Why Kinship Care Is Underfunded in the UK

Kinship care—where children are placed with relatives or close family friends—offers a unique blend of familiarity and stability that statutory foster care cannot always match. Yet despite its proven benefits, kinship carers in the UK often face financial gaps that limit their capacity to provide long‑term support. This article explores the funding challenges, their origins, and the real‑world impact on children and families across the country, including key hubs such as London, Birmingham, and Manchester.

What is Kinship Care?

Kinship care is a form of child placement that keeps a child within their extended family network. The child may stay with a grandparent, aunt, uncle, or close family friend, rather than being placed in a non‑family foster home. The arrangement is typically informal but can be formalised through a court order or a care plan.

Who benefits from Kinship Care?

Children benefit from the emotional continuity and cultural familiarity that kinship homes provide. Carers—often older relatives or long‑time family friends—bring life experience and established relationships that support a child’s sense of identity. For families, kinship care can reduce the disruption that comes with moving to a distant foster home and can preserve family bonds that might otherwise be lost.

Benefits and Responsibilities of Kinship Carers

Kinship carers share many of the same responsibilities as statutory foster carers, including providing a safe environment, meeting the child’s educational and health needs, and maintaining open communication with child‑minding professionals. However, kinship carers often have additional emotional responsibilities, such as navigating family dynamics and balancing the needs of their own children or grandchildren.

Key Responsibilities

Carers must:

• Ensure the child’s safety and well‑being at all times.
• Support the child’s education, attending school meetings and helping with homework.
• Maintain a consistent routine that respects the child’s cultural and religious background.
• Collaborate with social workers, health professionals, and the child’s birth family to keep everyone informed.

Support Provided to Kinship Carers

According to official UK fostering guidance and local authority policies, kinship carers receive support through:

• Regular training sessions covering child protection, health, and welfare.
• Case management meetings with social workers to discuss the child’s progress.
• Access to respite services when carers need a break.
• Information on how to navigate the legal and administrative aspects of care.

While this support is crucial, the financial component often falls short of covering the true cost of caring for a child in a kinship setting.

Funding Landscape for Kinship Care

Funding for kinship care in the UK is primarily derived from local authority budgets, national government allocations, and, in some cases, independent fostering agencies. The structure of these payments varies significantly across regions.

Current Funding Mechanisms

Local authorities are required to provide a basic allowance to kinship carers, which is designed to cover the child’s essential needs. In addition, carers may receive a skill‑based payment for additional responsibilities such as caring for a child with special educational needs or health conditions. The exact nature of these payments—whether they are flat rates, per‑child allowances, or a combination of both—depends on the local authority’s policy and the child’s specific circumstances.

Some authorities also offer additional support for carers who manage multiple children or who provide care for long periods. However, these supplementary funds are often limited and subject to budget constraints, leaving many carers to cover costs out of pocket.

Comparison: Local Authority vs Independent Agencies

Local authorities typically provide a more predictable, though sometimes modest, payment structure that aligns with national guidelines. Independent fostering agencies, on the other hand, may offer higher or more flexible payments, but these are often tied to contractual agreements and may include additional fees for services such as training and supervision.

Both models aim to support carers, yet the variation in payment levels and the lack of a standardized national framework means that carers in different parts of the country can experience vastly different financial realities. This disparity contributes to the overall underfunding of kinship care across the UK.

Challenges Leading to Underfunding

Several factors combine to create a funding shortfall for kinship care. These challenges are rooted in policy, economics, and the evolving needs of children in care.

Policy Gaps and Historical Context

Historically, the UK’s child protection legislation has focused on statutory foster care as the primary solution for children who cannot remain with their birth families. As a result, the policy framework for kinship care has been less developed, leading to fragmented funding streams and inconsistent support mechanisms. While recent policy reviews have highlighted the importance of kinship care, the translation of these insights into concrete financial resources has been slow.

Economic Pressures and Budget Constraints

Local authorities operate within tight budgets, and the allocation of funds to child welfare competes with other pressing community needs such as housing, health, and education. When budgets shrink, kinship care often falls lower on the priority list because it is perceived as a supplementary service rather than a core function. This perception is compounded by the fact that many kinship carers are not registered with a formal agency, making it harder for authorities to track and allocate resources effectively.

