On 27 February 2026, the Department for Education confirmed a pilot of kinship financial allowances in seven ‘Kinship Zones’ across England. Eligible kinship carers will receive per‑child payments equivalent to foster care allowances. Over £126 million is allocated for the first two years, with the pilot expected to reach around 5,000 children and to run for up to three and a half years. Any expansion and further funding will be decided at the next Spending Review. Ministers say the aim is earlier, more consistent support so children can remain safely within family networks, with independent evaluation built in. (gov.uk)
Payments are pegged to the national minimum fostering allowance for the child’s age and location. For 2026 to 2027, minimum weekly rates range from £176 to £309 depending on age band and whether the household is in London, the South East or the rest of England. Rates are updated each April and may be supplemented locally for additional needs. (gov.uk)
The Kinship Zones are Bexley, Bolton, Newcastle, North East Lincolnshire, Medway, Thurrock and Wiltshire. The areas were selected following a process last June to provide a spread of geographies, demographics and service models. Councils will receive central funding and support and can tailor delivery to local needs, with savings generated by the pilot recycled into wider family‑network support locally. (gov.uk)
Government cites evidence that kinship care frequently secures stronger long‑term outcomes than residential provision, and the pilot is intended to make support available earlier and more consistently so more children can safely remain with relatives. The policy responds to long‑noted inconsistencies between what kinship carers receive and what foster carers are entitled to.
Evaluation will be led by Foundations, working with Alma Economics, to track outcomes for carers and children and to inform any future national roll‑out. The Department for Education has committed to publish findings from the programme to provide transparency on what works and how local offers could be strengthened.
For kinship carers in the seven zones, the allowance will be administered locally and paid per child. It is not a national entitlement at this stage and participation is limited to the pilot areas. Carers should look out for council guidance on how to apply, required documentation and how payments sit alongside other support they already receive.
Policy Wire analysis indicates councils will need to stand up clear eligibility rules, referral and verification processes, and data‑sharing agreements to support the evaluation. Early communication with schools, health partners and advice services will help ensure carers get consistent information, including where family circumstances are complex or change over time.
Practitioners should plan for higher referral volumes as the pilot rolls out. Training on eligibility, consent and record‑keeping will support consistent decision‑making, while finance teams align local kinship policies with the new allowance and model any offsets or reinvestment into wider family support.
The programme could reduce entry to care by stabilising family arrangements where finances are the decisive barrier. Any easing of demand on higher‑cost placements would allow councils to reinvest in early and family‑network support, subject to evidence from the evaluation and Spending Review decisions.
Immediate milestones to watch are publication of each council’s updated kinship local offer, confirmation of payment start dates and the release of the evaluation framework. Over the medium term, placement stability, attendance and carer retention will be the key tests that determine whether ministers move to a wider roll‑out.