Family Rights Group | Kinship carers’ Forum

I have been reading on all the Facebook kinship support groups that everyone is having their child tax credit element deducted from their sgo allowance. This is really worrying me. My next review is July. Is this right ? Are all LA’s doing this ? How can it be right.

I am sure Suzie will be along soon to give you a better idea, but in your position, I would be contacting my local councillor for support and possible explanation, and in the absence of a satisfactory one, I would be asking my MP to get involved. Sounds like one local authority may have come up with it as a way of saving money, and all the others are latching on. Whether it's a legitimate move or not will possibly end up with someone taking the matter to judicial review unless enough MP's get involved and the government issues revised 'guidance' to local authorities.

As I remember the regulations when introduced, benefits were to be excluded from the calculation because the idea was not to give out with one hand and take it back with the other, but there have been a couple of updates to the guidance to local authorities since then, so it's possible it's changed.

I believe it comes under the Department of Education, but again could be wrong, but definitely one that MP's could sort out if they were so minded. If there are Facebook Groups, it might pay to use them to galvanise everyone affected to write to their MP and to start a public campaign.

I can't help personally as I am not affected. Hopefully Suzie can provide better advise.

Dear Helsbells

Thank you for your post and welcome to the discussion board. My name is Suzie, I am an online adviser and will be responding to you today.

You are concerned that at your forthcoming Special Guardianship (SGO) Allowance Review you may be deducted payments linked to child tax credit.

To clarify, Children’s Services take into account benefit and tax credit entitlement when assessing what financial support they will provide by way of a special guardianship allowance.

When a special guardian initially receives an SGO allowance they will not be in receipt of child tax credit. When one is granted, they obtain parental responsibility and can claim child tax credit if eligible.

When a review of an SGO allowance takes place subsequently, there will have been a change in finances due to the claiming of child tax credits. The local authority will then take this into consideration.

However, when a claim is made for child tax credit, it does not work the other way round. The SGO allowance is not taken into consideration when benefits are calculated.

The following allowances from children’s services are ignored when Child Tax Credit is worked-out:

• Fostering allowances, child arrangement or residence order allowance, or special guardianship allowance.
• Any help you receive for a child in need under section 17 of the Children Act 1989.

I have added a link HERE to an organisation called Turn2Us. If the local authority reduces your allowance and you are struggling financially, you may find them helpful. They provide information and advice regarding benefits and have a helpful benefits calculator facility you can use to work out whether you may be entitled to further support.

I hope you find this information helpful. Please do contact us again should you need to. Details below:
- post again here.
- Submit a web enquiry.
- Start a webchat, Monday and Wednesday 2pm-4pm.
- Call our free and confidential advice line on 0808 801 0366, Monday to Friday (excluding bank holidays) 9:30am-3pm.
More information and links to our services can be found on our website FRG.org.uk


Best wishes, Suzie