Financial Support
Scope of this chapter
Note: from April 2014, Residence Orders and Contact Orders were replaced by Child Arrangements Orders. Prior to April 2014, a Residence Order was a Court Order made under section 8 of the Children Act 1989, settling the arrangements as to the person with whom a child was to live.
This chapter covers financial support in relation to Adoption, Special Guardianship, Residence Orders / Child Arrangement Orders, Foster Carers (including family/friend and Connected Person carers), Section 17.
Section 17 of the 1989 Children Act states that "it shall be the general duty of every local authority:
- To safeguard and promote the welfare of children within their area who are in need; and
- So far as is consistent with that duty, to promote the upbringing of such children by their families".
By providing a range and level of services appropriate to those children's needs:
"Before giving any assistance or imposing any conditions, a local authority should have regard to the means of the child concerned and of each of his or her parents."
Further:
"No person shall be liable to make any repayment of assistance or of its value at any time when he is in receipt of income support or family credit under the Social Security Act 1986."
and
"For the purposes of this part, a child shall be taken to be in need if:
- They are unlikely to achieve or maintain. Or to have the opportunity of achieving or maintaining a reasonable standard of health or development without the provision for them of services by a local authority under this part;
- Their health or development is likely to be significantly impaired or further inspired without the provision for them of such services or;
- They are disabled and 'family' in relation to such a child, includes any person who has parental responsibility for the child and any other person with whom they have been living".
The following sections of Children's Services have delegated Section 17 budgets:
- Referral and Assessment Teams;
- Safeguarding Teams;
- Children with Disabilities Team.
Social workers working with families need to ensure that they are accessing the full range of benefits to which they are entitled.
Advice and support in achieving this is available from the Welfare Rights Service based at Bolton Town Hall. Telephone advice is available by contacting 333820 during office hours. For more complex issues, an appointment can be made for the family to have face to face advice.
Section 17 support should never duplicate support to which families are entitled.
Legislation states that Section 17 assistance should be “in kind or, in exceptional circumstances, in cash”. Therefore, support should generally be for equipment or services that can be authorised and receipted to limit the use of cash to when there is no other option. When cash payments are made, families need to evidence the payment and a copy needs to be kept on file.
Section 17 is more appropriately used for one-off short term situations where a family need additional support, or in a crisis or emergency where there is a need for immediate assistance whilst longer term support is secured. If Section 17 is used to cover delay in a family receiving a benefit (e.g. Child Benefit) to which they are entitled, this should be paid as a loan with a clear arrangement for repayment when the backdated amount is received by the family.
When a child or young person is facing family breakdown and there is a risk of admission to local authority care, Section 17 support can be used to prevent this. Children/young people should generally only be admitted to care where there are unresolved child protection issues. Children/young people must never be Accommodated under Section 20 of the 1989 Children Act for financial reasons.
Where a child/young person is placed by a parent or guardian (with Parental Responsibility) with a carer (relative or friend) other than those with Parental Responsibility, this is an arrangement between the parent(s) and the relative/friend.
If a child/young person resides with a carer who is not a blood relative and for longer than 28 days, this qualifies as a Private Fostering Arrangement - see Recognising and Assessing Private Fostering Arrangements Procedure. Private Fostering does not entitle carers to any allowances, as set out in Appendix 1: Scale of Fostering Allowances from 1.4.2019, from the local authority.
Children and young people may reside with family or friends where there is a network of support, which can include support from Children's Services. This avoids the stigma of care and reinforces parental responsibilities and the importance of family and friends as carers. In these situations social workers act in a supportive advisory way to the extended family. Use of Family Group Meetings to help the wider family find solutions is a good example of how this can be achieved.
When social workers are working in partnership with families in situations of family breakdown, they need to be clear whether they are arranging the placement or it is being arranged by a relative or friend. If placement is arranged by Children's Services this will be seen as accommodating under Section 20, Children Act.
