expected to run for 3 and a half years. The first 2 years of funding has been confirmed at £126m.
The pilot will test whether providing financial support for kinship carers helps keep children with their families – improving stability and outcomes for those children.
The government invited local authorities to apply to take part in the pilot and used a selection process to choose the local authorities to take part.
You can read Kinship’s response to the announcement in our news story.
The local authorities chosen for the pilot
The Kinship Zone local authorities are:
- Bexley
- Bolton
- Newcastle
- North East Lincolnshire
- Medway
- Thurrock
- Wiltshire
Local authorities will lead communications to eligible kinship families and should promote this through their kinship local offer. Each Kinship Zone will be given a package of funding and support to enable them to tailor delivery to local need within the pilot framework.
Eligibility for the financial allowances pilot
You must live in, or be supported by, one of the local authorities taking part in the pilot.
Kinship carers eligible for the allowance
The pilot is for kinship carers who are caring for a child up to the age of 18 and either:
- have a special guardianship order (SGO)
- have a ‘lives with’ child arrangements order and the child would be in care of the local authority without this order
- are in the process of getting one of these
Kinship carers with a special guardianship order (SGO)
You are automatically eligible.
It doesn’t matter whether the SGO was made in public law or private law proceedings.
Kinship carers with a ‘lives with’ child arrangements order (CAO) made in public law proceedings
(children’s services are involved as part of care proceedings)
You are automatically eligible and there is no need to prove the child would otherwise be in care.
Kinship carers with a ‘lives with’ CAO made in private law proceedings (you applied yourself)
You may be eligible if you can show that the child would probably have gone into local authority care if you hadn’t stepped in.
Evidence can include proof that:
- the child was unsafe
- the child was homeless
- the child was not properly cared for by parents
and was at risk of becoming a looked after child or entering the care system.
- Kinship carers who have obtained an SGO for the child in public law proceedings or private law proceedings.
- Kinship carers who have applied for an SGO through private law proceedings and have passed the first hearing dispute resolution appointment (FHDRA).
- Kinship carers who have obtained a ‘lives with’ CAO for the child in public law proceedings.
- Kinship carers who have obtained a ‘lives with’ CAO through private law proceedings – or who have applied for a ‘lives with’ CAO and have attended a FHDR meeting – where the interim or final ‘lives with CAO’ does not name a birth parent of the child subject to the Order and at least one of the following conditions apply to evidence the named child would be ‘otherwise in care’:
- immediately before the kinship arrangement the child was ‘looked after’ by a local authority (for example via an interim care order or under section 20 of the Children Act 1989).
- immediately before the kinship arrangement the child was, or is still, under a child protection plan.
- the family court noted safeguarding concerns arising from the contents of a welfare report during private law proceedings.
- a Family Group Decision Making meeting was convened and a decision was taken for the child to live full-time with a named kinship carer; which is now happening.
- both parents of the child are dead; but before they died, at least one of them was caring for and living with the child.
- the child was abandoned by either or both of their parents and at least one of them was previously caring for and living with the child immediately before abandoning the child.
- either one or both parents of the child are imprisoned but immediately prior to that, the parent/s were previously caring for and living with the child.
- either one or both parents have been detained in hospital pursuant to the Mental Health Act 1983 but they were previously caring for and living with the child immediately prior to being detained.
If you meet any of these conditions but do not hold or are not in the process of getting either of:
- a special guardianship order (SGO)
- a ‘lives with’ child arrangement order (CAO)
you will not qualify for a kinship allowance in this pilot.
Kinship financial allowances pilot payments
The financial allowances pilot payments will be at least the same as the fostering national minimum allowance (NMA). This ranges from £170 to £299 per week dependant on location and age of the child. Further details can be found on GOV.UK.
Kinship carers will get the allowance paid weekly.
The allowance in the pilot will not be means tested. This means your income will not affect how much money you will get from the allowance.
Eligible carers will receive the allowance for the first 2 years of the pilot. The government have said “Eligible carers will receive the allowance for the duration of the funded pilot period in their area. Funding is confirmed for the first two years; later years depend on fiscal decisions.”
How the financial allowances pilot will affect other payments and benefits
Getting the kinship financial allowances in pilot local authorities will not affect any of the following:
- Universal Credit including the child element
- Child Benefit
- Guardian’s Allowance
- Tax-free childcare entitlements
- Pension Credit (except where the allowance is saved as capital)
- Housing Benefit for customers over state pension age (except where the allowance is saved as capital)
For more information, please speak to your local authority.
How to claim the allowance
Delivery of this support begins on 1 April 2026. Local authorities will start to get in touch with local kinship families from now.
You can find out contact details for your local authority on Kinship Compass. For some local authorities, you will also find a link to their local offer.
Other sources of financial support if you are not eligible for the financial allowances pilot for kinship carers
Some kinship carers will not be eligible for an allowance in pilot local authority areas, and many more will live in areas not selected for the pilot.
We have support and advice available for all kinship carers to help navigate financial difficulties. We also run regular free online workshops on the financial support available for kinship carers
Our #ValueOurLove campaign continues to call on the government to go further and faster to give all kinship carers the financial support they desperately need.
Further information on the financial allowances pilot for kinship carers
The government have said, “The 7 local authorities were selected following an expression of interest process held last June. The applicants that passed the criteria where then randomly selected by an algorithm. Together, the seven local authority areas offer a useful mix of geography, demographics, and service models. This was intentional as the pilot is designed to test what works at scale in varied local contexts, so robust learning can be generated for future decisions.
As the programme is a time‑limited test‑and‑learn pilot, the aim was not to create a national offer but to select a set of areas whose data would collectively produce a robust evidence base. Lessons will be published and used to inform future policy decisions. You can find more information about the Expression of Interest process here: Kinship Allowance Pilot – GOV-UK Find a grant.”
The government have previously said, “Where eligible kinship carers are continuing to receive ongoing financial support from the local authority where their child was previously looked after and that local authority is participating in the pilot, the local authority is expected to continue providing financial support for the duration of the pilot regardless of where the kinship family may currently live.
This applies even in circumstances where ongoing financial support was due to end, including where a local authority would typically have ceased providing financial support after 2 or 3 years following a special guardianship order being made. This means that eligible kinship carers supported by participating local authorities may continue to receive ongoing financial support for longer than expected. For the purposes of the pilot and in order to ensure robust evaluation, participating local authorities will be asked to retain responsibility for supporting special guardianship families where the child was previously looked after beyond the 3 years outlined in special guardianship statutory guidance.
Eligible kinship carers living in Wales, Scotland or Northern Ireland can be supported through the pilot if the child they care for was previously looked after by a local authority in England and they are participating in the pilot.”
We’re seeking further confirmation on this point and will update this page as soon as possible.
If you are eligible to claim a financial allowance under the pilot, you are under no obligation to take the allowance. Eligible carers will be able to choose whether to make a claim to receive the allowance or not.
The DfE wants to understand the impact of improving financial support for kinship carers and to establish if this helps to minimise the risk of kinship placement breakdown, enables kinship families to consider arrangements outside of the care system, and subsequently alleviated cost pressures on local authorities.
The impact of the pilot on local authorities, kinship carers and children in their care will be independently evaluated by Foundations – the What Works centre for Children & Families. Decisions about future rollout will be informed by the findings of the evaluation. We are seeking clarity on when future funding decisions will be made.
Eligible kinship carers do not need to complete training to access the allowance.
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