What is the difference between Fostering Allowance?

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Londoncarer
Posts: 2
Joined: Wed May 22, 2019 11:28 am

What is the difference between Fostering Allowance?

Post by Londoncarer » Thu May 23, 2019 11:55 am

Hi, I am curious about the difference between the two ? I know Fostering allowance is money to look after the child and a wage for the Fosterer. What is special guardian allowance, because an SGO can claim Tax credits and Child benefit. Is it the same as Fostering allowance, extra money to look after a child and a wage?

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Suzie, FRG Adviser
Posts: 949
Joined: Thu Jul 28, 2011 12:25 pm

Re: What is the difference between Fostering Allowance?

Post by Suzie, FRG Adviser » Wed May 29, 2019 5:31 pm

Dear Londoncarer
You wish to know the difference between a fostering allowance and special guardianship allowance. As you know a foster carer is approved by the local authority or other agency and are effectively working for the local authority when caring for a child who is in long or short term foster placement.

Where a person has applied for and granted a special guardianship order that person will have parental responsibility for the child or children so will be entitled to claim the usual benefits that a parent can claim. A foster carer is not in that position as the responsibility for the child’s needs lie with the local authority. The special guardianship allowance is paid after a means assessment is carried out by the local authority and will also depends on the child’s needs.

Below I have set out the information in our A-Z of terms on our website:-

Anyone who is caring for a looked after child as a foster carer should be paid a fostering allowance by the Children’s Services department which placed the child with them. This applies whether they are a professional unrelated foster carer or a family member or friend who is approved as a foster carer for the child (whether on a temporary or long term basis).
The duty to pay a fostering allowance applies from the date the child is first placed with the foster carer. Foster carers are also paid additional amounts for the child's birthday, holidays and religious festivals.


When someone is granted a Special Guardianship Order, Children’s Services can give that person financial help by paying them a Special Guardianship Allowance, but they don’t have to. Any payments they agree to make will be means tested and are usually reviewed on a regular basis.
If a Special Guardian was previously a foster carer and received a fostering allowance for the child, they may get a higher rate of special guardianship allowance for the first two years.
From November 2016, when the new, lower benefits cap takes effect, Special Guardians Allowance will be exempt from the cap. This means that the money you receive from a Special Guardians Allowance will not count towards your total benefits when calculating how much benefit you get, for the purposes of the benefits cap.


I hope this clarifies the situation for you but should you wish to speak to an adviser do telephone our advice line on 0808 801 0366. The advice line is open from 9.30am to 3pm Monday to Friday.

Hope this is helpful.

Best wishes

Suzie

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