Therefore social workers should:
- As part of this process offer advice and support (when necessary through the Welfare Rights Service) in helping financial support for child/young person to be transferred to the new carer;
- Be clear that Children's Services (apart from Section 17 provision) is not responsible for the financial support of children where placement is arranged by parent/guardian. Where possible this should be in writing;
- Be clear in using Section 17 assistance about the legal parameters for using this support.
All foster carers (including Family and Friends Carers / Connected Persons) are paid the same maintenance allowances.
The maintenance allowances are the National Minimum Recommended allowances.
Maintenance allowances are reviewed every 12 months.
Professional carers are paid a fee in addition to the maintenance allowances. They must undertake preparation training and are assessed using the competencies framework and required to participate fully in post approval necessary training and development.
Enhanced carers (who look after challenging teenagers and children with disability with a high level of personal care needs) are paid a higher fee in recognition of the skills and knowledge required and it is expected that there will only be one child in placement. At least one carer in the family is expected not to work in order to undertake the fostering task.
Professional and enhanced carers are paid a retainer (equivalent to the fee element) for a maximum of eight weeks per placement per year for periods when they have no child in placement.
Professional and enhanced carers can receive a loyalty payment decided at their annual review. This is dependent/is awarded on evidence that the carers have taken and worked with appropriate placements of children and young people as requested by the Fostering Team. It also depends on evidence that they have undertaken training as required and worked to improve children's outcomes.
These payments are available to foster carers (including Family and Friends Carers / Connected Persons) through Christmas, festival, birthday, holiday payments and travel expenses. Initial clothing grants are also paid and, when necessary, grants to provide school uniforms.
There is also a range of discretionary payments for all foster carers (including Family and Friends Carers / Connected Persons) that can be paid based on assessment of individual children's and carers' needs. This means that financial support can be tailored to meet the needs of children and carers. Carers can request such payments through their supervisory social worker or the child's social worker. These payments need to be authorised by the Head of Service and, when appropriate, the Assistant Director Children's Services.
When LAC over 16 years are working, their earnings can be supplemented to ensure carers reach the agreed levels of payment for maintenance, clothing and pocket money.
As allowances, fees and payments change they need regular updating. A schedule of up to date payments is available to all foster carers. See Appendix 1: Scale of Fostering Allowances from 1.4.2019 for the allowances payments paid.
Family and Friends Carers / Connected Person carers are given temporary approval as foster carers for specific children who they have a relationship with Extended Families or link to e.g. child of friends. They are assessed using a child specific format and are only approved for that child. See Placements with Connected Persons Procedure.
Family and Friends Carers / Connected Person carers can apply to become mainstream carers in the usual manner. They must attend preparation training. They also require a different level of assessment (as not child-specific) based on national competencies and to the same standards as mainstream carers. This would also need to be approved by the Fostering Panel and recommendations agreed by the Assistant Director, Children's Services.
Recruited Professional carers must be able to take placements as necessary and demonstrate quality and commitment over a range of placements. They must also attend core training courses and more specialised training as identified by their supervising social workers or through their Reviews as well as completion of the Children's Workforce Council Standards workbook.
Connected Person carers have access to relevant training and are encouraged to attend but are not required to attend.
Enhanced carers have a detailed job description and expectations document which details the type of placements they will take and the high requirements in terms of personal circumstances, training and development.
In exceptional circumstances the Assistant Director can use discretion to increase payments in accordance with the assessed needs of the child and carers. This should be in circumstances where the welfare of a child may be jeopardised.
The Adoption and Children Act 2002 and the Adoption Support Services Regulations 2005 outline the arrangements for local authorities providing support (including financial support) to adoptive children.
The eligibility criteria for the provision of financial support are as follows:
Where it is necessary to ensure that the adoptive parent can look after the child.
Where the child needs special care which requires greater expenditure by reason of illness, disability, emotional/behavioural difficulties or the continuing consequences of past abuse or Neglect.
Where it is necessary for the local authority to make any special arrangements to facilitate the placement or adoption by reason of:
- Age or ethnic origin of a child;
- The desirability of the child being placed with the same adoptive parent as their brother or sister (whether full or half sibling) or with a child with whom they have previously shared a home.
