Adopters Guide to Financial Support
Scope of this chapter
Financial assistance may be given to adoptive parents under certain circumstances by the Local Authority that places the child, where it is considered that an adoption would not otherwise be possible or practical
Financial support may be considered for the following circumstances.
- Where the child has a strong and important relationship with the carers before the adoption order is made. This may apply to the child’s current foster carers or relatives or friends;
- To enable siblings and other children to be placed together;
- To meet the special needs of the child. This applies where the child is identified as having an illness, disability, or emotional or behavioural difficulties resulting from past abuse or Neglect, and as a result the child requires a special degree of care necessitating extra expenditure;
- To facilitate the placement of “harder to place” children whose age, sex, or ethnic origin, mean that it may be difficult to find an adoptive family;
- To ensure the adoptive parents can look after the child. Financial support can be considered either before or after the Adoption Order is granted, at any point during the child’s childhood.
Support can be paid as:
- A series of lump sum payments for specific purposes, for example, an annual payment to help with the expenses of contact arrangements; or
- A regular weekly payment to meet an ongoing need
The circumstances in which financial support can be paid, the procedure for determining whether financial support should be provided and how much are all set out in the Adoption Support Regulations 2003 and 2005.
The law requires local authorities to consider the level of disposable income of the adopters when deciding any amount of financial support payable.
The disposable income is calculated using a standardised Means Test, drawn up by the Department for Children Schools and Families. The original Means Test form and guidance can be found and downloaded at Adoption and Special Guardianship Financial Support Means Test.
To complete the Means Test please see the Request for Adoption Financial Support and the Means Test of Income and Expenditure and for guidance on completing the form please see the Means Test of Income and Expenditure Guidance.
The means test will take the following into account.
- The adoptive parent’s financial resources such as significant income from investments, not including the value of their home, plus any tax credit or benefits which would be available to them if the child was placed;
- The amount required by the adoptive carers in respect of reasonable outgoings and commitments, such as housing and transport costs and daily living expenses. Outgoings in respect of the adoptive child are not included;
- Additional financial needs (for example where the child has a special diet or needs replacement bedding) as well as the child’s financial resources, such as a trust fund.
Where the adoptive family has disposable income, the level of that income affects the amount of support payable.
The amount to be paid will be reduced by 50 pence, for every £1 of disposable income. In other words, half of the family’s disposable income will be deducted before any financial payment is made. Please see the examples in Appendix 2: Examples.
Payments to adopters are based on the maintenance part of foster care allowances, minus child benefit. The rate of allowance is also dependent upon the age of the child. Foster care allowances are set annually by Manchester City Council. Please ask your supervising social worker for current rates.
This will depend on the child and your circumstances. Financial support is often paid for a time limited period, e.g. for 12 months or until a child goes to school.
The support may stop being paid if the annual review shows that you no longer qualify because your income and expenditure has changed.
Otherwise the support will stop:
- If the child ceases to have a permanent home with you;
- When the child ceases full-time education or training and commences employment;
- When the child qualifies for income support or jobseeker’s allowance in his own right;
- When the child reaches the age of 18, unless he continues in full time education or training, when it may continue until the end of the course;
- When any predetermined period expires;
- If the child dies.
The amount of financial support payable is reviewed annually based on updated information about adopters’ financial circumstances. Each year you will be sent an assessment form, which you should complete and return promptly so that any adjustments can be made.
If the form is not returned within 3 months of being requested financial support payments will automatically cease until you contact us again with updated information.
Adopters are required to notify the local authority immediately if;
- The family move;
- The child ceases to have his/her permanent home with the adoptive family;
- The child dies;
- There is a significant change in the financial circumstances or the child’s financial needs
If you did not need financial support at the time of matching but your or your child’s circumstances change, e.g. You lose your job or your child develops special needs as described previously, you can request financial support by contacting the ASSA (Adoption Support Service Advisor) who will undertake an assessment of your circumstances and arrange for the financial means test to be completed as necessary.
These are usually paid as a lump sum at the time of placement to help with purchasing essential items for the child.
Adopters who qualify for financial support will automatically be considered in all cases.
