Grandparents Raising Grandchildren NZ
Taking on a grandchild, a niece, a nephew or the child of a friend usually happens quickly and in difficult circumstances. Money is rarely the first thing on anyone's mind, and by the time it becomes urgent the household has often been absorbing costs for months that it was never budgeted for.
There is real support available, and the most important thing to know about it is the part people assume rules them out. The Unsupported Child's Benefit and the Orphan's Benefit are paid for the child, not to a household that has been means tested. If you only receive one of these, your own income and assets are not taken into account at all.
The three things to remember
Payments are non-taxable and weekly, from $301.53 for a child under 5 to $350.58 at 14 and over. Your income and assets are not tested if that is all you receive. And a $350 establishment grant is paid automatically per child.
These benefits need the care arrangement to be likely to last a year or more, and they need the child to be living with you rather than staying temporarily. They also generally require that the parents are not supporting the child. Getting the arrangement documented early, whether through a family agreement or a Family Court order, makes the application straightforward and makes the later questions about school, medical consent and travel far easier.
Which benefit applies
| Situation | Benefit |
|---|---|
| The child's parents have died, cannot be found, or cannot care for the child because of a serious long-term health condition or incapacity | Orphan's Benefit |
| The child's parents cannot care for them because of a family breakdown | Unsupported Child's Benefit |
The two pay at the same rates and carry the same extras. Work and Income decides which applies from the circumstances, so you do not need to work it out before applying. What matters is applying rather than waiting until the situation feels permanent enough.
The rates
These are weekly, non-taxable, and set by the age of the child. They apply from 1 April 2026.
| Age of child | Weekly rate |
|---|---|
| Under 5 | $301.53 |
| 5 to 9 | $303.62 |
| 10 to 13 | $327.16 |
| 14 and over | $350.58 |
Non-taxable matters more than it sounds. There is no tax to come off, nothing to square up at the end of the year, and the payment does not push your other income into a higher bracket.
Rates rise with the child's age band, so payments increase automatically as the children get older. They are also adjusted annually on 1 April, which is worth knowing if you are budgeting a year ahead.
A clothing allowance is paid weekly on top for children in your care. The establishment grant of $350.00 per child is automatic when the benefit starts, so you do not have to ask. And the Extraordinary Care Fund exists for children who are showing promise or are experiencing difficulties, which is a separate application and is not widely known.
The income rule people get wrong
Most Work and Income payments look at your income, your partner's income, and often your assets. These two do not work that way.
This is the single most common reason people do not apply. A working grandparent assumes they earn too much, and nobody tells them otherwise. If you are caring for someone else's child long term, apply and let Work and Income assess it.
What it does to your other entitlements
Adding a child to your household changes more than one thing, and some of the changes work in your favour.
| What to check | Why |
|---|---|
| Accommodation Supplement | Household size affects it, so a larger household can mean a higher entitlement |
| Working for Families | You generally cannot receive Working for Families tax credits for the same child you get these benefits for. Do not claim both without checking |
| Community Services Card | Household composition affects eligibility, and the card cuts health costs |
| Childcare and OSCAR subsidies | Separate assistance with childcare costs, worth asking about |
| Disability Allowance | If the child has ongoing health costs, this is a separate payment again |
The accommodation supplement calculator shows where you would sit, and the Working for Families calculator covers the tax credit side for any other children in the household.
The legal side, briefly
Money and legal status are separate questions, but they interact. You can receive these benefits without a court order, and many carers do. What an order gives you is authority: the ability to consent to medical treatment, enrol a child in school without argument, apply for a passport, and make the ordinary decisions a parent makes.
Practical things worth doing early
Grandparents Raising Grandchildren Trust NZ supports carers in exactly this position and knows the system well. Community Law centres give free legal advice on guardianship and parenting orders. Work and Income can be asked to check your full entitlement rather than just the thing you rang about, and that is a reasonable request to make.
What this guide does not cover
Formal Oranga Tamariki care arrangements, including caregiver support and board payments, follow their own rules. Adoption is a separate legal process entirely. Child support obligations of the parents are a separate subject. This is general information rather than legal or financial advice, and benefit rates change annually on 1 April.
Test Your Knowledge
Ten questions on supporting a child who is not your own.
Sources: Work and Income on the Unsupported Child's Benefit, Orphan's Benefit, clothing allowance, establishment grant and Extraordinary Care Fund, and the Work and Income rates table effective 1 April 2026. Rates are adjusted annually on 1 April; check the current figures before relying on them.
Related guides
- The Cost of Raising a Child in New Zealand, a related guide in the same area.