Where such support is to meet recurring costs of travel for the purpose of visits between the child and the related person.
Where the local authority considers it appropriate to make a contribution to meet the following kinds of expenditure:
- Expenditure on reasonable legal costs to be agreed with the local authority Legal Department;
- Expenditure for introducing an adoptive child to adoptive parents;
- Expenditure necessary for the purpose of accommodating and maintaining the child, including provision of furniture and domestic equipment, alterations and adaptations to homes, provision of means of transport and provision of clothing, toys and other items necessary for the purpose of looking after the child.
Initial Placement Grant
This is a standard grant which is payable for all children who meet the eligibility criteria moving into new placements. Consideration to paying the initial placement grant can also be given on a discretionary basis to those on low incomes.
Initial placement grants are not payable for children who are being adopted by their former foster carers.
A payment of £250 is paid in respect of any child who meets eligibility for the initial placement grant.
Regular Financial Support
Regular financial support is only payable for children who meet eligibility criteria (above).
Adopters who meet this criteria and wish to be assessed for the provision of regular financial support must complete a financial assessment form (see Appendix 2: Financial Assessment). As part of this a welfare rights check must be made to ascertain that adopters have applied for all the benefits they are able to claim.
The completed financial assessment form will determine whether the adopters have disposable income or not.
In circumstances where adopters meet the eligibility criteria and have no disposable income following the financial assessment, the Head of Service, can recommend regular financial payments.
These payments will be equivalent to the maintenance allowance paid to foster carers for the age band of the child. Child Benefit to which an adoptive child is entitled will be deducted from the maintenance allowance. This will determine the final regular payment to be made to the adopters.
Adopters will be required to inform the local authority of any significant changes in their financial arrangements. In these circumstances there will be a new financial assessment form completed.
Adopters will be asked to complete a financial assessment form on at least an annual basis and a continuation of the payment of regular financial support will depend on this assessment identifying that the family have no disposable income.
The local authority for the child is responsible for regular financial support throughout the child's upbringing when this has been agreed before the Adoption Order is made.
In circumstances where it is considered necessary in the best interests of the child, the need for financial assessments can be waived by the Assistant Director (Children's Services).
Additional assessed needs - for eligibility criteria, these are agreed on an individual specific basis.
Additional financial support will be agreed when a case is clearly made that this is essential to making the placement possible or to prevent its breakdown, and additional needs are directly beneficial to the child as part of the adoption support package and where it is in the interests of a child's welfare.
Agreement to the payment for additional assessed needs must be authorised by a Head of Service in Children's Services. These payments will normally be one-off payments or for a very short period of time. When the need no longer exists the payment must stop.
In cases where there is a request for financial help to change or adapt a property (for amounts more than £10,000) full details of the assessment of the child and the financial circumstances of the adopters must be provided for the Assistant Director, Children's Services to reach a decision about support. In these circumstances a contract should be set up to provide financial protection to the local authority if the placement breaks down.
The local authority for the child is responsible for additional assessed needs for a period of three years after the Adoption Order is made. After this time the local authority where the adopters reside becomes responsible for costs of additional assessed needs.
In all cases involving financial support the Proposal for Financial Support form (Appendix 3: Proposal for Financial Support of an Adoption Support/Special Guardianship Plan for a Looked After Child) together, when appropriate, with the Financial Assessment form (Appendix 2: Financial Assessment) should be completed and forwarded to the Finance Section, 1st Floor, Town Hall, Bolton and subsequently to the Head of Service for agreement. When payments are agreed the Finance Section will send the adopters/special guardians a Notification Form (Appendix 4: Notification to Adoptive Parent/Special Guardian of the Payment of Financial Support) which must be signed and returned.
Special Guardianship Orders have been introduced under the Children Act 1989 and subsequently the Special Guardianship Regulations 2005, which came into force on 30 December 2005.
Special Guardianship provides an alternative legal status for children which offers greater security than long term fostering, but without the absolute legal severance from the birth family of an Adoption Order. Special Guardianship provides legal permanence for children for whom adoption is not appropriate and gives their carer(s) clear responsibility for all aspects of caring for the child and for taking decisions to do with their upbringing. The child is no longer Looked After by a local authority.
