Foster and kinship carers - Scottish Recommended Allowance: implementation review

Executive Summary

Background

In 2019, the Scottish Government committed to work with the Convention of Scottish Local Authorities (COSLA) to introduce a Scottish Recommended Allowance (SRA) for foster and kinship carers. The SRA was introduced in August 2023 and marked the first time a set rate, which all local authorities must pay to foster and kinship carers, was introduced across Scotland.

The final agreed weekly allowances, which were backdated to 1 April 2023, were:

• For children aged 0 to 4 year-olds - £168.31
• For children aged 5 to 10 year-olds - £195.81
• For children aged 11 to 15 year-olds - £195.81
• For young people aged 16-years-old and over - £268.41

This report provides the findings from independent research that was commissioned by the Scottish Government to collect data on whether the implementation of the SRA had achieved (or was starting to achieve) its policy intent. Specifically, the research sought to explore the extent to which the SRA was bringing consistency and transparency to the allowances paid to foster and kinship carers, and to explore if caregivers, no matter where they lived, were receiving at least the SRA.

Methods, Sample and Caveats

The research began in October 2024, with data collection to inform the review carried out over a four-month period between December 2024 and March 2025. A mixed methods approach was used which included:

• an online survey of all local authorities in Scotland;
• an online survey and interviews/discussions with independent fostering agencies (IFAs)^[1];
• interviews with third sector organisations (TSOs) and other stakeholders with an interest in the SRA review;
• online surveys of foster and kinship carers living in Scotland, with separate surveys developed for each type of carer; and
• follow-up in-depth interviews with a sample of foster and kinship carers to explore their experiences of the SRA in more detail.

A Lived Experience Advisory Panel (LEAP) made up of current carers was also established to help guide the development of data collection tools and to provide advice on engaging with carers at various stages in the project.

The professional stakeholder surveys attracted variable levels of response (with 30 out of Scotland’s 32 local authorities taking part but fewer than 10 IFAs contributing either via survey or interview). The carers’ surveys attracted a strong response, with 271 carers taking part (137 foster carers and 134 kinship carers) and 40 providing feedback via in-depth interviews (with equal numbers of foster and kinship participants). It is not possible to know what proportion of all carers were represented, however, as the full population of foster and kinship carers in Scotland is not known (especially when considering that some registered foster carers will currently be providing a placement and be in receipt of the SRA while others will not, and some kinship carers will be eligible for the SRA and some will not). While reasonable regional coverage was also achieved (among both professional stakeholders and carers) not all local authority areas were represented and so the findings cannot be considered as providing comprehensive geographical coverage.

There were also some gaps and contradictions in the data provided by local authorities which may affect the accuracy of data presented in this report, including some of the comparisons that are made between allowances paid to foster and kinship carers pre- and post-SRA.

Main Findings

Payment and receipt of the SRA

All of the 30 local authorities who responded to the survey reported that they were currently paying at least the SRA across their entire area to foster carers providing long term, permanent, interim, short break and short-term foster placements for all age bands. Similarly, all but one local authority said that they were paying at least the SRA across their entire local authority area for formal kinship carers (where the child has looked after status), for all age bands. There was less consistency with regards to eligible informal kinship carers (where the child is subject to a Kinship Care Order (KCO) and is/was previously ‘looked after’ or at risk of becoming ‘looked after’), with several authorities confirming that carers in this category did not receive at least the SRA.

Just under half of authorities noted that they paid above the SRA for ‘some children’ and three authorities said that they paid a higher rate for ‘all’ children.

Most foster and kinship carers also reported that they were receiving the set SRA rate. Of those who were not receiving the set rate, foster carers were more likely to report receiving above the SRA rate (with the exception of those caring for children in the 16+ age group), while kinship carers were more likely to report receiving below the SRA. While it is not possible to say definitively why this is the case, it may be accounted for by different practices that were reported across different local authority areas both in the rates paid by carer type, whether kinship carers did or did not have access to ‘additional payments’ and whether SRA payments made to kinship carers reflected deductions made for other benefits.

Publication of Current Allowances Information

At the launch of the SRA, the Scottish Government and COSLA agreed that local authorities would publish their allowances for foster and kinship carers online. This should include key details of rates, entitlement, eligibility criteria, how eligibility is assessed and where more information can be found. Most local authorities (n=25) reported that the foster care page on their website had been updated since the implementation of the SRA to show the current rate of allowances for foster carers. Three said that it had not and two indicated that they did not know.

