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3.4.15 Adoption Financial Support Scheme

SCOPE OF THIS CHAPTER

This chapter should be read in conjunction with Adoption Support Services Procedure.

This is a new chapter for January 2011

Contents

1. Introduction
2. Legal Framework
3. Policy
4.  Procedure for Assessing Financial Support
  4.1 Circumstances in which financial support is payable
  4.2 Types of Payment
  4.3 Assessment and approval of financial support 
  4.4 Summary of financial support assessment process
  4.5 Approving financial support
5. Review of the Adoption Allowance
6. Discontinuation of allowances
7. Suspension of Allowances
8. Conditions
9. Representation and complaints
  Appendix 1: Means Test for calculating Adoption Financial Support letter
  Appendix 2: DCSF Standardised Means Test
  Appendix 3: Notification of Adoption Financial Support payment letter and acknowledgement
  Appendix 4: Lambeth Adoption Allowance Review
  Appendix 5: Review of Adoption Allowance Form
  Appendix 6: Flowchart of Adoption Financial Support Requests


1.  Introduction

The purpose of this policy is to outline the Council's Adoption Financial Support Scheme. Financial support is paid by the Lambeth Children and Young People's Service (CYPS). 

This document forms part of the Council's Adoption Procedures. This policy should be read in conjunction with the Adoption Support Services Policy, which provides an overview of the broader support scheme available to adoptive placements under the Adoption Support Services Regulations 2005. 

This scheme applied for all financial arrangements from 01/04/2010.

It is not retrospective to any arrangements entered into prior to that date.


2. Legal Framework 

The Adoption and Children Act 2002 provided a major overhaul of adoption legislation by modernising the entire legal framework for domestic and inter country adoption. A key provision of the act was a new regulatory structure for adoption support services which placed a duty on local authorities to assess the need for adoption support services for adoptive families and others. The Adoption Support Services Regulations 2005 specify the conditions for providing adoption support services including the provision of financial support.  In summary the provisions for financial support include:

  • Reg 8 outlines the circumstances in which financial support can be paid
  • Reg 9 limits the arrangements for providing remuneration to foster care placements to only those transitioning to adoptive placements; and for a period of two years. 
  • Reg 10 specifies the circumstances where an adoption allowance may be paid; and in all other cases by a single payment.
  • Reg 11 specifies when financial support arrangements should cease
  • Reg 12 specifies the conditions for which the adoptive parent must agree before an adoption allowance is paid.
  • Reg 15 specifies the information that must be taken into the account when undertaking an assessment of a persons need for financial support. In particular it stipulates the circumstances where means testing must be undertaken and when it is within the discretion of the Council to decide if means testing is appropriate.
  • Reg 20 specifies the arrangements for reviewing an adoption allowance


3. Policy

Lambeth Council will provide financial support to an adoptive parent or prospective adoptive parent, for the purpose of supporting the placement of the adoptive child or the continuation of adoption arrangements after an adoption order is made. 

Eligibility for financial support will be based on an overall assessment of the child and adoptive family's support needs undertaken using the Framework for the Assessment of Children in Need and Their Families and related practice guidance Adoption Support Services Procedure

Financial support may be paid as an allowance, if it is provided to meet a need which is likely to give rise to recurring expenditure; otherwise it may be paid as a single payment, or in installments following agreement between Lambeth and the adoptive parent.  

Lambeth will use the DCSF Model Means Test to determine the level of financial support provided. 

Lambeth will undertake an assessment of support needs in accordance with the Adoption Support Services Procedure.  This includes the undertaking of an assessment at the request of an adoptive parent, after the granting of an Adoption Order, if the adoptive parent feels there have been significant changes to a child's needs and circumstances or their own financial circumstances. 

Any variations to the original 'Lambeth Adoption Allowance Scheme' will not adversely affect existing adoptive placements, or prospective adopters, where an adoption allowance has already been agreed.


