If the family are on I/S, I believe that an adoption allowance, in this case £69 pw, counts in full up to the applicable amount allowed for the child - anything over that is ignored?

However, if they migrate the children over to CTC, is the adoption allownace then ignored, or treated in the same manner ?

You are quite right on the first count

Adoption allowances are ignored as income in full for Tax Credits CPAG pg1359
You will need to be aware that different local authorities treat income differently in relation to any adoption allowances paid to families.So some LA's will deduct pound for pound while others will have a more generous calculation.There should be an obligation on the part of the adoptive family to claim all benefits and credits entiltled to them but some LA's don't seem to be following this to the letter.For families who have a choice about migrating it might be worth checking this out.

Mike please note that any enhanced disability premium is not included - it's child's allowance + child disability premium.

(Sorry to sound fussy but have had several run-ins with DWP applying EDP as well)

Thanks for the replies Gentlemen...........

The amendments to schedule 9 of the Income Support (General) Regulations 1987 create a total disregard for payments made by the Local Authority in respect of children, however a transitional award of Income Support is still reduced because of certain LA payments.

Paragraph 25 of Schedule 9 states that any payment shall be disregard to the extent outlined in paragraph 25 (2). This refers to the amount that exceeds the child or young person’s ‘applicable amount’. Surely the child does not have an applicable amount and therefore the entire LA payment should be disregarded. Regulation 17, again of the IS (General) Regulations 1989, states that an applicable amount shall be the claimants applicable amount. This supports the idea that the LA payment should be disregarded.