This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Comprehensive guide to guardianship orders and financial responsibility for children in England and Wales, explaining special guardianship orders, parental responsibility, financial support duties, how local authorities assess needs, testamentary guardianship and practical steps for carers and parents.
When a child cannot live with their birth parents, family courts and parents may consider guardianship arrangements as a way to ensure the child's welfare and future care. In England and Wales, guardianship orders are part of the legal framework that governs who has responsibility for the upbringing of a child and how financial responsibilities are shared. These arrangements, which can arise through court orders such as special guardianship orders (SGOs) or testamentary guardianship appointments in wills, involve significant legal rights and duties, including financial obligations towards the child. This article explains how these orders work, what financial responsibilities arise from them, the legal processes involved and common practical questions that families and carers may encounter.
Legal Basis for Guardianship Orders
Parental Responsibility and Guardianship
Under the Children Act 1989, parental responsibility encompasses all rights, duties, powers, responsibilities and authority over a child and their property. It can be held by birth parents automatically or by other individuals through court orders, including guardianship orders. Guardianship orders may be made by courts to give legal authority to someone other than a parent to care for a child's welfare and make key decisions on their upbringing. (§1 search0 and §1search1)
There are two principal forms of guardianship when dealing with children:
- Special Guardianship Orders (SGOs) – A court order made under section 14A of the Children Act 1989, granting parental responsibility to a “special guardian,” usually a relative, family friend or long‑term carer, without severing legal ties with the birth parents. (§1search0)
- Testamentary Guardianship – An appointment made by a parent in their will under section 5 of the Children Act 1989, which takes effect if the parent dies and there is no other person holding parental responsibility. (§1search10)
Both arrangements are intended to safeguard the child's welfare, provide stability and define who is legally responsible for their care and decisions about their life.
Special Guardianship and Parental Responsibility
What a Special Guardianship Order Means
A Special Guardianship Order is granted by the Family Court when it considers that placement with a special guardian is in the child's best interests and that the guardian can provide a stable, long‑term home. §1search0 notes the order gives enhanced parental responsibility, enabling the special guardian to make most day‑to‑day and significant decisions without consulting the birth parents, subject to some exceptions (such as changing the child's surname or long‑term travel outside the UK). (§1search1)
Special guardians and birth parents may both hold parental responsibility, but the special guardian's authority usually prevails in practical terms. The order generally continues until the child reaches 18. (§1search24)
Financial Responsibility Under an SGO
Financial responsibility for a child under an SGO remains primarily with the person caring for the child – usually the special guardian – who is expected to provide for the child's everyday needs, such as food, clothing, education and healthcare, in the same way as a parent would. This includes accessing mainstream support such as Child Benefit and other family‑related benefits available through the welfare system. (§0search24; §0search7)
However, local authorities must assess and consider financial support as part of special guardianship support services when specific conditions are met. These duties arise from the Special Guardianship Regulations 2005 and related statutory guidance, which require councils to determine whether financial assistance is necessary to facilitate or sustain a special guardianship arrangement for the welfare of the child. (§0search20)
Whether a local authority must provide financial support depends on:
- Whether the child was previously looked after by children's services before the order was made.
- Whether the local authority considers that financial support is necessary to ensure the prospective or current special guardian can care for the child.