In a similar way to adoption allowances, the regulations recommend that local authorities support special guardians in appropriate circumstances financially.
Special guardianship allowances and payments can only be made in circumstances where a child is subject to an interim or full Care Order or Accommodated under Section 20 of the Children Act 1989. They can also be considered for carers who are looking after the child as a direct alternative to coming into care.
Where it is necessary to ensure that a special guardian can look after the child.
Where the child needs special care which requires greater expenditure than would otherwise be the case because of illness, disability, emotional or behavioural difficulties or the consequences of past abuse or neglect.
Where the local authority considers that it is appropriate to contribute to any legal costs including court fees of a special guardian or prospective special guardian.
Where the local authority considers it appropriate to make a contribution to the expenditure necessary for the purpose of accommodating and maintaining the child, including provision of furniture, domestic equipment, alterations and adaptations to the home, provision of means of transport and provision of clothing, toys and other items necessary for the purpose of looking after the child.
Regular financial payments can be paid in cases where criteria (above) are met and the financial assessment shows no disposable income.
The same arrangements and the same financial assessment as described above for adoption allowances will be made.
In circumstances where it is thought necessary in the best interests of the child, the need for financial assessments can be waived by the Assistant Director (Children's Services). The Special Guardians will then receive the maintenance allowance minus Child Benefit. The Assistant Director can also use discretion to decide whether birthday, Christmas, festival and holiday payments continue, based on the social worker's assessment.
As special guardians are entitled to claim child benefit, the equivalent amount is always deducted from the special guardianship allowance. It is Bolton's policy that child benefit should be deducted in these cases, as otherwise special guardians who are working or on low incomes (and not entitled to income support) would be financially penalised.
Specific discretionary payments can be made where criteria are met (above). The arrangements for making these payments and delegated authority are the same as described above for additional assessed needs for adoptions.
In all cases involving financial support the Proposal for Financial Support form (Appendix 3: Proposal for Financial Support of an Adoption Support/Special Guardianship Plan for a Looked After Child) and Financial Assessment (Appendix 2: Financial Assessment) when appropriate must be completed and forwarded to the Finance Section, 1st Floor, Town Hall, Bolton and subsequently to the Head of Service for agreement. When payments are agreed a Notification Form (Appendix 4: Notification to Adoptive Parent/Special Guardian of the Payment of Financial Support) will be forwarded to the adopters/special guardians by the Finance Section. This must be signed and returned.
The Adoption Support Regulations 2005 and the Special Guardianship Regulations 2005 recommend that local authorities agree special transitional arrangements for foster carers who are applying to become adopters or special guardians of children they are caring for.
The principle for recommending transitional arrangements be set up relates directly to the fee (reward or re numeration) element of foster carer payments, and only relates to this part of the payment.
Provision of a regular financial payment at the maintenance level (excluding Child Benefit) has already been covered and eligibility criteria and the financial assessment required described in Section 3, Adoption Allowances and Payments and Section 4, Special Guardianship Allowances and Payments.
Any transitional payment is for a maximum of 2 years. The clear principle in recommending a two-year transitional period is to give foster carers a period of time to adjust to losing the fee element involved in caring for the child.
To qualify for a two-year period of transitional financial support the following criteria must be met:
The applicants are approved foster carers for the Department.
They are applying to adopt their former foster child or become a special guardian to that child.
They meet the eligibility criteria for regular financial support for adoptive parents (above) and in the case of special guardians the criteria for regular financial support (above).
They are foster carers who receive a fee element already in place in relation to their foster care of the child.
When the eligibility criteria is met, the foster carer fee for the child will be paid at the full rate for two years after the making of the Adoption or Special Guardianship Order.
Exceptional circumstances.
- The regulations recommend consideration be given to continuing with the fee or part of the fee payment to former foster carers who become adopters or special guardians in "exceptional circumstances".
