Kinship Allowance Pilot: Who Qualifies and Which Areas Are In?

If you’re raising a child in the wider family network, you’ll know how crucial the right support can be. In England, the Department for Education (DfE) is launching a Kinship Allowance Pilot that—if your local authority is selected—will pay eligible kinship carers a weekly allowance equivalent to the National Minimum Allowance (NMA) for foster care. Below, we unpack what the pilot is, who qualifies, how much is paid, when it starts, and—importantly—which areas are (and aren’t yet) confirmed.

What is the Kinship Allowance Pilot?

The DfE is funding up to 10 local authorities in England to pay a weekly, non-means-tested allowance to eligible kinship carers. The aim is to test whether better financial support helps children remain safely within their family networks, preventing unnecessary entry into care and reducing pressure on local placement budgets. The pilot stems from the government’s kinship strategy commitments and a £40–£44m funding package.

Why is it happening now?

Evidence and sector feedback have highlighted that financial inequality between foster care and kinship care can push children into the care system or destabilise placements. The pilot evaluates whether parity-style allowances improve stability and outcomes.

When does it run?

The DfE opened expressions of interest on 17 June 2025. Successful councils are due to be notified in late September 2025, with payments starting from November 2025 and the pilot running until March 2029.

Who qualifies?

Eligibility focuses on kinship carers looking after children who would otherwise be in care and where the arrangement is—or is becoming—legally formalised.

The legal orders that qualify

Kinship carers are eligible if they are caring for a child (up to age 18) who is:

• subject to a Special Guardianship Order (SGO), or
• subject to a ‘lives with’ Child Arrangements Order (CAO) and would otherwise be in care.

The pilot also covers children subject to an SGO/CAO application progressing through the family court, where that “otherwise in care” test is met.

What does “otherwise in care” mean?

In practice, this refers to situations where—without the kinship arrangement—the local authority would likely need to accommodate the child. Councils will assess this against the DfE’s guidance when administering the pilot.

Who is not included?

Informal kinship arrangements (no legal order and the child is not looked-after/at risk of becoming looked-after) are outside the pilot. Also, if a local authority already offers a kinship allowance matching the foster care NMA, it cannot apply to be a pilot area; households in such areas should check their council’s existing scheme instead.

England only (with one exception)

The pilot is England-only. However, if a kinship child was previously looked after by an English local authority that becomes a pilot area, there may be limited cross-border scenarios for carers living elsewhere—check the official guidance when the areas are announced.

How much is the allowance?

The weekly pilot payments are set to match the foster care National Minimum Allowance for the child’s age and the carer’s region (London, South East, Rest of England). For 6 April 2025 – 5 April 2026, the NMA is:

• London: £198 (age 0–2) to £299 (age 16–17)
• South East: £189 (0–2) to £288 (16–17)
• Rest of England: £170 (0–2) to £258 (16–17)

Rates update each April; selected councils must apply the then-current NMA.

Note: Some councils and independent fostering agencies pay more than the NMA in foster care; the pilot standardises kinship payments at NMA equivalence only, not agency-style “top-ups”.

Will the allowance be taxed?

Qualifying Care Relief (QCR) can apply to kinship carers, allowing a generous tax threshold combining a fixed annual amount and weekly amounts per child, so many carers pay little or no tax on care-related payments. Always check the latest HMRC helpsheet HS236 and get independent advice for your circumstances.

Which areas are in?

Status today (12 September 2025)

As of publication, the DfE has not yet published the list of successful pilot councils. The department’s timetable indicates late September 2025 for notifications, with agreements in October and go-live in November. We’ll update once the official list appears.

How the DfE is choosing councils

• Up to 10 local authorities in England will be selected.
• Councils ineligible include those under a Section 114 notice and those that already offer kinship allowances at NMA level for eligible legal orders.
• The selection emphasises “added value”—i.e., areas where the pilot would significantly improve the current offer.

How to check if your area is included (once announced)

1. DfE page: The official pilot/“Find a grant” page and DfE updates will carry the list or link to selected areas.
2. Council ‘kinship local offer’: Selected councils must publicise eligibility and how to claim.
3. Trusted charities: The charity Kinship maintains a policy tracker and will flag participating areas for carers.

What the allowance covers (and doesn’t)

The allowance is designed to offset the day-to-day costs of raising the child—food, clothing, utilities, school costs, activities—similar to how the NMA is intended to work in foster care. Councils may separately offer additional payments (e.g., birthdays, religious festivals, holidays, mileage) under their local policies, but the pilot itself focuses on the weekly allowance.

How to prepare if you think you’ll be eligible

1) Gather your paperwork early

Have copies of your SGO/CAO (or proof of an ongoing application), the child’s details, and any correspondence that evidences the “otherwise in care” threshold—your social worker or legal adviser can help articulate this.

2) Watch the announcement window

Keep an eye on late-September updates from the DfE, your local authority, and Kinship’s policy tracker. If your area is selected, councils will publish how to apply and the start date.

3) Understand the NMA for your band

Check the current NMA for your region and child’s age so you know what to expect from November onwards.

4) Take independent advice

For benefits and tax, look at QCR guidance and speak to an advisor—especially if you combine kinship care with employment or claim Universal Credit/Child Benefit.

Frequently asked questions

Is the allowance means-tested?

No. The pilot allowance is non-means-tested and set at NMA equivalence for the appropriate age band and region.

I live in Wales/Scotland/Northern Ireland—can I be included?

The pilot is England-only. A small number of cross-border cases may be supported if the responsible English local authority is selected—check the announcement and local guidance.

When will I actually receive payments?

From November 2025, assuming your council is selected. Councils are due to be notified late September 2025, with grant agreements in October.

My council already pays kinship allowances like foster care—what then?

If your council already pays at NMA level for eligible legal orders, it couldn’t apply to the pilot. Continue to use your local scheme.

Bottom line

The Kinship Allowance Pilot is a major step toward financial parity for kinship families—testing whether a stable, non-means-tested NMA-level allowance helps children remain within their family networks and thrive. As of 12 September 2025, we’re awaiting the DfE’s late-September announcement of the up to 10 selected councils. If you hold (or are applying for) an SGO or a ‘lives with’ CAO for a child who would otherwise be in care, prepare your paperwork now, bookmark your council’s kinship local offer, and watch for the go-live in November 2025.