Benefits & Budgeting Advice
Updated: Sep 20
Money Matters
Taking responsibility for a sibling can change your finances very quickly. You may suddenly need to pay for food, clothing, school costs, transport, furniture, childcare and other everyday expenses. You may also have to reduce your working hours, leave employment or pause your education because of your caring responsibilities. Research has found that many kinship carers experience financial hardship and may give up employment or education to care for children in their family (McCartan et al., 2018). For sibling kinship carers, these pressures can be particularly significant because carers are often younger adults who may still be studying, starting work or establishing their own financial independence. Caring for a child costs money, and you may be entitled to financial support. This page explains some of the benefits, allowances and practical financial support that may be available.
Important: Benefit rules change regularly and entitlement depends on your circumstances, the child's circumstances, your income, savings, immigration status and the legal arrangement under which you care for your sibling. The information on this page is general guidance and is not a substitute for individual benefits or legal advice.
First: Understand Your Caring Arrangement
The financial support available to you can depend on how your sibling came to live with you and their legal status.
You may be caring for your sibling:
Informally, without a court order.
Under a Child Arrangements Order.
Under a Special Guardianship Order.
As an approved kinship foster carer.
Under another legal arrangement.
Because your sibling is looked after by the local authority.
These arrangements can have very different financial consequences. For example, an informal kinship carer may be able to claim certain benefits but may not receive a regular kinship allowance. Over 95% of all sibling kinship care is informally arranged. Whilst, a kinship foster carer will normally receive a fostering allowance, while some carers with formal legal orders may receive support from children's services depending on their circumstances.
Government benefits
These can include:
Child Benefit.
Universal Credit.
Guardian's Allowance.
Carer's Allowance or, in Scotland, Carer Support Payment.
Disability-Related Benefits, such as Personal Independence Payments.
Housing Benefit and Support.
Council Tax Reduction.
Other means-tested benefits or local support.
Kinship or fostering payments
Depending on your circumstances, you may also receive:
Fostering allowance.
Kinship allowance.
Child Arrangements Order allowance.
Special Guardianship financial support.
Other payments from children's services.
Receiving one payment does not necessarily mean you cannot receive another. However, some payments can affect others, so it is important to check before making a claim or changing your circumstances.
Child Benefit
If your younger sibling lives with you and you are responsible for them, you may be able to claim Child Benefit. You do not have to be the child's parent to qualify. GOV.UK states that you may be able to receive Child Benefit when you have an informal arrangement to look after a friend or relative's child, although the rules can be different where a local authority is paying towards the child's accommodation or maintenance. Only one person can receive Child Benefit for a particular child.
For the 2026–27 tax year, the weekly rates approx are:
£27.05 approx for the eldest or only child.
£17.90 approx for each additional child.
Child Benefit can also be important because the person claiming it may receive National Insurance credits, which can help protect their State Pension record when they are not working or are earning below the relevant threshold. You can claim Child Benefit when a child comes to live with you. A new claim can normally be backdated for up to three months.
Tip: If your sibling has recently moved in with you, check Child Benefit even if you are already receiving another benefit.
Guardian's Allowance
If you are bringing up a child whose parent or parents have died, you may also qualify for Guardian's Allowance. You normally need to qualify for Child Benefit and meet the specific conditions relating to the child's parents. There are also circumstances where Guardian's Allowance can be paid when one parent is still alive, for example where the surviving parent is in prison for at least two years or cannot be found.
For 2026–27, Guardian's Allowance is £22.95 approx per week for each child and is tax-free. It is paid in addition to Child Benefit. Guardian's Allowance does not normally count as income for Universal Credit and does not count towards the benefit cap.
Universal Credit
Universal Credit (UC) is a means-tested benefit for people on a low income or who are out of work. Kinship carers can potentially qualify. The rules can be particularly important if you have stopped working or reduced your hours because you are caring for your sibling.
GOV.UK confirms that a family-and-friends or kinship carer may receive the additional Universal Credit amount for a child who normally lives with them where the relevant conditions are met. The rules differ depending on whether the child is looked after by the local authority and the type of kinship arrangement. If you have recently become a kinship carer, there are also special work-related rules. GOV.UK states that a kinship carer does not normally have to work or undertake work-related activity where the child joined their household within the previous 12 months and is aged between one and 16. After that period, the work-related requirements depend on the circumstances and the age of the youngest child.