4. Procedure for Assessing Financial Support 

4.1 Circumstances in which financial support is payable

Following an assessment of support needs, consideration for financial support will be given under the following circumstances: 

  1. Where it is necessary to ensure that the adoptive parent can look after the child. 
  2. Where the child needs special care which requires greater expenditure of resources because of illness, disability, emotional or behaviour difficulties, or the continuing consequences of past abuse or neglect.  Payment under this category is intended where the child's condition is serious and long term
  3. Where it is necessary for Lambeth Council to make any special arrangements to facilitate the placement or the adoption because of:
    1. The age or ethnic origin of the child, or
    2. The desirability of the child being placed with the same adoptive parent as his brother or sister (whether of full or half-blood) or with a child with whom he previously shared a home. 
  4. Where support is needed to meet recurring costs in relation to contact
  5. Expenditure on legal costs, including fees payable to a court in relation to an adoption (in consult with Lambeth Legal Services)
  6. Expenditure necessary for the purpose of accommodating and maintaining the child, including the provision of furniture and domestic equipment, alterations to and adaptations of the home, provision of means of transport and provision of clothing, toys and other items necessary for the purpose of looking after the child. 

4.2 Types of payment

Adoption allowances

Where the Adoption Support Assessment identifies a support need that requires ongoing financial expenditure, consideration will be given to paying the adoptive parent an adoption allowance.  

Lambeth will use the DCSF Standardised Means Test to determine the level of financial support provided to each applicant where an adoption allowance will be paid.  

If there is disagreement between the family and the Head of Service as to the level of adoption allowance to be paid, the case will be referred to the Divisional Director Social Care to make the final decision.

Single payments

Single payments of financial support may be provided in cases where the identified need does not require ongoing expenditure. Single payments can be one off payments or paid by installment where the Council and adoptive parent agree. 

Remuneration for former foster parents

Financial support will be paid to foster carers in the form of 'remuneration' in the following cases:

  • Where the decision to include it has been made before the adoption order is made and the support assessment considers it to be necessary
  • Where the adoptive parent has been a local authority foster parent to the child and they received remuneration in their foster care payments whilst fostering the child. 

The remuneration element of the financial support will end after two years from the adoption order except in exceptional circumstances with the agreement of the Assistant Director, Multi-Agency Children Looked After and Corporate Parenting.

The remuneration element will only be payable where it has been agreed by the Assistant Director, Multi-Agency Children Looked After and Corporate Parenting that adoption through the foster carers was the only practicable way to achieve permanence for the child. For example, where the proposed adoption is for a child where adopters could easily have been identified, the remuneration element would not be payable.

For foster carers from independent fostering agencies, the overall payment for the first two years would be the amount they receive from their agency. There will be no payment of agency fees.

Child Benefit and Child Tax Credits will be deducted in these two years.

After two years the Adoption Support Services Assessment will be used to determine eligibility for an adoption allowance.

4.3 Assessment and approval of financial support 

Assessment

The need for financial support will be determined as part of the Adoption Support Services assessment (refer to Adoption Support Services Procedure), from which a support plan is devised.   The assessment is carried out under the Framework of the Assessment of Children in Need and their Families and related guidanc Adoption Support Services Procedure.  This includes providing the prospective adopter with a copy of the draft support plan and an opportunity to comment on the draft plan before it is submitted to Panel. 

In determining the level of financial support to be paid, Lambeth must take account of any other grant, benefit, allowance or resource which is available to the person; as financial support paid under the terms of the Adoption Support Regulations cannot duplicate any other payment available to the adoptive parents.  To assist with this, Lambeth Adoption Team will provide applicants with a leaflet which outlines all benefits and entitlements available; as these will be taken into account when considering the amount of financial support entitlement. The pamphlet includes advice on the following: 

  • Incapacity benefit
  • Statutory maternity, paternity and adoption pay or allowances
  • Bereavement benefits
  • Working tax credits
  • Child tax credit
  • Income Support
  • Housing Benefit
  • Child Benefit

Calculating the amount to be paid and deciding if the payment should be means tested

In deciding how much to pay an adopter, either through an allowance or single payment, the regulations require Council to consider whether a means test should be applied. The regulations prescribe the circumstances where means testing cannot be applied and those circumstances where it is within the discretion of Council to decide if means testing should be undertaken. 

Where ongoing financial support has been agreed through the payment of an adoption allowance, the levels will be related to the Lambeth Fostering allowances. These are themselves related to the recommended levels of fostering allowances set out by Fostering Network.

Any Child Benefit and Child Tax Credits received for the child will be incorporated into the Means Testing.

The basic level of allowance prior to means test is set out below in Table 1:

Table 1: Basic Level of Allowance 2010-11 prior to Means Test

  Aged 0-12 years Aged 13+ years
Basic Allowance £174.19 per week £230.76 per week

To assist with the operation of means testing, the Department of Children Schools and Families have developed a model means test to calculate payments. 