Additionally, the cost of providing care—especially for children with complex needs—can far exceed the basic allowance. Carers may have to purchase specialised equipment, cover travel expenses, or pay for additional health services, all of which are rarely fully reimbursed.

Impact on Children and Families

The financial gaps in kinship care have tangible consequences for the children and families involved. When carers are under‑paid, the quality and continuity of care can suffer, potentially undermining the very benefits that kinship arrangements are meant to deliver.

Stability and Continuity of Care

Children placed in kinship homes often enjoy greater emotional stability, but this advantage can be eroded if carers lack the resources to maintain a consistent routine. For example, insufficient funding may limit the ability to provide a suitable learning environment or to keep the child’s school supplies up to date. Over time, these small gaps can accumulate, affecting the child’s academic performance and emotional well‑being.

Long‑Term Outcomes for Children in Kinship Homes

Research indicates that children in kinship care generally fare better in terms of attachment security and cultural identity than those placed in non‑family foster homes. However, when financial support is inadequate, the benefits can be muted. Children may experience increased anxiety, reduced participation in extracurricular activities, and difficulties accessing specialist services, all of which can impede their long‑term development.

What Can Be Done?

Addressing the underfunding of kinship care requires coordinated action from policymakers, local authorities, and the wider community. Below are some strategic avenues that can help bridge the funding gap.

Advocacy and Policy Reform

Stakeholders—including kinship carers, child welfare organisations, and advocacy groups—must push for clearer, more consistent national funding guidelines. By lobbying for a dedicated kinship care budget line, the government can ensure that carers receive the financial support they need without being caught in the shifting priorities of local budgets.

Moreover, the introduction of a national standard for kinship payment rates could reduce the current regional disparities. This standard would be informed by research into the true cost of care, ensuring that carers are compensated fairly for the responsibilities they shoulder.

Enhancing Support for Kinship Carers

Local authorities can expand the range of services available to kinship carers, such as:

• In‑house respite care to give carers a guaranteed break.
• Financial planning workshops to help carers manage out‑of‑pocket expenses.
• Peer‑support groups that enable carers to share resources and advice.
• Targeted training for carers of children with special needs, ensuring they have the skills and confidence to provide appropriate care.

By investing in these support mechanisms, authorities can reduce the financial burden on carers and improve the overall quality of care for children.

Common Questions About Kinship Care Funding

FAQs

Q1: How does a kinship carer receive payment?

A1: Payments are typically made through the local authority’s child welfare budget. Carers must register with the authority and submit a claim form detailing the child’s needs and the support required. The payment structure usually includes a basic allowance plus any applicable skill‑based or additional support.

Q2: Are kinship carers eligible for the same training as statutory foster carers?

A2: Yes, kinship carers receive training aligned with official UK fostering guidance. The training covers child protection, health, education, and specific needs management, ensuring that carers are equipped to meet the child’s requirements.

Q3: Can a kinship carer apply for additional funding if the child has special educational needs?

A3: Carers can apply for extra support by submitting a detailed case plan that outlines the child’s educational and health needs. Local authorities review these plans and may provide additional allowances or resources accordingly.

Q4: What happens if a local authority cannot afford to fund a kinship placement?

A4: In such cases, the authority may seek external funding from charitable trusts or partner with independent fostering agencies that can offer supplementary support. However, the lack of guaranteed funding remains a significant challenge for many carers.

Q5: Are there regional differences in the amount of support provided?

A5: Yes, the level of support can vary between local authorities. While national guidelines set minimum standards, the actual payment and services offered may differ based on local budget allocations and policy priorities.

For further reading on kinship care challenges, you may find the following internal resources helpful:

• The Latest Foster Care Shortage in the UK Explained
• Local Authority vs Independent Fostering Agency – Which Is Right for You?
• Fostering Allowances 2025/26 Explained – London, South East and Rest of England

Conclusion

Kinship care remains a vital lifeline for many children across the UK, offering them a sense of belonging and stability that statutory foster care cannot always replicate. Yet the persistent underfunding of this care model undermines its effectiveness and places undue strain on carers. By recognising the unique challenges of kinship care, standardising funding mechanisms, and enhancing support services, policymakers and local authorities can ensure that kinship carers receive the resources they need to provide safe, nurturing homes for children in need.