Universal Credit May Include Additional Amounts
Depending on your circumstances, UC may include amounts relating to: children; housing costs; childcare; caring responsibilities; and disability or health conditions.
Carer's Allowance
If your sibling has a disability or health condition and receives a qualifying disability benefit, you may be able to claim Carer's Allowance if you provide at least 35 hours of care a week and meet the other eligibility conditions. For 2026–27, Carer's Allowance is £86.45 approx per week. Carer's Allowance can affect other benefits, so it is important to check the overall effect before claiming.
Scotland
Scotland has its own Carer Support Payment, administered by Social Security Scotland.
Kinship carers in Scotland can potentially qualify for Carer Support Payment where the relevant conditions are met, including where they receive a local-authority kinship-care allowance.
Kinship Foster Care Allowances
If your sibling is looked after by the local authority and you become an approved kinship foster carer, you should receive a fostering allowance. Kinship foster carers can also receive additional support depending on their local authority and circumstances. This is different from an informal sibling kinship arrangement. Research has highlighted a longstanding inequality between kinship foster carers and unrelated foster carers in the level of practical and financial support provided (Farmer, 2009; McCartan et al., 2018).
If you are a kinship foster carer, ask your local authority for:
The current fostering allowance rate.
What expenses can be reimbursed.
Whether additional payments are available.
Support with birthdays and celebrations.
Clothing allowances.
Travel expenses.
Respite arrangements.
Support groups.
Training.
Practical equipment.
Do not assume that because you are a family member you should receive less support.
The Kinship Zones Financial Allowance Pilot in England
There is an important new development in England. From April 2026, the government began piloting a financial allowance for eligible kinship carers through Kinship Zones. The pilot is taking place in seven local authorities: Bexley; Bolton; Newcastle; North East Lincolnshire; Medway; Thurrock; and Wiltshire.
The pilot is testing a regular financial allowance for eligible kinship carers, with payments linked to the national minimum fostering allowance. The published 2026–27 rates vary according to the child's age and whether the placement is in London, the South East or elsewhere in England.
This is a pilot, not a universal payment for every kinship carer in England.
If you live in one of the participating areas, ask your local authority whether you are eligible.
Kinship allowances in Scotland
Scotland has a different national approach. The Scottish Recommended Allowance (SRA) provides a standard minimum allowance for eligible foster and kinship carers.
For 2026–27, the weekly rates are:
£177.68 for children aged 0–4
£206.71 for children aged 5–15
£283.35 for young people aged 16–17
The Scottish Government states that the allowance applies to all eligible kinship carers receiving a care allowance and certain informal kinship carers, including some arrangements involving a Kinship Care Order. The interaction between a kinship allowance and means-tested benefits can be complicated, so obtain individual advice before assuming how an allowance will affect your other income.
Financial Support From Children's Services
Government benefits are not the only possible source of help. Depending on your circumstances, your local authority may be able to provide financial or practical support.
For example, support may sometimes be available towards:
Essential furniture.
Beds and bedroom equipment.
Clothing.
Nursery equipment.
Transport.
Other costs associated with caring for a child.
In England, support under Section 17 of the Children Act 1989 can be available where a child is assessed as a "child in need". The type and amount of support will depend on the child's circumstances and the local authority's assessment. For informal kinship carers, financial support from children's services can be particularly important because there is no universal kinship-care allowance for all informal arrangements. Ask your local authority what support is available rather than assuming that you do not qualify.
Housing Costs and Council Tax
Becoming responsible for a younger sibling can change your housing needs. If you are renting, your household may become larger and you may need additional space. Depending on your circumstances, you may qualify for help with housing costs through Universal Credit or Housing Benefit. Housing Benefit rules depend on factors including your rent, income, savings, household circumstances and the type of housing you live in. You may also be able to apply for Council Tax Reduction if you are on a low income or receiving benefits. Council Tax Reduction is administered by your local council, and the rules vary between councils. A reduction can potentially be as much as 100%, depending on the local scheme and your circumstances.
If your sibling has moved in with you, tell the council if this changes the people living in your household.
