Kinship carers receive financial support in government pilot scheme

Published: 27 February 2026. The English Chronicle Desk. The English Chronicle Online.

Grandparents and other family members providing full-time care for relatives’ children will soon receive guaranteed financial support, following the government’s announcement of a new pilot scheme. The plan is designed to recognise the invaluable role kinship carers play in safeguarding children while preventing the need for foster or residential placements. Charities and campaigners described the scheme as historic, emphasising its potential to transform the lives of thousands of children currently in kinship care across England.

Kinship carers include grandparents, aunts, uncles, older siblings, and close family friends who step in when a child loses their birth parents due to illness, death, imprisonment, or court orders. These carers often face significant financial and personal sacrifices, with many giving up employment or enduring low incomes to meet children’s needs. Advocates have argued for more than twenty years that these contributions deserve formal financial recognition, highlighting the billions saved annually by the state through kinship arrangements.

According to recent statistics, approximately 132,000 children in England are cared for under kinship arrangements, yet the majority of carers receive minimal or no state financial support. Many kinship families report heightened risks of poverty, as they shoulder the costs of housing, food, education, and healthcare for children without adequate assistance. The lack of recognition has left many carers feeling undervalued, often described as a “cheap option” compared to traditional foster care.

The new trial, which launched last Friday, will provide participating kinship carers with allowances comparable to those received by foster carers, ranging from £170 to £299 per week depending on the child’s age and location. For example, a carer living outside London raising a fifteen-year-old could expect to receive £13,832 annually starting this April. The allowance will not be means-tested and will not affect entitlement to universal credit or child benefit payments, providing carers with vital financial security.

Children’s Minister Josh MacAlister highlighted the scheme as a long-overdue acknowledgment of kinship carers’ dedication. He said, “As a country we owe kinship carers our thanks and our support, and the new financial allowance recognises the vital role they play ensuring families can stay together.” He emphasised that the government is committed to supporting carers who provide children with stability, love, and opportunity for a strong start in life.

MacAlister’s initiative stems from proposals he outlined in an independent review of children’s social care for the previous Conservative government in 2022, well before he became a Labour MP. His review emphasised the cost-effectiveness and social benefits of kinship care, noting that children in these arrangements typically experience improved mental health, educational attainment, and future employment outcomes compared with peers in foster or residential care.

Academic research supports these findings, showing that children in kinship care maintain stronger family connections, a sense of identity, and cultural continuity. The financial support will help families provide stable homes without facing further economic disadvantage, ensuring that children benefit from consistent parenting within familiar surroundings.

Lucy Peake, chief executive of the charity Kinship, described the scheme as potentially life-changing, though she noted the pilot currently covers only around 5,000 children. She urged the government to expand allowances rapidly to reach all kinship families across England. “Kinship carers hold our care system together, and the government must provide the right support to ensure they are not pushed into poverty for doing the right thing and keeping their family together,” Peake stated.

The Family Rights Group also welcomed the pilot as a groundbreaking initiative. Chief executive Cathy Ashley stressed the importance of making the program universal as soon as possible, saying, “We urge national and local government to build the fair, effective support system that children and families need.” Advocates emphasise that providing financial security to kinship carers reduces reliance on foster care and ensures that children remain within their family networks whenever possible.

The three-year trial will take place in seven council areas: Bexley in Greater London, Bolton, Newcastle upon Tyne, North East Lincolnshire, Medway in Kent, Thurrock in Essex, and Wiltshire. Each participating area will monitor the impact of financial support on children’s well-being, family stability, and the overall cost savings to social services. Officials hope the data collected will guide a nationwide rollout in the future.

For many carers, the pilot represents a recognition of long-standing contributions. Families who have sacrificed employment and financial stability to care for grandchildren or nieces and nephews now have a chance to receive consistent support. Kinship arrangements have long been celebrated for preserving children’s emotional well-being while reducing the pressure on overstretched social services.

Despite the pilot’s limited scope, campaigners remain optimistic. They argue that formalising financial support not only benefits children but also strengthens communities and protects vulnerable families. Kinship care has historically been undervalued, with carers often facing administrative obstacles and inconsistent funding. By aligning allowances with foster care standards, the government signals a commitment to equity and child-centered social policy.

The trial also reflects a broader effort to reform children’s social care across England. Ministers have acknowledged the pressures on the existing system and emphasised preventative strategies that reduce unnecessary separation of children from family networks. Kinship care is seen as a cornerstone of these reforms, promoting stable, loving homes while avoiding the trauma that often accompanies foster or residential placements.

Public response has been largely positive, with many viewing the initiative as overdue recognition for carers who have shouldered immense responsibility. Charities anticipate that, if extended nationally, the program could lift tens of thousands of families out of financial uncertainty while ensuring that children thrive in familiar and supportive environments. Social workers and local authorities are now working closely with participating families to evaluate practical implementation and refine support mechanisms during the three-year trial period.

For children growing up in kinship care, financial support may translate into more opportunities for education, extracurricular activities, and healthy development. Carers can invest in resources that directly impact children’s well-being, from school supplies to nutrition, without fear of financial strain. Long-term studies suggest that stable family placements contribute to reduced behavioural challenges and better mental health outcomes, reinforcing the importance of targeted support.

Ultimately, the pilot scheme represents a landmark step toward recognising kinship carers as essential contributors to child welfare. By addressing long-standing inequities, the government hopes to foster greater social cohesion and improve outcomes for children who might otherwise face upheaval and instability. Advocates remain focused on securing nationwide coverage, believing that the principles demonstrated in the trial should be standard practice across England.

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