If you’re a relative or friend stepping up for a child, should you apply to be a foster carer—or seek a kinship route such as a Special Guardianship Order (SGO) or Child Arrangements Order (CAO)? The answer shapes who has parental responsibility, the assessment you go through, the support and money you can receive, and what happens after a young person turns 18. This 2025 guide sets out the practical differences—plainly and with current policy updates—so you can choose the right path.
1) Why this question matters more in 2025
England now has a National Kinship Care Strategy and, for the first time, a government-funded Kinship Allowance Pilot. The pilot (expected to run in up to 10 local authorities) pays eligible kinship carers an allowance equivalent to the fostering National Minimum Allowance (NMA). Eligibility is focused on special guardians and some CAO carers where the child would otherwise be in care. Roll-out details and LA selection are being handled by the Department for Education (DfE).
At the same time, foster carer allowances have risen again: the 2025/26 NMA applies from 6 April 2025 and varies by age and region (London, South East, Rest of England).
2) The umbrella term “kinship care”—and the main legal routes
“Kinship care” covers several arrangements where a child is raised by relatives or family friends. The big routes to know in England are:
- Kinship foster care (also called “connected persons” fostering): The child is looked after by the local authority. You are approved as a foster carer (often with emergency temporary approval first) and receive fostering allowances while the child remains looked after.
- Special Guardianship Order (SGO): A family court order giving you parental responsibility and a long-term home for the child until 18; parents retain PR but you can exercise it to the exclusion of others on most decisions. The child is no longer looked after once the SGO is made.
- Child Arrangements Order (CAO – “lives with”): Grants a child a home with you and usually shared parental responsibility (unlike the enhanced PR under an SGO). Support is more limited than fostering; the new pilot may cover some CAO carers where the child would otherwise be in care.
- Private fostering: A private arrangement (not close relatives) lasting 28+ days that must be notified to the council; it is not the same as local-authority fostering and does not give you PR.
3) Who has parental responsibility (PR) and who “decides”?
- Fostering (including kinship foster care): The local authority shares PR (or holds it under a care order), and many major decisions require their agreement. Carers work within delegated authority. Ofsted regulates the fostering service that assesses and supports you (not individual carers).
- SGO: You have PR and can make most decisions even where others hold PR, providing stability without the full legal severance of adoption. The local authority must assess support needs and may provide special guardianship support, including financial support.
- CAO: You provide the home and usually share PR with parents; your authority is not as extensive as under an SGO.
- Private fostering: No PR is transferred; the arrangement is overseen by children’s services once notified.
4) Assessment pathways & timescales
Kinship foster care (connected persons):
If a child needs to move to you urgently, the council may use Regulation 24 to give temporary approval as a foster carer for up to 16 weeks while a full fostering assessment is completed; this can be extended (often up to 8 more weeks) in limited circumstances. Final, full approval follows a Form F assessment and fostering panel.
Special Guardianship:
You (or the LA within care proceedings) apply to the family court. The local authority completes an SGO assessment and a support plan setting out services and any financial support.
Child Arrangements Order:
Usually a quicker, private-law route than SGO in straightforward cases, but confers less long-term legal security and support.
5) Money in 2025: allowances, tax and what’s changing
Fostering (including kinship foster care)
- National Minimum Allowance (NMA) 2025/26 (weekly) from 6 April 2025 (examples):
London: £198 (0–2), £201 (3–4), £225 (5–10), £257 (11–15), £299 (16–17). South East and Rest of England differ slightly. Many councils/IFAs also pay fees on top of the NMA. - Tax: Fostering income is covered by HMRC’s Qualifying Care Relief (QCR), a simplified scheme that means many carers pay little or no tax on fostering payments. (Rates are updated each tax year; see the 2025 HMRC helpsheet.)
Special Guardianship (SGO) & CAO
- Special guardianship allowances are means-tested/discretionary and set by local authorities via the SGO support plan; rules differ by area. Payments under SGO/CAO are generally not taxable as trading income (QCR is mainly a fostering scheme).
- Kinship Allowance Pilot (England): From 2025, up to 10 LAs will pay eligible SGO and some CAO carers an allowance equivalent to the fostering NMA, aimed at children who would otherwise be in care. Details and evaluation are being run by DfE; LA selection followed a June 2025 application window.
- Other benefits: Some kinship carers may claim benefits like Child Benefit or Universal Credit depending on legal status and circumstances. A small number with orphaned children may receive Guardian’s Allowance on top of Child Benefit.
Note on devolved nations: Allowance frameworks differ in Wales, Scotland and Northern Ireland (e.g., Wales announced a 2.6% uplift for 2025/26; Scotland uses a recommended kinship/fostering allowance framework). Always check your nation’s current rates.
6) Support, regulation and oversight
- Fostering services (LAs and IFAs) are regulated and inspected by Ofsted under the Social Care Common Inspection Framework. Ofsted inspects the agency/service, not individual carers.
- SGO/CAO kinship care is not regulated like fostering services; support is governed by statutory guidance on kinship and special guardianship. Updated kinship guidance (Oct 2024) clarifies local authority duties to identify, assess and support kinship families.
