Help for Adoptive Parents from the Benefit / Tax Credit
Systems
INTRODUCTION...(pdf
version of the guidance available here)
The Adoption Services (local authorities)(England) Regulations 2003
changed the way local authorities deal with Adoption Support. The new rules / procedures are outlined
in the Adoption Support Services Guidance. This Guidance outlines the range, principles and standards
expected of the services to be provided in accordance with the Act and Regulations. Within this range
is the giving of financial support which can start prior or during adoption, or at any time in the adoptive
child’s childhood including help from the Benefits System.
From October 2003, local authorities must assess and pay financial support
for adoptive families in accordance with the Regulations. The prospective adoptive family need to be
made aware of, and take advantage of, all benefits and tax credits available to them. The amount of
adoptive support must take fully into account income from benefits and tax credits. back
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The tax credit and benefit system
There are a variety of tax credits and benefits available to people
depending on their circumstances. This will be the same with people preparing to or having adopted a
child / children. The range of benefits and credits are provided by different agencies. The main benefits
relating to adoption are as follows:-
Income Support (IS) - a means tested benefit for
those with low income, can be paid as a top up if in receipt of other benefits. Can also include help
towards mortgage costs.
Incapacity Benefit (IB) - a benefit for those incapable
of work, having paid sufficient national insurance contributions.
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(IS and IB claimed from local JobCentrePlus)
Housing Benefit (HB) - a means tested benefit towards
cost of rented accommodation.
Council Tax Benefit (CTB) - a means tested benefit
towards cost of Council Tax. back to top
(HB and CTB claimed from local authority)
Child Tax Credit (CTC) - a means tested tax credit
for people with responsibility for children.
Working Tax Credit (WTC) - a means tested benefit
for people in work. back to top
(CTC and WTC claimed from Inland Revenue)
Statutory Adoption Pay (SAP) - Payable if a person
ceases work to adopt a child having worked for an employer for more than 26 weeks and earning over £79.
Payable at up to £108.85 per week for 26 weeks.
Ignored
as income for tax credits.
Treated as still being in work for other
benefits. back to top
(Payable by your employer)
Carers Allowance (CA) - Can be claimed if child
is in receipt of Disability Living Allowance middle or high rate. Cannot be paid if earnings, including
Statutory Adoption Pay, are over £84.00 per week. May give entitlement to Income Support
as a Carer.
Disability Living Allowance - Can be claimed for
a disabled child who has care and mobility needs.
(CA and DLA claimed from Disability and Carers Service)
Benefits and adoption
Entitlement to benefits and tax credits is dependent on many circumstances
including level of income, household members, whether or not in work, etc. It also depends on what stage
of the adoption process you are at. This can either be pre-adoption – i.e. child has been placed with
you for adoption but prior to the formal process being concluded, or post adoption – i.e. once the formal
process has concluded. back to topLink
Pre-adoption
Access to the benefit system is limited because rules state that the
child cannot be treated as part of the family for benefits such as Income Support , Housing Benefit
and Council Tax Benefit. The only exception for these benefits is if no local authority adoption allowances
are paid, implying the family has sufficient means to support the child.
The benefits that can to be claimed are:-
- Statutory Adoption Pay (SAP);
- Child Benefit (CB);
- Child Tax Credit (CTC) / Working Tax Credit (WTC);
- Carers Allowance (CA) if the child is severely disabled;
- Income Support (IS), Housing Benefit (HB) and Council Tax Benefit (CTB) -
if have other children as part of the family. back to top
Post
adoption
Now the adoptive child can be recognised as part of the family and access
all relevant benefits or increases in existing benefits to take account of the child.
Any local authority financial support paid is ignored as income for
the calculation of WTC, CTC (and from April 2004 IS, JSA(IB)). For HB and CTB the adoption allowances
are treated as income but only up to the value of the adopted child’s allowances, including the disabled
child premium (if applicable).
The adoptive child has access to relevant benefits irrespective of their
status, adopted, fostered, living with family, etc. The usual benefit is Disability Living Allowance
if the child has care or mobility needs because of their disability.
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Responsibility for children
On
occasions it is necessary to ascertain who has responsibility for a child to access benefits. This is
not necessarily the child’s parent. A child can only be counted as the responsibility of one claimant.
You are treated as responsible for a child if:-
- she/he normally lives with you; or
- you have main responsibility for her/him.
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“Main responsibility
test”
The main responsibility test applies if:-
- a child lives with both of you; and
- someone who is not your partner (in benefit terms) in the same household;
and
- you and at least one of the other people with whom your child normally lives
claims Child Tax Credit.
