Families and friends who have to take over caring for another person's child should get a State benefit to help pay the "enormous" bill, a report urged yesterday.

Up to 300,000 children in Britain are living with friends or family members other than their parents, according to the research by campaign organisation Family Rights Group.

Many of these carers are not official foster parents but are looking after children in an "unofficial" capacity and make "enormous financial sacrifices", the report said.

But the study funded by the Joseph Rowntree Foundation concluded that the current benefits system is not generous or flexible enough "to meet the short-term and long-term financial impact of caring for another person's child".

Family and friend carers face difficulties accessing child benefit and financial help available from local social services is not adequate on its own, the research said.

And the guardian's allowance State benefit is only available where the child is an orphan or has a single remaining parent who is missing, in jail or in a psychiatric hospital.

The report concluded: "Family and friend carers who are prepared to bring up a child who cannot live with his or her parents should be entitled to an allowance that reflects the cost of care.

"This should not be a discretionary benefit administered by social services but a state benefit, either in the form of an unsupported child element to tax credits or an improved and expanded guardian's allowance."

Friday September 12, 2003