The following Local Government Q&A provides comprehensive and up to date legal information covering:
Under Schedule 1 to the Children Act 1989 (ChA 1989), local authorities have the power to make child arrangements order allowances:
15Local authority contribution to child's maintenance
Where a child lives, or is to live, with a person as the result of a [child arrangements order], a local authority may make contributions to that person towards the cost of the accommodation and maintenance of the child.
Subpara (1) does not apply where the person with whom the child lives, or is to live, is a parent of the child or the husband or wife [or civil partner] of a parent of the child.
This further reading from Butterworths—
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