You and the other Child Tax
Credit claimant can decide which of you should count as having ”main responsibility”.
If main responsibility can’t be agreed a decision maker will make the
decision based on several factors, e.g. court / legal orders, the number of days per week the child
lives in different households, who pays for food, childcare, etc.
The inference here is that if both of a same sex couple claims responsibility
for the child and both claim Child Tax Credit, an Inland Revenue decision maker intervenes and is likely
to award Child Tax Credit to the legally adoptive parent. back to
top
Child Benefit
You qualify for Child Benefit for a child if:-
- you are responsible for the child either because:-
- the child lives with you; or
- you contribute towards the maintenance of the child at least at the rate of
Child Benefit; and
- you have priority over other potential claimants; and
- you and the child satisfy residence conditions; and
- you are not subject to immigration controls.
The
child must be under 16; under 19 and in full time education, or under 18 having ceased education but
in an “extension period”.
Therefore, providing the conditions are met, either one of a same sex
couple can claim child benefit as responsible for the child. Again if there is a dispute the legally
adoptive parent is likely to have benefit awarded back to top
How to claim benefits and tax credits
Most claim packs can be ordered by telephone, then completed and returned
to the address specified. In addition it is possible to complete certain claim forms on-line. The contact
details for the relevant benefits and tax credits are as follows:-
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Where to get advice
You can get advice on which benefits and tax credits you might be eligible
for in the adoption process from the member of the Fostering and Adoption Team dealing with you.
You can access information on each specific benefit via the websites
listed above. Housing Benefit and Council Tax Benefit information is also on the DWP website.
To get independent advice on the benefit and tax credit system, particularly
in relation to the overpayments and appeals processes, you can visit your local advice centre and CAB.
To find out which centre is appropriate call the Community Legal Service Directory helpline on 0845
608 1122.
The rest of this website will also give information on benefits and
where to go for advice. back to top
Benefits / tax credits and adoption examples
Scenario one
Single person currently out of work and claiming Jobseekers Allowance,
Housing Benefit and Council Tax Benefit.
Pre-Adoption - Can claim Child Tax Credit and Child Benefit. These are
counted as income for means tested benefits. Can claim a small amount of Income Support but
will
not be entitled to Jobseekers Allowance as no longer seeking work.
Retains full entitlement
to Housing Benefit and Council Tax Benefit.
Post-Adoption - Now child treated as part of family so level of Income
Support increases to take account of this. No change to other benefits / credits.
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Scenario two
Single person working and claiming no benefits. Gives up work to look
after child placed for adoption.
Pre-Adoption – Can claim Statutory Adoption Pay, Working Tax Credit,
Child Tax Credit
and Child Benefit. After 6 months Statutory Adoption Pay runs out and
Working Tax Credit no longer payable as no longer treated as working.
Income Support,
Housing Benefit and Council Tax Benefit unlikely to be payable as child not counted.
Post-Adoption - Child now counted as part of the family so may become
entitled to Income Support, Housing Benefit and Council Tax Benefit. Retains entitlement to
Child
Benefit and Child Tax Credit. back to top
Scenario
three
Couple, one working, existing other children. Receiving Child Tax Credit
and Working Tax Credit.
Pre-Adoption – can claim Child Benefit for placed child plus increase
in Child Tax Credit /
Working Tax Credit entitlement for child.
Post-Adoption – as above. back
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Adoption support
Financial support towards the cost of adopting a child can be provided
in the form of Adoption Support. This can either be in the form of a weekly allowance to meet additional
living costs, or one off lump sums to meet one off / capital costs.
The amount of Adoption Support able to be provided is means tested.
This takes account of income being received into the household, including benefits and tax credits and
the amount of outgoings.
A member of the Fostering and Adoption Team will assist you in the application
process for receiving Adoption Support. back to top
Help with disablement adaptations
The Nottingham City Council Adaptations Agency can provide help if you
adopt a child who has substantial difficulties due to disability or long term health problems. An adaptation
scheme can be designed, in consultation with an Occupational Therapist. Adaptation works can include:-
- ramps and paths;
- fitting a shower over a bath;
- resiting a bath or toilet into a more suitable position;
- improving kitchen layout for wheelchair use.
The
cost of adaptations is fee based however a means tested Disabled Facilities Grant can be applied for
to cover some or all of the cost.
To get more details or to apply for adaptations and / or a Disabled
Facilities Grant contact the Adaptation Agency on 915 3280 or email adaptions.housing@nottinghamcity.gov.uk
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