As a general rule, Lambeth Council will make a decision about means testing on a case by case basis, except in cases where the family is in receipt of Income Support where means testing will not be undertaken as recommended by the DCSF Model.  Where families are in receipt of Income Support they will be paid the applicable maximum payment. 

Table 2 below provides a guide to means testing.   

Table 2:  Guide to Means Testing

No Means Testing Discretion to Means Test
  • Legal costs
  • Costs associated with introducing an adoptive child to his adoptive parents
  • The initial costs of accommodating an adoptive child - for example a 'settling-in grant' that is often paid when the child is first placed with the family.  It is not expected that this payment will be means tested, however means testing may be considered on contributions such as an adaptation to the home. 
  • Recurring costs in relation to travel expense for contact -  for example, in order to underline the value of and facilitate contact for an adoptive child with a sibling by birth, it can achieve this by not means testing payments to support this
  • Any special arrangements or special care referred to in Section 4.1 (b&c(i,ii) - In order to guarantee a financial package for a particular child who may be difficult to place to facilitate their adoption.
  • Where consideration is being given to including an element of remuneration in financial support payments to ex-foster cares - in order to maintain the amount paid to a foster carer who has gone on to adopt for the duration of the transitional period (two years unless the local authority considers the case to be exceptional).

4.4  Summary of financial support assessment process

Action Person responsible

The Social Worker assesses the need for financial support as part of the Adoption Support Assessment.  The assessment will identify: 

  • The category of need for which financial support is required
  • The type of financial support that would best meet the need e.g. ongoing expenditure or a singe payment.   
  • Whether or not the amount should be means tested
Social Worker
Where a means test is required, the Social Worker will liaise with the Access to Resources Service to arrange for a DCSF means test to be sent to the adopter, with a copy of the leaflet outlining benefits available.  Access to Resources Service
The Access to Resources Service will provide the results of DCSF means test to the Social Worker who includes the results of the means test and the proposed payment rate in the draft Adoption Support Plan. Access to Resources Service
The Social Worker completes the draft Adoption Support Plan for interim approval by the Adoption Team Manager and Head of Service and sends the assessment to the adopter for their input. Social Worker
The Social Worker discusses any comments received from the adopter with the Adoption Team Manager.  The Social Worker finalises the Adoption Support Plan for approval.  Social Worker, Team Manager


4.5 Approving financial support

Approval for financial support will be made as part of the Adoption Support Plan approval process. 

In some cases the Adoption Team Manager may authorise the following expenditure as a care package prior to the adoption support plan being authorised:

  1. Reasonable amount as a settling in grant to enable the purchase of essential items of equipment which the family could not necessarily be expected to have or afford to purchase, for example safety gates, push chair etc ( NOT: beds, bedding or replacement clothing).
  2. Reasonable expenses necessarily incurred by the prospective adoptive parent during introductions to the child, for example the cost of overnight accommodation, mileage or transport fares to visit the child etc.
  3. Reasonable legal fees necessary to advance the process of adoption in consultation with Lambeth Legal Services, subject to the Legal Aid eligibility of the prospective adopters.

All other payments, for example requests for vehicles or major housing works, will be considered using Adoption Support Services approval process.  

Following approval of the Adoption Support Plan, the social worker will send a letter ( Notification of Adoption Financial Support payment letter and acknowledgement) to the applicant requesting that they sign the letter, accepting the terms and conditions of the offer.  The letter must contain the following information:

  1. the method used to determine the  amount of the allowance
  2. the amount of the allowance
  3. the date of the first payment of the allowance
  4. the method of payment of the allowance and frequency with which and the period for which payment will be made
  5. the arrangements and procedures for review, variation and termination of the allowance, see paragraphs below
  6. the criteria which would cause the payment to cease automatically and the prospective adopters responsibility to notify the authority should one of those criteria arise. It should also be indicated that any avoidable over payment made as a consequence of the adopters failing to notify the authority of such changes will be reclaimed
  7. an acknowledgement slip for the prospective adopters to sign stating they accept the   terms and conditions of the offer of financial support.


5. Review of the Adoption Allowance

The annual review of each adoption allowance will be carried out by the Access to Resources Service.  If the Review results in a recommendation for the adoption allowance to be increased, decreased, suspended or terminated, it must be referred to the Adoption Team Manager for consideration as to whether or not a visit to the adoptive family is required; before referring to the Head of Service to make a final decision. 