A setting up grant will also be considered if you are taking on the placement of an older child or a sibling group.
Adopters who live 25 miles away from the foster home can claim mileage but only for the cost of petrol used and this should be agreed as part of the Introduction plan. Further information will be given by the Family Placement Team Manager or Senior Practitioner during the Introductions Planning Meeting.
Where there is a plan for the child to have continued face to face contact with birth family members the local authority may meet the cost of reasonable expenses. The amount payable will be agreed with adopters during the planning process and will depend on the individual circumstances of the case.
The cost to adopters of lodging the Adoption Application with the court may be met by the local authority on request via the Family Placement Social Worker.
Reasonable legal expenses may be met if the application to adopt is being contested by the birth family or there are other special circumstances. Your Family Placement Social Worker will advise you if legal representation is necessary and will ensure that payment of legal fees is considered by the Adoption Panel.
Financial support paid to adoptive families by local authorities is exempt from tax and will be disregarded for the purposes of determining eligibility to tax credits.
It will also be disregarded in calculating income for the purpose of income related benefits (Income Support, Jobseeker’s Allowance, Housing Benefit and Council Tax Benefit), although it will be offset against the applicable premium in respect of that child or young person (and where applicable to him any amount by way of a disabled child premium).
Child Benefit is a universal payment for all people who are bringing up children. It is not income related or means tested.
You should apply for Child Benefit as soon as a child is placed with you for adoption. Child Benefit can usually be paid from the Monday following the date the child is placed with prospective adopters irrespective of whether financial support is being paid.
Child tax credit is a means tested allowance for parents, including adoptive parents, of children or young people still in full time education. Although entitlement to Child Tax Credit is subject to income, it goes to more families than previous systems of support. Those families with household incomes of up to around £55,000 (2010-2011) are entitled to a minimum level of additional support although those with lower incomes receive a higher level of support.
Working tax credit is designed to help people on low incomes who work 16 hours per week or more whether employed or self-employed. It can include an element to help parents who are working and spending money on child care. The amount payable depends on income and circumstances. Those adopting children are eligible to apply.
There is a single claim form covering both the new tax credits. Claims can be made online on the HM Revenue and Customs website.
The Government has made a commitment to helping working parents who adopt children. Rights to leave and pay for adoptive parents have been introduced for employees.
Adoption leave and pay is available to employed people who adopt a child to allow them to take paid time off work when their new child starts to live with them. If in a couple, the couple can decide which of them will take the adoption leave and pay. Paternity leave and pay may be available for the other member of the couple, or an adopter’s partner.
Adoption and paternity leave are available whether a child is adopted from within the UK or from overseas.
Adopters are entitled to up to 26 weeks’ ordinary adoption leave followed immediately by up to 26 weeks’ additional adoption leave – a total of up to 52 weeks’ leave.
Ordinary adoption leave is normally paid leave. During their adoption leave, most adopters are entitled to Statutory Adoption Pay (SAP) from their employers. Statutory Adoption Pay is paid by employers for up to 39 weeks.
Additional adoption leave is usually paid although an adopter may have contractual rights to pay during his period of additional adoption leave.
Employees are entitled to the benefit of their normal terms and conditions of employment, except for terms relating to wages or salary (unless their contract of employment provides otherwise), throughout their 26 week ordinary adoption leave period.
During additional adoption leave, the employment contract continues and some contractual benefits and obligations remain in force, for example compensation in the event of redundancy and notice periods.
Following the placement of a child for adoption, the rights to paternity leave and pay give eligible employees the right to take paid leave to care for their new child or support the adopter.
Eligible employees are entitled to choose to take either one week or two consecutive weeks’ paid paternity leave (not odd days).
During their paternity leave, most employees are entitled to Statutory Paternity Pay (SPP) from their employers.
Statutory Paternity Pay is paid by employers for either one or two consecutive weeks as the employee has chosen. The rate of Statutory Paternity Pay is the same as the standard rate of Statutory Maternity Pay.
A right for parents or young or disabled children to request flexible working has been introduced. Eligible employees who are parents of children aged under six, or of disabled children aged under 18, have the right to apply to work flexibly. Their employers have a duty to consider such requests seriously.
