Fostering income is disregarded for the housing element of UC. This applies for rented accommodation (not available if a carer has a property that they own and rent out). The housing element is means tested.
Housing Element Benefit and Bedrooms:
This could be reduced by:
- 14% of the ‘eligible rent’ if you have 1 extra bedroom
- 25% of the ‘eligible rent’ if you have 2 or more extra bedrooms
The changes will not affect anyone who is of state pension age - their housing element will be unchanged. Most local authorities have a benefits calculator on their website.
Under Occupancy
Foster Carers are allowed one extra bedroom under the size criteria rules providing they have fostered a child or became an approved foster carer within the last 52 weeks.
You can claim one bedroom for:
- each single adult
- each couple
- all children of the same gender under 16
- all children under 10 (regardless of gender)
- each tenant with a disability
- each partner needing an external overnight carer
- all foster children (also applies when no foster children live with you as long as the room isn’t empty for more than 52 weeks)
- each foster child that can’t share a bedroom because of a disability or medical condition (contact your local council with medical evidence)
- each adult child in the Armed Forces or each reservist
all external carers who provide overnight care for you or your partner
You may wish to appeal and seek a Discretionary Housing Payments guidance manual. However, in May 2022 the DWP does not mention foster carers as part of the list of people entitled to this
Council Tax Relief
Council Tax Relief is a means tested benefit. Your fostering income must be disregarded for the purposes of Council Tax reduction. If you are eligible you can apply for Council Tax Reduction, through the local authority.