There is also a legal duty under Part 13 of the Children and Young People (Scotland) Act 2014 (Support for Kinship Care) and The Kinship Care Assistance (Scotland) Order 2016 for local authorities to publish information about the provision of kinship care assistance in their local authority area, and this includes the rate at which allowances are paid. Again, most local authorities (n=24) reported that the kinship page on their local authority website had been updated since the implementation of the SRA to show the current rate of allowances for kinship carers. Six reported that it had not.

Independent verification of website data found that, across all 32 local authorities, information was unavailable for foster carer rates in five areas, and in six areas for kinship carers. Based on the data available from these websites, there appears to be some variability in the SRA payments being made across different age bands for both fostering and kinship care. Specifically:

• for foster carers, the most significant deviation from SRA rates appears to be for those aged 11-15, with half of authorities (n=16) showing that they paid higher rates for this age band;
• no authorities appear to be paying below the SRA to foster carers consistently across all age bands (although one authority website suggests that they were paying below the SRA for all except those aged 11-15);
• for kinship carers, data suggests that most authorities are paying in line with the SRA, however, a large number (n=13) are paying above the SRA for those aged 11-15 in kinship care (slightly fewer than for children in foster care of the same age); and
• the online data suggests that slightly more authorities are paying below the SRA for children in kinship care across the different age bands compared to those in foster care.

Overall, the allowances data published online contradicts some authorities’ reports that they were paying in line with or above the SRA for some or all children. Regardless of the reasons for the discrepancy, this finding has implications for transparency, both in terms of the accuracy of published information and the consistency of payments being made. The lack of clear and accessible online allowances information, presented in a consistent manner, undermines one of the fundamental intentions of the SRA, i.e. to help bring consistency and transparency to the allowances process.

Paying Above and Below SRA

Where local authorities reported that they were paying above the SRA rates for some children, this was typically because they were already paying above the SRA before its implementation, and to reduce the allowance was seen as inappropriate. No authorities reported that they had reduced the amounts paid to carers following the introduction of the SRA (i.e. where they previously paid above the SRA rates). Again, however, this was not supported by allowance information published online, and there were also some suggestions from interviews that this was not the case (with several carers and TSOs reporting that some authorities appeared to have reduced allowances).

Comparison with Pre-SRA Rates

For foster carers, at the aggregate level, most authorities are now paying higher rates than before the SRA was introduced. The biggest aggregate average increase has been for those aged 16+ (at +£34.65), and for children in the 5-10 age band (at +£34.48). The smallest aggregate average increase appears to have been for those aged 11-15 (at +£8.20).

For kinship carers, at the aggregate level, authorities also appear to be paying higher rates in most age bands post-SRA. However, the overall improvement in allowances across those authorities where data are available appears to be less pronounced overall compared to foster carers. Again, the largest increases appear to be among the 16+ age group (at +£30.06), and the 5-10 age group (at +£28.01). The change in the allowance for those aged 11-15, however, is slightly lower for kinship carers (at +£3.61) compared to foster carers (at +£8.20). The average post-SRA rates appear to be slightly lower for kinship carers compared to foster carers across all age groups.

While the data suggest that there remains a wide range in payments being made across local authorities, the difference between the minimum and maximum rates being paid post-SRA is smaller for all age bands (at the aggregate level) compared to pre-SRA. As such, variation has shrunk since the SRA was introduced.

From the very limited data that were available from IFAs, the ranges in rates reported appear to be significantly narrower than the ranges reported by local authorities. It is not possible to conclude, however, if the narrower variation overall can be accounted for simply by the small number of providers who gave rate data rather than reflecting a more generalisable trend in the sector.

Administration of the SRA

All but one local authority confirmed that backdated payments had been fully paid to all foster and eligible kinship carers in their areas. There were mixed responses with regards to the time taken for completing the backdating process - 59% of authorities who gave a time estimate indicated that it had taken roughly 0-2 months, with a further 19% indicating 3-5 months and 22% indicating a process that took 6+ months.