- A means‑tested assessment of the guardian's financial resources and the needs of the child, taking into account available benefits and allowances so that support, if offered, does not duplicate other payments. (§0search9; §0search10; §0search20; §0search26)
The key principle is that support should not be the sole reason an arrangement fails; the local authority must assess need objectively and fairly on a case‑by‑case basis. (§0search20; §0search9)
Practical Financial Support Under Guardianship
Main Sources of Financial Support
When a local authority agrees that financial support is needed, the package may include:
- Special Guardianship Allowance – A means‑tested allowance that may contribute toward the cost of caring for the child. Local authorities are generally advised to regard fostering allowances as a benchmark for setting rates, though they are not required to match them exactly. (§0search9; §0search26)
- Benefits and Tax Credits – Special guardians can ordinarily claim mainstream welfare benefits, such as Child Benefit and may be eligible for Child Tax Credits or Universal Credit where applicable. (§0search7; §0search24)
- Support Services – Children's services may also offer non‑financial support, including counselling, mediation for contact with the child's birth family, training, therapeutic services and information about accessing other services for children in need. (§1search4; §0search0)
Importantly, the child's birth parents retain financial responsibility for their child unless there is a court order that affects that obligation. This can mean that birth parents may be required to contribute to maintenance in appropriate cases, depending on circumstances. (§0search24; §0search26)
Role of Local Authority Support Plans
When handling SGOs, local authorities are required to prepare a special guardianship support plan that outlines the types of assistance, including financial support, that will be offered if the court approves the arrangement. This plan forms part of the basis for decision‑making and may include details of payments, review arrangements and expectations for access to benefits. (§1search0)
Even after an SGO is in force, the local authority continues to have responsibilities for assessing and providing support services, including ongoing financial support previously agreed if the family qualifies. (§0search20; §0search21)
Testamentary Guardianship and Financial Arrangements
Appointment and Effect
A testamentary guardian is appointed by a parent in their will under section 5 of the Children Act 1989. This appointment has no legal effect until the parent dies, and the guardian's authority arises only if there is no surviving person with parental responsibility or relevant court order. (§1search5; §1search10)
Upon taking effect, a testamentary guardian holds parental responsibility and assumes legal authority to make decisions about the child's upbringing, but does not automatically obtain day‑to‑‑day care rights unless accompanied by a Child Arrangements Order or similar court order specifying where the child lives. (§1search10)
Financial responsibility in this context typically means providing for the child's maintenance and welfare. This may involve:
- Using funds held in trust for the child (often set up within the will) for education, housing and care needs.
- Accessing estate assets and resources to cover ongoing costs.
- Claiming relevant benefits for the child where eligible.
A trustee may be appointed in the will to manage financial resources on behalf of the child, ensuring they are used appropriately for the child's benefit. (§1search6)
Legal Process and Timeframes
Applying for a Special Guardianship Order
To obtain an SGO, an application is made to the Family Court under section 14A of the Children Act 1989. The court considers whether an order would be better for the child than no order, based on welfare factors including stability, the child's views (where appropriate) and the ability of the applicant to care for the child. (§1search23)
As part of this process, children's services must prepare a report that includes an assessment of suitability and an outline of the support needs, potentially including financial involvement. The court will take that report into account before deciding. (§1search0; §1search4)
Contesting or Changing Orders
Special guardianship orders can be varied or discharged by the court on application by the guardian, birth parents or the child in specified circumstances, including changes in circumstances that affect the child's welfare. (§1search7)
Common Questions
Is financial support automatic for special guardians?
No. Financial support from a local authority is discretionary and usually subject to a means test and assessment of need except where the child was looked after immediately before the SGO. §1search4; §0search20)
Do special guardians pay maintenance for the child?
Yes. Special guardians are expected to provide everyday financial care for the child, with support from benefits and potentially local authority allowances, while birth parents retain legal financial responsibility unless otherwise ordered. (§0search24; §0search26)
Can guardians receive Child Benefit or tax credits?
Yes. Special guardians may claim benefits such as Child Benefit and may qualify for tax credits or Universal Credit where eligible. (§0search7)
Does an SGO remove parental responsibility from birth parents?
No. The SGO gives the guardian enhanced parental responsibility, but birth parents retain legal responsibility, although their practical role may be limited by the court's decision. (§1search24)
Final Thoughts
Guardianship orders in England and Wales, particularly special guardianship orders, play a vital role in ensuring the care and welfare of children who cannot live with their birth parents. These orders confer parental responsibility and involve significant financial responsibilities for the guardian, who is expected to support the child's upbringing. Local authorities have statutory duties to consider and, where appropriate, offer financial support and other services to sustain stable arrangements, especially when the child was previously looked after. Testamentary guardianship arrangements made in wills can also shape financial responsibilities when a parent dies, but usually require complementary legal orders for day‑to‑day care authority. Understanding these legal mechanisms helps carers, parents and professionals engage effectively in planning for a child's future.