Free School Meals
School costs can add significant pressure to a household budget. In England, the rules for free school meals changed from the beginning of the 2026–27 academic year. From September 2026, children in households receiving Universal Credit are eligible for free school meals, subject to the applicable rules. The Department for Education has introduced an expanded category covering households receiving Universal Credit, alongside the existing targeted provision. If your sibling attends school, make sure the school knows about your circumstances and check whether you need to make an application. Free school meals can also connect families with other support, including holiday food and activity provision in eligible areas.
Budgeting
Benefits and allowances are important, but having a clear picture of your finances can also help. When a child suddenly moves into your home, it is easy to underestimate how much your household costs have increased. Try creating a monthly budget that includes:
Money Coming In = wages or self-employment income; Universal Credit; Child Benefit; Guardian's Allowance; Carer's Allowance or Carer Support Payment; kinship or fostering allowances; child maintenance; and other regular income
Housing = rent or mortgage; Council Tax; gas; electricity; water; insurance; and repairs and maintenance.
Childcare Costs = food; clothing; school uniform; school trips; transport; school meals; activities; pocket money; toiletries; phone; medical or health-related costs; furniture and equipment.
Your Own Costs = food; transport; phone; internet; work or education costs; debt repayments; insurance; prescriptions or health costs; and essential personal expenses.
Irregular Expenses = birthdays; Christmas or religious celebrations; school trips; school uniform; holidays; replacing electrical items; car repairs; moving house; and legal costs.
Divide Your Remaining Money Between: everyday spending; weekly spending; for your sibling's activities; unexpected costs; debt repayments; and savings, if possible
Keep records
When you become a sibling carer, keep copies of important documents. Create a folder — physical or digital — containing:
Sibling's birth certificate.
Your own identification.
National Insurance numbers.
Court Orders.
Fostering documentation.
Social-care assessments.
Placement plans.
Benefit letters.
Allowance statements.
School correspondence.
Medical information.
Receipts for significant expenses.
Correspondence with the local authority.
Keep a record of applications you make and the dates you receive decisions. If someone tells you that you are not entitled to support, ask them to explain the decision and, where appropriate, provide it in writing. This can be particularly useful if you later need to ask for a review or challenge a decision.
Keep Receipts For Important Expenses
If you are paying for things because your sibling has come to live with you, keep receipts where possible. This might include: beds; mattresses; school uniforms; clothing; car seats; pushchairs; furniture; travel; legal costs; childcare; and school equipment.
You may not automatically be reimbursed, but keeping evidence of costs can help when discussing your circumstances with children's services or another professional.
Debt and Emergency Financial Help
If you cannot afford essentials such as food, heating or other household costs, contact your local council to ask what emergency or hardship support is currently available. In England, the Household Support Fund has provided local authorities with funding to help vulnerable households with essential costs, including food, utilities and certain housing costs. Food banks, community organisations and local charities may also be able to provide short-term support. The cost of caring should not be hidden.
Research into kinship care has repeatedly identified financial disadvantage. Kinship carers may: leave employment; reduce working hours; give up education; experience debt; live in overcrowded housing; rely on benefits; and live in areas of high deprivation (Broad, 2007; Farmer, 2009; McCartan et al., 2018; Selwyn & Nandy, 2012).
Sibling carers can be particularly vulnerable because they are often young and may have had little opportunity to establish financial security before becoming carers. Some carers describe these sacrifices as simply part of their responsibility to their family (Griggs et al., 2010). But sacrifice should not mean invisibility. The fact that you have stepped forward to care for your sibling does not mean that you should be expected to cope without financial support.
Don't Be Afraid To Ask For Help
You may worry that asking for financial help will make professionals think you cannot cope.
This is understandable. Research has found that some (sibling) kinship carers are hesitant to seek help because they fear being judged or viewed as unsuitable carers (Taylor et al., 2020). But asking for help can make a placement more sustainable.
A Financial Checklist For New Sibling Carers
Within the first few weeks:
Find out the legal status of the arrangement.
Ask the local authority what financial support may be available.
Check whether you can claim Child Benefit.
Check whether Guardian's Allowance may apply.
Check Universal Credit entitlement.
Check Carer's Allowance or Carer Support Payment if your sibling has a qualifying disability benefit.