The main challenges experienced by local authorities with the backdating process were linked to lack of administrative resource to calculate and implement the backdating of payments, limitations with existing payment systems/technical work required to update IT systems, the requirement for manual calculation in some cases, financial decisions needing to be signed off at committee/senior management level, and issues related to when the additional monies for SRA were received from the Scottish Government. There were also views that there had been limited guidance available to authorities regarding how backdating of the SRA should be approached.

Carers gave little negative feedback and at the aggregate level appeared to be relatively content with the time taken for both processing backdated payments and how promptly initial SRA payments had been made (however, there were variations in experiences reported at the geographical level). A more significant issue for carers in relation to the administration of the SRA was how payments were made and communicated. There was significant variation in both the frequency of payments and the nature/detail of payment information that carers received. For several carers there was a lack of clarity around what they were being paid, for whom and when. Several carers and TSOs called for greater clarity in the information shared on a routine basis about how allowances are broken down and what they should/could expect in terms of regularity of payment and any changes over time.

There was also considerable variation in the reported receipt of ‘additional payments and expenses’ made by local authorities and IFAs to carers (including, for example, additional payments given for holidays, birthdays and religious holidays, travel and mileage expenses, unexpected costs/special items, etc.). This was true both geographically and by carer type (with kinship carers typically less likely to be able to access the full range of additional payments available) and decisions around eligibility appearing to be made on a local and discretionary basis.

Kinship carers also reported a range of challenges associated with deductions from the SRA based on claiming other benefits, with evidence that many kinship carers were unaware and/or lacked understanding of how the SRA interacted with other benefits (especially Universal Credit). Differences were also reported in the way that the deduction of child benefit is approached by different local authorities. Several stakeholders shared the view that the current practice of deducting benefits from the pay of kinship carers was acting to reduce the parity in financial support by carer type that had been hoped for when the SRA was introduced.

On a related note, many kinship carers and TSOs reported that kinship carers were often treated as the “poor relation” in the care sphere. Reports were given of significantly varying levels of support for kinship carers across the country, and while some local authorities were seen as having excellent packages of support (e.g. kinship panels, kinship care peer groups, highly trained social workers to work alongside kinship carers), others were seen as having no such wraparound in place. More support and information for kinship carers was urged, recognising that their route or pathway into caring was very different from the experience of most foster carers.

Perceived Adequacy of the Allowance

There was unanimous agreement among stakeholders that the SRA rates should increase, with views that a single increase followed by annual uplifts would be welcomed. Increasing the SRA was seen as an essential lever in helping to meet government commitments around tackling poverty, particularly child poverty.

Several carers (both foster and kinship) reported that the rates paid were not enough to cover daily living expenses, and noted that they continued to experience financial challenges post-SRA implementation. Carers reported using their own money to help them with unmet needs as a result of the allowances being too low, including using savings, money from benefits and pensions, from the foster carer fee, and relying on loans and support from other family members, as well as also taking on other employment or increasing hours in existing employment. Some were also relying heavily on credit to get by.

There were two main age groups where the SRA was perceived as currently being particularly inadequate, i.e. for children aged 0-4 and those aged 11-15. The cost of nappies, milk and equipment for babies and those aged under 2 in particular was noted to place a strain on carers’ finances for children in the pre-school years, while the cost of clothing and shoes, phones/IT and money to facilitate more independence for older children were the most pressing concerns for carers of secondary school aged children.

The other biggest area of discontentment with the age bandings of the SRA was related to children aged 5 to 10 year-olds and 11 to 15 year-olds receiving the same allowance. Feedback on what was essentially seen as a collapsing of these two age bands into one was unanimously negative between the different stakeholder groups. TSOs in particular highlighted that there was a wealth of evidence that the age bracket 5 to 15 is not fit for purpose and so were particularly surprised to see this announced as part of the SRA.

Despite the hardships that most families were facing, there were also some reports of children and young people benefitting directly from the introduction of the SRA, and on this basis it was welcomed. Several families also reported that it helped to reduce their financial stresses and concerns overall.

Implementation, Communication and Understanding of the SRA

Among carers and TSOs, the main feedback in relation to implementation was that it had taken far too long for the SRA to come into effect. As a result of the long wait, many of the perceived weaknesses with the final announcement (including the age banding and allowance rates) were seen as inexcusable, i.e. as there had been ample time for better planning.

