CSF have discretion to provide cash help in exceptional circumstances under Section 17 of the Children Act to help ‘children in need’. They might use this power, for example, to help a young person of 16-17 to pay their rent, as an alternative to ‘looking-after’ them. It can also be used to help families who take in a child without formally fostering them.
Section 17 payments are completely ignored when benefits or tax credits are calculated. A child who is living with someone who gets Section 17 money for them will be treated as part of that person’s family for benefit purposes. This means that child benefit, child tax credit etc (and possibly extra housing and council tax benefit)will all be payable.