The grandmother, who cannot be named for legal reasons, won her case against Kent County Council after a five-year battle.
She retired to start looking after her 15-year-old granddaughter in 2005, when Kent social services requested that she take the child into her care. But the council then argued that the girl's case was a "private arrangement".
That meant that the grandmother received £63.56 a week for the girl's care, as opposed to £146.23 each week, which is what the average foster parent receives.
The grandmother will now receive the same support as a foster carer, as well as back payments from the council.
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