'Looked after' children

This information applies to children who are ‘looked after’ by the local authority (Children's Services). It does not apply to families whose children are living away from home under any private arrangements or who are away from home solely to receive education.

There are different rules depending on which benefit it is, how long your child is away from home, where they stay and whether they come home during the week. The rules are complicated so it is best to get advice before arranging for your child to have a break.

If your child is going to be ‘looked after’ you should tell the Department for Work and Pensions, Tax Credit Office and local council benefit offices as soon as possible to avoid being overpaid benefit. If you can, keep copies of letters you send and make a note of the date letters are sent or of any phone calls in case there is a problem later on.

Child benefit

Child benefit usually stops after your child has been ‘looked after’ by a local authority for more than eight consecutive weeks. It can carry on after the first eight weeks if your child comes home for at least two consecutive nights every week. If your child is not able to come home this often, you can still get child benefit if s/he comes to stay for at least a week, plus any extra nights they are at home at the end of that seven-day period.
If your child is ‘looked after’ solely because of their disability, child benefit will continue for 12 weeks. It can be paid indefinitely if you give money to your disabled child or regularly spend money on her/his behalf.

If you are getting an addition for your child with a non-means-tested benefit, this will continue as long as you still get child benefit.

See form CH194A available from www.hmrc.gov.uk for further information.

Disability living allowance

If your child is being ‘looked after’ by the local authority, the mobility component will continue to be paid. However, it may become payable to someone else, such as a foster carer, because it is supposed to follow the child.

The care component of DLA is affected by stays in special accommodation like a local authority care home and will usually stop after 28 days. This can include residential homes, whether they provide education or not, if the child is also ‘looked after’. A ‘linking rule’ means that any stays which are separated by less then 28 days are added together when working out when the care component of DLA stops. You can still get it for any days that are spent at home.

Example

Yasmine lives at home with her parents. She has two full days of respite care every weekend, leaving home on Friday and returning on Monday. Only Saturday and Sunday count as stays in ‘special accommodation’. She can carry on like this for 14 weeks (2x14=28 days) before her DLA care component is affected. After this the care component will not be paid for the days that she is in respite unless she breaks the link by spending 29 days at home. The next time Yasmine goes into respite, after a 29 day break, her care component will be paid for another 28 days.

Yasmine will still be able to get paid DLA care for all the days when she is at home. If your child goes into foster care s/he will still be able to get DLA. The local authority and DLA Unit will decide who gets the payment on the child’s behalf. The payment could remain with the parent or may be changed to the foster carer or other appointed person.

Carer’s allowance

Carer’s allowance will stop if your child’s DLA care component stops. It will also stop if you cease caring for your child for 35 hours or more a week. If your child comes home from residential care, carer’s allowance can be paid again for any week where you care for them for 35 hours or more. A week runs from midnight on Saturday to midnight the following Saturday. You can include any time spent preparing for or cleaning up after the child’s visit towards the 35 hours.

Example

Becky’s mother Jill used to get carer’s allowance for her but this has stopped because Becky is in residential care. Becky comes home on Thursday for a long weekend and returns to care the following Tuesday. Jill will be able to get carer’s allowance for the week ending on Saturday because she has spent 35 hours caring for Becky. She will also get carer’s allowance for the following week because she spent Sunday and Monday caring for Becky.

Income support, jobseeker’s allowance and employment & support allowance

If your child is ‘looked after’ by the local authority, the carer premium will continue to be included in your benefit for 12 weeks.

However, at the end of this period, if your only dependent child has gone into care you may no longer be able to claim income support as a lone parent or carer. You may need to register as unemployed and claim income-based jobseeker’s allowance instead. If you are incapable of work due to ill health or disability you may be able to get ESA. Get advice if this happens.

Housing and council tax benefit

If your child is ‘looked after’, your housing and council tax benefit may need to be re calculated. You will need to inform the district or local council who pay the benefits when your child is being ‘looked after’ and when your child is back at home.

If you continue to receive income support, income-based jobseeker’s allowance or income-related ESA while your child is away from home, your housing benefit and council tax benefit will not change. However, if you stop getting any of these benefits your housing benefit and council tax benefit may be reduced, which means you will have to pay more rent and council tax. The change will happen from the week after your child leaves your home.

If your child comes home for a week, or part of a week, inform the housing and council tax benefit section at your local council so that benefit can be increased for the whole of that week.

Tax credits

If your child is being ‘looked after’ by the local authority you cannot claim child tax credit for that child unless s/he has been placed in the accommodation because of a disability.
You must notify the Tax Credit Office within one month of the change if your child is no longer living with you.

If you are fostering or adopting a child there are also special rules about benefits. For more information click on extra money if you foster or adopt.