If the decision about the prevailing rate, or change of rate, is difficult to make, a report will be requested from another professional, e.g. a consultant paediatrician, a psychologist, a person seeing a child on a regular bases.

Once an adoption allowance is agreed the family circumstances can be reviewed at a time other than at the annual review. This is in recognition that from time to time, there may be a major change either in the needs of the child or family circumstances which would have a significant impact on their ability to continue to adequately meet the needs of the child.  This provision is not intended to be used solely to supplement a change in income of the adoptive family.  For example when a child reaches the age of 13, the rates for calculating the allowance will increase, prompting a review.  

If there is disagreement between the family as to the level of adoption allowance to be paid, following the review, the case will be referred to the Head of Service.

The Adoption Panel will receive an annual report of all cases that have been reviewed.  A record of all adoption allowances will be kept at the Fostering, Adoption and Access to Resources Service together with a report of any medical or psychological condition.


6.  Discontinuation of Allowances

An allowance will be discontinued if:

  • The child ceases to have a home with the adoptive parent,
  • The child ceases full-time education and commences employment,
  • The child qualifies for income support or jobseeker's allowance in his own right, or
  • The child reaches the age of 18, unless he remains in full-time education or training, when it may continue until the end of the course or training he is then undertaking.
  • The child marries
  • The review determines that the allowance should be terminated
  • The child dies


7.  Suspension of Allowances

Suspension of an allowance is the most appropriate decision, where the adopters have not provided an annual review statement. In the first instance, suspension will be decided by the Head of Service up to a maximum of 3 months.  Unresolved suspensions beyond the 3 month period will be referred to the Divisional Director Social Care. 

Where an adoptive parent does not provide an annual statement the Council will not suspend the allowance until:

  • The Council have sent the adoptive parent a written reminder of the need to provide an annual statement, and
  • 28 days have expired since the date on which the notice was sent. 


8.Conditions

Where an allowance is to be paid to an adoptive parent/sit will not be paid until each has agreed to inform the local authority immediately if:

  • the adoptive parent changes their address
  • the child dies
  • any of the changes mentioned under discontinuation of allowances
  • there is a change in the adoptive parent/s financial circumstances or the financial needs or resources of the child which may affect the amount of financial support payable to him. 

The adoptive parent/s must confirm this information in writing within 7 days of providing it verbally.  

9. Representations and Complaints

The Social Care Representations and Complaints Procedure will be provided to anyone wishing to make a formal complaint.


Appendix 1: Means Test for Calculating Adoption Financial Support Letter

Click here to view Means Test for Calculating Adoption Financial Support Letter


Appendix 2: DCSF Standardised Means Test

Click here to view DCSF Standardised Means Test


Appendix 3: Notification of Adoption Financial Support payment letter and acknowledgement

Click here to view Notification of Adoption Financial Support payment letter and acknowledgement


Appendix 4: Lambeth Adoption Allowance Review

This form sets out the process for the review of financial support provided to you for (Name of Child) as per the Adoption Support Services Regulations 2005. 

A copy of the  Lambeth Adoption Financial Support Scheme is attached and outlines the way in which payments and allowances are calculated, including the procedures for review of financial support. 

Failure to return the Review Form and Standardised Means Test, within 28 days will result in financial support being suspended.  Suspensions which are unresolved beyond a three month period will be referred to the Head of Service Fostering, Adoption and Access to Resources.      

The review of financial support is undertaken by the Access to Resources Service.  The review may result in the adoption allowance being increased, decreased, suspended or terminated according to the terms and conditions of Lambeth's Adoption Financial Support Scheme.

On receipt of the Review Form and Standardised Means Test a decision will be made about:

  • whether a home visit is required in order to clarify matters with you in person
  • whether a further assessment of the child's special need is needed by another professional
  • whether further evidence is needed about the category under which the allowance has been calculated. 

If you disagree with the outcome of the review, it will be referred to the Head of Service.

If you have any difficulty in completing the attached form please contact. 

Lambeth Adoption Agency
9th Floor International House
Centerbury Crescent
Brixton
London SW9 7QE
Ph:  020 7926 8503


Appendix 5: Appendix 5: Review of Adoption Allowance Form

Click here to view Review of Adoption Allowance Form


Appendix 6: Flowchart of Adoption Financial Support Requests

Click here to view flowchart

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