Grandparents raising grandchildren — your benefits, money and housing rights

REVIEWED BY: Sean McNamara on 2026-08-31

The financial picture for kinship carers

Raising a grandchild (or other relative's child) is emotionally demanding and financially challenging. This page explains what support you may be entitled to.

Welfare benefits

| Benefit | Who it's for | Notes | |---------|-------------|-------| | Child Benefit | The person with main day-to-day care of the child | Paid to the kinship carer if the child lives with you | | Child Tax Credit / Universal Credit child element | Low-income families with children | If the child lives with you and you're responsible, claim it | | Guardian's Allowance | Someone raising a child whose parent has died | £21.40/wk, paid on top of Child Benefit | | Carer's Allowance | Someone caring for a disabled child/person for 35+ hrs/wk | £81.90/wk (2026 rate) | | Housing Benefit / UC housing element | For rent | If the child lives with you, this can help with larger accommodation |

Children with additional needs

Disability Living Allowance (child) — if the child has a disability, this is not means-tested. Applying is straightforward with GP/school evidence.
If the child has an EHCP (education/health/care plan), you can get SEND support (see our SEN/EHCP guide).

The challenge of benefits

Tax credits historically used to operate a "two-child limit" — kinship children are often exempt if you can show you're raising them as a kinship arrangement.
Evidence needed: the child's birth certificate showing their relationship to you, proof they live with you (a letter from the school, GP, or a court order).
If you have a special guardianship order, you may get a kinship allowance from the local authority (see our SGO allowance guide).

Housing

If you need a bigger home to accommodate the child, apply for a transfer or additional bedroom on your council housing application.
The council must treat a kinship carer who takes on a child as a housing priority — make sure you tell them.
See our housing page for the full route.

Council Tax

Single-person discount ends when a child (or other adult) lives with you.
Yet some councils offer a discretionary discount for kinship/guardianship placements — ask.

Practical next steps

1. Apply for Child Benefit first — it gates the widest range of support. 2. Tell Universal Credit / tax credits that you now have a child in your care. 3. Ask the local authority for a kinship needs assessment (you're entitled to it). 4. Take the child's birth certificate and your kinship evidence to each claim. 5. If you hold an SGO, formalise the kinship allowance with the council.

Official links

Child Benefit: https://www.gov.uk/child-benefit
Guardian's Allowance: https://www.gov.uk/guardians-allowance
Carer's Allowance: https://www.gov.uk/carers-allowance
Kinship (charity): https://kinship.org.uk

This page is general information, not legal advice. Benefit levels change — always verify at gov.uk. YourFamilyCase.co.uk is an independent directory and is not affiliated with gov.uk.

Content verified against the official HMCTS court directory, gov.uk forms and fees pages, and the professional body registers (SRA, FMC, Bar Council). Last reviewed September 2026.