Check your Council Tax position.
Check your housing situation.
Ask the school about free school meals and other school support.
Find out whether childcare support is available.
Keep receipts for significant expenses.
Start a simple household budget.
Check your entitlement using an independent benefits calculator.
If money is still tight:
Ask children's services about financial assistance.
Ask whether your local authority has a kinship-care financial support scheme.
Ask whether you are eligible for a kinship or fostering allowance.
Check local emergency hardship support.
Seek free debt advice if you are struggling with repayments.
Check whether you or your sibling may qualify for disability-related support.
Ask about education, childcare and transport support.
Support is different across the UK:
The benefits system is UK-wide in some areas but devolved in others. Rules and support can therefore differ between: England, Wales, Scotland and Northern Ireland.
For example, Scotland has the Scottish Recommended Allowance for eligible kinship carers, while England is currently piloting Kinship Zones in seven local authority areas. If you live in Wales, Scotland or Northern Ireland, do not assume that information written for England applies to you. Always check the current rules for where you live.
Plan For Your Future
Financial advice for sibling kinship carers should not only be about surviving from one month to the next. You also deserve to think about your own future. Where possible, consider:
Continuing your education.
Maintaining employment.
Developing your career.
Maintaining your own relationships.
Planning for housing.
Taking time for yourself.
Protecting your pension position.
The aim of financial support should not simply be to keep a placement going at any cost. It should be to help create a stable, secure family environment in which both the child and the sibling carer can thrive.
Useful Links and Organisations
GOV.UK – Benefits calculators
Use an independent benefits calculator to check what you may be entitled to.
Benefits calculators – GOV.UK
GOV.UK – Child Benefit
Information about eligibility and how to claim.
Child Benefit – GOV.UK
GOV.UK – Guardian's Allowance
Information about eligibility and current rates.
Guardian's Allowance – GOV.UK
GOV.UK – Universal Credit
Information about Universal Credit and how to claim.
Universal Credit – GOV.UK
GOV.UK – Carer's Allowance
Information about eligibility and current rates.
Carer's Allowance – GOV.UK
GOV.UK – Council Tax Reduction
Find out how to apply through your local council.
Council Tax Reduction – GOV.UK
GOV.UK – Free school meals
Check eligibility and find your local application process.
Free school meals – GOV.UK
Kinship – Kinship provides specialist information about financial support and benefits for kinship carers in England and Wales.
Kinship – financial support and benefits
References
Broad, B. (2007). Research examining kinship care, including poverty, employment, housing, financial circumstances and the support available to kinship families.
Farmer, E. (2009). Research examining children placed with family and friends, including financial circumstances, housing, family conflict and professional support.
Griggs, J., et al. (2010). Research examining children's experiences of kinship care and the financial, practical and emotional circumstances of kinship families.
McCartan, C., et al. (2018). Research examining kinship care, including financial hardship, socioeconomic deprivation, access to services and the costs associated with kinship placements.
Selwyn, J. & Nandy, S. (2012). Research examining the characteristics and circumstances of kinship carers, including employment, education, poverty and deprivation.
Selwyn, J. & Nandy, S. (2014). Research using UK Census data to examine the scale and characteristics of kinship care, including poverty and the socioeconomic circumstances of children and carers.
Taylor, J., et al. (2020). Research examining the experiences of kinship carers, including socioeconomic deprivation, access to support and relationships with services.
UK Government / Department for Education (2026). Kinship Zones: Programme Specification. Guidance concerning the 2026 financial allowance pilot for eligible kinship carers in participating English local authorities.
UK Government / HM Revenue & Customs (2026). Child Benefit, Guardian's Allowance and tax credits – rates and allowances. Current 2026–27 rates.
UK Government / Department for Work and Pensions (2026). Benefits calculators. Information about independent benefits calculators and the information needed to assess entitlement.
UK Government (2026). Universal Credit if you have children. Guidance concerning Universal Credit and family-and-friends/kinship carers.
Scottish Government (2026). Scottish Recommended Allowance: information for carers and professionals. Current Scottish kinship and fostering allowance information.
Important: check before relying on this information
Benefits, allowances and local authority support can change. Eligibility is also highly dependent on individual circumstances.
This page provides general information and is not legal, financial or benefits advice.