For IFAs, one of the biggest issues linked to the SRA was a noted lack of engagement with this sector during the planning and implementation stages. Indeed, most IFAs felt that there had been little or no consultation with their sector in advance of the SRA announcement and noted that when it was announced, the messaging was very confusing. The Scottish Government had made a financial estimate of what the SRA introduction would cost for all foster carers in Scotland (both local authority and independent) and had allocated local authorities the funds pro rata to cover that. In practice, however, the allocated money had not been passed on to independent agencies. IFAs noted that this had been something that the Scottish Government had failed to anticipate in planning for the SRA, and had also been unable or unwilling to rectify retrospectively, instead leaving IFAs and local authorities to negotiate solutions/arrangements between themselves. This was, for IFAs, perhaps one of the biggest oversights in the planning and implementation of the SRA.

Carers and TSOs also noted that, post SRA announcement, there had been variable engagement between local authorities and carers, with notable differences observed around the country. Again, the lack of communication by some local authorities with their carers resulted in confusion around such things as when the new payments would start, if and when backdated payments would be made and whether or not IFA carers would be included in any increases in allowances. It also resulted in some confusion around what the SRA hoped to achieve. Mixed messaging coming from the Scottish Government was also highlighted alongside different interpretation of the SRA policy among local authorities.

Wider Feedback on the SRA and Associated Policy

Although not specifically part of the SRA, a great deal of feedback was given in relation to current continuing care arrangements in Scotland with perceptions that policy in this regard needed to change. Specifically, it was perceived that there was currently a lack of transition planning for young people leaving care, and different continuing care practices being applied by different local authorities across the country which needed to be addressed.

A lesser-raised issue was in relation to kinship carers who become carers at short notice or in emergency situations. Overall, it was considered that there were gaps and delays in terms of initial payments made to such carers and in making them aware of their entitlements. Unlike foster carers, who had a planned journey into caring, there were views that support in place for kinship carers was lacking, especially around financial advice and what kinship caring responsibilities may mean for a family in the long term.

All stakeholders who were represented in the research agreed that the recruitment and retention of carers was also a pressing issue that needed to be addressed, and that any bad publicity linked to the SRA, or any failure to raise fees and allowances or increase the SRA in line with inflation going forward may be a deterrent to future recruitment and retention.

In line with this, greater respect and consideration of the independent sector was urged. Viewing the independent sector as an ‘add on’ was seen as outdated and misguided and instead, treating local authority fostering agencies and independent fostering agencies as two equal parts of Scotland’s fostering service was seen as essential in any future planning and development of the SRA or associated policy.

Future Uplifts

While the SRA had been welcomed, there was shared disappointment from carers, local authorities, IFAs and TSOs that there had been no uplift to payments in the financial year 2024/25, and no indications of an uplift in 2025/26. While there was no clear agreement on what the uplift amounts should be (and bearing in mind disagreements about the existing rates per age band), stakeholders felt strongly that rises were needed to at least reflect increases in inflation and the cost of living. Having a transparent and predictable minimum uplift was also encouraged.

Future Legislation

Carers in particular felt that the Scottish Government should mandate minimum SRA rates across local authorities, but they should still be able to choose to pay above this. Among other stakeholders, however, there was mixed feedback in this regard with no clear preference for legislating for either minimum rates or standard rates (the former would help achieve consistency but the latter would potentially mean that more support could be given to families where authorities felt able). On balance, there did however appear to be a preference for local authority and IFA rates to be aligned.

Many consulted across the research also expressed a desire for local authorities and IFAs to publish their allowances and fees data in an accessible, consistent and up-to-date way. This was seen to be the single biggest step that would help achieve transparency.

Conclusions

While all stakeholders welcomed the SRA and efforts to improve consistency, the increase in payment amounts that were experienced in some areas were seen as long overdue. The research also indicates that allowances are still perceived and experienced as being insufficient to meet families’ needs, especially in light of the current cost of living crisis, with views that the SRA did not go far enough to address the cost of caring for children and young people in the current climate.

Despite implementation challenges and some areas of discrepancy that still need to be ironed out, all stakeholders agreed that, fundamentally, the SRA had been a crucial first step forward improving the lives of foster and kinship carers and the children and young people in their care. It was seen as a positive step forwards but would need to be continually reviewed, in collaboration with all those affected, to ensure that it remains fit for purpose now and in the future.