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Seven local authorities selected for pilot scheme offering allowances to kinship carers

Date:9 MAR 2026
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The Government has announced that seven local authorities in England will participate in a pilot scheme testing guaranteed financial allowances for kinship carers, as part of a £126 million programme aimed at strengthening support for children living with relatives or family friends.

The initiative will operate in the local authority areas of Bexley, Bolton, Newcastle, North East Lincolnshire, Medway, Thurrock and Wiltshire.

Under the scheme, described as “Kinship Zones”, eligible kinship carers will receive financial support equivalent to the fostering allowance, recognising the additional costs involved when relatives or family friends take on responsibility for raising a child.

The Government said the pilot is expected to support around 5,000 children living in kinship arrangements and will run for up to three and a half years. Funding for the first two years has been confirmed, with further investment to be considered in a future spending review. Ministers have indicated that the programme will be used to inform possible national expansion.

Kinship care refers to arrangements in which children are raised by relatives or close family friends when their parents are unable to care for them. Advocates argue that keeping children within their extended family networks can provide greater stability while reducing pressure on the formal care system.

The pilot represents a significant step in the campaign by Kinship, which has been calling for kinship carers to receive financial support equivalent to that provided to foster carers through its #ValueOurLove campaign.

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In addition to the allowances, participating authorities will receive funding to develop earlier support for wider family networks, including informal kinship carers, with the aim of preventing children from entering the care system.

Alongside the pilot announcement, a report from the Government’s National Kinship Care Ambassador urged all local authorities to strengthen support for kinship families as part of their requirement to publish a local kinship care offer.

Lucy Peake, chief executive of Kinship, welcomed the pilot as an important step toward addressing what the charity describes as longstanding inequalities in financial support for kinship families. However, she warned that the scheme will initially reach only a small proportion of children in kinship care across England.

Peake said many carers struggle financially after unexpectedly taking on the care of relatives’ children, and that more comprehensive national reform is needed. She added that some kinship carers have expressed concerns about their ability to continue caring without additional support.

Campaigners argue that better financial support for kinship care could improve outcomes for children while also reducing public spending. Kinship has previously estimated that for every 100 children supported in well-resourced kinship placements rather than entering local authority care, the state could save around £4 million annually while increasing the children’s lifetime earnings.

The Government has said the findings from the pilot will help shape future policy on kinship care and determine whether the allowance model should be rolled out more widely.

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