- These are not defined and in cases where this is proposed, the Head of Service will present the case to the Assistant Director of Children's Services for decision as to the continuation of the fee and the arrangements for this taking place.
Any proposal for financial support during transitional arrangements must be included in the Proposal for Financial Support form (Appendix 3: Proposal for Financial Support of an Adoption Support/Special Guardianship Plan for a Looked After Child) and forwarded to the Head of Services, Children's Resources. When financial support is agreed the Finance Section will send out a Notification Form (Appendix 4: Notification to Adoptive Parent/Special Guardian of the Payment of Financial Support) to adopters/special guardians. This should be signed and returned.
Residence Order allowances can be provided by local authorities to provide regular financial support to children who are the subject of such Orders.
Residence Order allowances can be paid in circumstances where a child is subject to a Care Order or Accommodated under the Children Act 1989 and their foster carers change their legal status by securing a Residence Order.
They can also be paid to carers who are identified as part of the Public Law Outline process where children are living with family/friends as a direct alternative to being admitted to care. This would be in cases where the family have received a final letter and a family group meeting has taken place, which identifies the carers.
In these circumstances, the applicants for an allowance must complete the same financial assessment form (Appendix 2: Financial Assessment) as for adoption or special guardianship allowances. If the financial assessment shows that the family has no disposable income, then provision of a Residence Order Allowance can be agreed by the Head of Service.
The level of payment will be the maintenance rate for the age banding of the child as provided for fostered children minus Child Benefit.
In circumstances where it is considered in the best interests of the child, the need for financial assessments can be waived by the Assistant Director (Children's Services). In exceptional circumstances the Assistant Director can also use discretion to decide whether birthday, Christmas, festival and holiday payments continue based on the social worker's assessment of need.
Everyone receiving regular payments will be required to complete the financial assessment form on an annual basis unless it has been agreed that financial assessments are waived by the Assistant Director, Children's Services.
All carers are required to inform the Local Authority of any change in circumstances and specifically if the child is no longer resident. Special Guardians are required to inform the Local Authority of any changes to their financial circumstances or change of placement. These changes will trigger a review of the payments that are made and the level of payment may change as a consequence of this review. A change of placement will mean the payments will cease from the date that the child or children or young person moves.
In circumstances where a Special Guardian does not notify the Local Authority that a Special Guardianship placement has ceased and financial support payments continue, the Local Authority reserves the right to take appropriate legal measures to recover any overpayment.
The Annual Review of Financial Support form (Appendix 5: Annual Review of Financial Support) will be forwarded in all cases.
Monitoring through home visits will be undertaken as deemed appropriate and in all cases where the annual financial assessment is not returned.
When allowance changes a Notice of Proposal to Vary on-going Financial Support (Appendix 6: Notice of Proposal to Vary Financial Support) will be sent.
Foster carers receive allowances, fees and other additional payments for children in placement until the child reaches the age of 18 years. However, the duties of the Local Authority are extended in relation to Former Relevant Young People who inform the Authority of their wish to take up a programme of full time further or higher education after the age of 18 and under the age of 25. The duties of the Authority subsist for as long as the young person pursues the programme of education or training in accordance with the Pathway Plan.
- Local authorities can continue to give assistance by contributing to expenses for a young person to continue in education/training;
- This can be through helping with living expenses near to where they receive education/training or making a grant to enable expenses connected with education/training to be met.
The local authority can also assist with costs of vacation accommodation.
Allowances will cease in all other cases:
- Where the income of the carers rises above the level at which they qualify, unless the need for regular financial assessments has been waived;
- If the child ceases to have a regular home with the carers;
- For children subject to Residence Orders when this Order expires when the child attains the age of 16 or completes full-time education (unless in exceptional circumstances e.g. children with disability and the Order has been made to run beyond the child's 16th birthday);
- For adoption and special guardianship allowances when the child starts work or qualifies for a place on a Government training scheme, or qualifies for benefits in their own right;
- For adoption and special guardianship allowances when the child reaches the age of 18 unless continuing in full time education or training, when it may continue until the end of the course or training they are then undertaking.
Last Updated: December 12, 2023
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