The Special Guardianship Allowance (SGA) is a financial payment made by local authorities in England and Wales to special guardians who hold a Special Guardianship Order (SGO) for a child who was previously looked after. It is designed to help cover the costs of raising the child and is typically means-tested based on household income, savings and circumstances.

Yes, in most cases the SGA is means-tested using a framework based on Income Support and Income-based Jobseeker’s Allowance rates. Local authorities assess the guardian’s income, savings, housing costs and family circumstances to calculate the allowance. Some elements, such as the core child element, may be paid without means testing depending on the local authority’s policy.

SGA rates vary by local authority, but typical weekly payments range from £100 to £350 per child depending on age, needs and household income. The allowance usually includes a base family element, an age-banded child element, a housing element and additional premiums for disability or special educational needs. Rates are reviewed annually and differ between councils.

You may be eligible if you hold a Special Guardianship Order for a child who was previously looked after by the local authority, you are resident in England or Wales, and you pass the means test. Grandparents, other family members and family friends who become special guardians can all apply. The child must usually have been in local authority care immediately before the SGO was granted.

The Special Guardianship Allowance is generally treated as income when calculating Universal Credit, which may reduce your UC entitlement. However, the first £20,000 of any backdated SGA payment is disregarded for means-tested benefits for 29 weeks under current regulations. You should always inform the DWP and your local authority of any changes in circumstances.

The SGA is usually reviewed annually and can continue until the young person turns 18, or until they finish full-time education or training if they are 18 or over. The allowance may also stop if the child no longer lives with the special guardian, the guardian’s financial circumstances change significantly, or the SGO is discharged by the court.

Yes. All local authorities must have a formal representation and complaints procedure. If you disagree with your SGA assessment, you can request a review of the financial assessment, provide additional evidence of your circumstances, and if necessary use the authority’s formal complaints procedure. You can also escalate to the Local Government and Social Care Ombudsman if unresolved.

Yes. Fostering allowances are paid to approved foster carers and are generally not means-tested. SGA is paid to special guardians under a court order and is usually means-tested. SGA rates are often based on core fostering allowance rates but are assessed differently. Once an SGO is granted, fostering payments stop and SGA takes over.