7) After 18: “Staying Put” vs leaving-care style support
- Foster care: Young people can remain with former foster carers under Staying Put—typically until 21 (or 25 if in education/training). Local authorities must support and fund these arrangements.
- SGO/CAO: There’s no “Staying Put” scheme, but young people who were looked after immediately before the SGO may qualify for advice and assistance as care leavers under the Children Act 1989 framework.
8) Which route is “best”? A practical way to decide
Choose kinship foster care (connected persons → full fostering approval) when:
- The child needs immediate protection, court proceedings are ongoing, or reunification/permanence options aren’t yet settled.
- You’re comfortable being supported and supervised by a fostering service, with training, allowances and Ofsted-regulated oversight.
Good fit if: you anticipate short- to medium-term uncertainty, or complex needs that benefit from agency support.
Choose SGO when:
- Everyone agrees the child should live with you long-term outside care proceedings.
- You want clear decision-making authority and to reduce professional intrusion, with a bespoke SGO support plan.
Trade-offs: Allowances are means-tested and, outside pilot LAs, usually lower and less uniform than fostering payments.
Choose CAO (lives-with) when:
- The situation is stable and you don’t need the enhanced PR or support of an SGO; legal and assessment routes may be lighter.
Trade-offs: Less support than SGO/fostering; pilot allowances may help only where the child would otherwise be in care.
Private fostering only applies if you’re not a close relative and the arrangement is private for 28+ days; you must notify the council. It’s not a route to PR or fostering-level support.
9) Money snapshot (England, 2025/26)
- Fostering NMA (weekly, examples): London £198–£299 depending on age; different rates apply in the South East and Rest of England. Many carers also receive fees on top. Tax: QCR helps many foster carers pay little/no tax on fostering income.
- SGO/CAO kinship: Means-tested local allowances set via the SGO support plan; Kinship Allowance Pilot (up to 10 LAs) will pay NMA-equivalent to eligible SGO and some CAO carers where the child would otherwise be in care.
10) Real-world scenarios
- Emergency with grandma while court decides: Start as Regulation 24 temporary kinship foster care (up to 16 weeks, extendable in limited cases) → full fostering approval if child remains looked after; later, if permanence with grandma is clear, consider an SGO to exit care.
- Long-term placement with aunt, stable family ties: Seek SGO to secure parental responsibility and reduce professional intrusion; explore the pilot if in a participating LA and the child would otherwise be in care.
- Teen close to 18 with existing foster carers: Plan a Staying Put arrangement to 21 (or 25 if in education/training) for continuity and housing stability.
11) Pros & cons at a glance
Kinship foster care (connected persons → fostering):
Pros: Structured support, training, set allowances, access to Staying Put; clear safeguarding.
Cons: Greater oversight, records and visits; PR shared with the local authority; not always the final permanence plan.
Special Guardianship:
Pros: Long-term stability and strong PR; the child is not looked after; tailored support plan.
Cons: Allowances are means-tested and vary; no Staying Put; you’ll manage more independently (which some families prefer).
Child Arrangements Order:
Pros: Simpler in many cases; shared PR; suits low-dispute, stable setups.
Cons: Least structured support; pilot help only in specific “otherwise in care” cases.
12) What to do next (step-by-step)
- Get early advice from your local authority’s kinship/fostering team—they can explain the immediate safest legal route and whether Reg 24 applies.
- Ask about money and support in writing:
- If fostering: request a breakdown of NMA + any fees, and training/support on offer.
- If SGO/CAO: request an SGO/kinship support plan, how allowances are calculated, and whether your area expects to join the 2025 pilot.
- Think longer-term: If the plan is permanence with you, talk to the social worker and (if in proceedings) your solicitor about SGO timing and contact arrangements.
- For teens in foster care: Start Staying Put conversations by 16–17 to avoid last-minute housing stress.
- Tax & benefits: If you foster, read HMRC HS236 on QCR before your first Self Assessment; if you’re an SGO/CAO carer, check your benefit entitlements and whether any payments are taxable (most SGO/CAO allowances aren’t treated as trading income).
13) Key 2025 facts to remember
- Kinship Allowance Pilot (England): up to 10 LAs, paying NMA-equivalent to eligible SGO/CAO carers where the child would otherwise be in care.
- Fostering NMA 2025/26: new rates from 6 April 2025 by age and region.
- Reg 24 temporary approval: up to 16 weeks (with limited extension) while the full fostering assessment is completed.
- SGO PR: special guardians have overriding PR (parents keep PR but your decision generally prevails); child is not looked after after SGO is made.
- Staying Put: care leavers can stay with former foster carers to 21 (or 25 in education/training).
Final word
There isn’t a single “right” answer—there’s the right route for this child, in this family, at this moment. If the situation is uncertain or in court, kinship fostering offers structured support and funding while plans are made. If permanence with you is agreed, SGO often provides the stability and decision-making power families want—with 2025 bringing new pilot funding that may narrow the financial gap. Either way, get the assessment, money and support set out in writing—and keep an eye on your local authority’s participation in the pilot over the coming months.