If it is deducting the child element from the kinship care allowance—it might well be, because that is the authority’s normal policy—the kinship carer has not benefited at all by having it and they have been overpaid universal credit, which will be recovered from them.Official Report 24 February 2022, col 26
Alison Gillies further highlighted—
One issue that I feel quite strongly about is that local authorities really need updated guidance, because the existing guidance from 2016, which covers lots of things including the kinship care allowance, has not been updated to include anything meaningful about universal credit.