When a match is proposed between prospective adopters and a child, adopters should be informed whether or not the child is eligible for financial assistance.
During the initial assessment, prospective adopters should discuss their financial situation with their Supervising Social Worker, who will advise whether or not an application for financial assistance may be appropriate. The supervising social worker will also be able to advise whether adopters should apply for any other sources of income from the Benefits and Tax Credit systems.
Financial support paid to adoptive parents cannot duplicate any payment to which adopters would be entitled, under the tax and benefit system. If you are unsure what benefits you are entitled to please discuss this with your supervising social worker.
In order to apply for financial assistance in respect of the child, adopters should complete the application form Request for Adoption Financial Support and the Means Test of Income and Expenditure and provide supporting evidence, for all the items entered on the form.
Adopters should be aware that they are legally obliged to provide full details of their income and expenditure, when applying for adoption financial support and for the reviews of their entitlement to this support. If prospective adopters refuse to provide the required documentation they may no longer be considered entitled to adoption financial support.
Your supervising social worker will discuss with you the length of time that you may need financial support and they will then make a recommendation regarding the period of time for which financial support will be granted.
If you are entitled to financial assistance in respect of the child/children, your supervising social worker will include it in the Adoption Support Plan along with the details of the length of time, etc. The support plan must be agreed by the prospective adopter(s) and this is recorded in the Adoption Placement Report.
The Adoption Support Plan will then be presented to the Adoption Panel for a match between yourselves and the child.
The panel recommends the match including the amount of financial support. This then has to be agreed by the Agency Decision Maker.
If financial support is agreed you will be notified of this in writing.
The notification will inform you of the amount to be paid and how you will receive the money. It will also inform when the payments will be made and the duration of the financial support.
If there are any conditions attached to the payments, the notification will advise how and when the condition(s) must be met and the consequences of not complying.
Your supervising social worker will then send you the Adoption Financial Support Agreement Adoption Document 8 and ask you to sign it. This must be completed and returned before financial support can start.
Adoption financial support usually starts from the date the child is placed or moves in with you and you are normally paid in arrears. You can also claim Child Benefit from this date.
If you have been awarded adoption financial support, it will not be paid indefinitely and there will be a time limit on the duration of the support. You will be informed of this when the financial support is agreed. You will also be notified 28 days in advance that the financial support is due to cease.
Should you or your child’s circumstances change to such an extent that you feel it necessary for further financial support, then you may apply for a new Assessment of Need by contacting your supervising social worker or Adoption Support Services Advisor. Any financial support that is recommended as a result of an assessed need, will be dealt with in the same way.
Entitlements to financial support are reviewed annually, using the same means-tested procedure.
Each year you will be sent a Request for Adoption Financial Support form. This should be completed and returned within 28 days, with all the appropriate evidence. You will then be notified in writing of the outcome of the review.
Reviews may also take place when there has been a change in the child’s or adoptive parent’s circumstances.
Adopters are legally required to notify their local authority immediately if:
- The family moves;
- The child ceases to have a permanent home with the adoptive family;
- The child dies;
- There is a significant change in their financial circumstances.
How Disposable Income Affects the Amount of Support
Example 1
Alice is a single adopter who has no disposable income, according to the means-tested calculation.
Alice is hoping to adopt Jasmine aged 7 who is eligible for adoption financial support. Jasmine is an older child and is going to continue having contact with her grandmother.
The level of financial assistance for a child of Jasmine’s age (based on the maintenance part of the foster care allowance rate for a 7 year old child, minus the rate of child benefit) is £232.56 per month.
Alice will receive the full £232.56 adoption financial support because she has no disposable income.
Example 2
Janet and Neil are hoping to adopt Daniel aged 4 and Oliver aged 2. According to the means-tested calculation, Janet and Neil have a disposable income of £400 per month.
Daniel and Oliver are siblings and Oliver has special needs and as such, they are eligible for financial assistance.
The level of financial assistance for two children of Daniel and Oliver’s age is £454.56 per month.
Janet and Neil will receive £254.56 adoption financial support, because half of their disposable income (£200) is deducted from the above amount.
Last Updated: October 17, 2023
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