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Contents

1. Payments to Foster Carers for Young People Over 18
2. Financial Support to Care Leavers
3. Financial Support - Principles and Standards
4. Framework for Making Payments to Care Leavers

1. Payments to Foster Carers for Young People Over 18

Legally a young person cannot be "fostered" after the age of 18, and there is a clear change of status for the carer as the young person becomes an adult. See Staying Put (Section 5, Leaving Care Flowchart in Pathway Planning Procedure) for details of circumstances where those over 18 can stay in a foster placement.

There are circumstances where it is appropriate for the young person to continue to live with their ex carer beyond the age of 18, and although some carers may continue to receive payments from the Leaving Care Service, this is not a fostering allowance. Payments will therefore be subject to a different tax assessment, and if the carer is in receipt of means-tested benefits or tax credits, these could be affected by this additional income.

There are two circumstances when it may be appropriate for a young person to continue to live with their ex foster carer. These are:

Vulnerability.  Where a young person has a deficit in life skills or delayed maturity which relates to an assessed learning or mental health difficulty, and which prevents them living in a independent or semi independent setting, and the young person requires support to achieve the necessary independence skills.

Ex foster carers who support young people who are assessed as vulnerable will be paid at a rate equivalent to the maintenance element of the fostering allowance (See Payment to Young People Table)

Education.  Where a young person is taking a course at school or further education college which will conclude with an examination at the end of the academic year, and a move during the academic year will disrupt the young person's studies.

Ex foster carers who support young people in continuing education will be paid at the Supported Lodgings rate of £150.00 per week.

All young people over 18 should claim benefit where they are eligible and will be expected to contribute towards their keep. Young people continuing in education can claim an Education Maintenance Allowance until their 19th year.

No holiday, birthday or festival grants are payable to carers of young people over the age of 18, and carers will not be eligible for exceptional payments.

Arrangements beyond the young persons 19th birthday will become Supported Lodging arrangements - fostering allowance (See Payment to Young People Table)

Former Relevant young people who are over the age of 21 and who with to take up a programme of full-time Further or Higher Education are entitled to:

• A Personal Advisor;
• An assessment of their needs to determine what (if any) assistance it would be appropriate to provide;
• A Pathway Plan;
• Assistance to the extent that the young person's educational needs require it. The kinds of assistance are: Contributing to expenses incurred by them living near the place where the education is provided or making a grant available to enable them to meet expenses in connection with their education and training.

At the time of the Leaving Care Needs Assessment at age 16, the possible impact of a change at 18 should be considered and discussed with the foster carer, which includes the change of status, payments and responsibility at 18. Decisions in respect of this will be made by the Children’s Placements Panel

2. Financial Support to Care Leavers

Background

Each young person will have a different set of needs and different capacity to manage money. Some may have sources of income of their own, such as employment. In each case, the Leaving Care Service must agree, with the young person, a personal support package and how it is to be managed, with the details recorded in the young person's Pathway Plan.

Definitions

See Section 1, Definitions of Pathway Planning Procedure for Definitions of Eligible, Relevant and Former Relevant Young People.

Disqualification from benefits

Under Section 6 of the C(LC)Act eligible and relevant children are not entitled to Income Support (IS), Jobseeker's Allowance (JSA) or Housing Benefit (HB). Relevant lone parents and young disabled people, however, continue to be eligible for benefits, including IS, JSA and any other benefits due to them because of their disability or parental status, but not HB. Independent advice from a welfare-rights specialist should be sought to assist in potential benefits claims.

Lone parent is defined as "a person who has no partner and who is responsible for, and a member of the same household as, a child or young person." Those defined as disabled include someone who:

• Is entitled to statutory sick pay;
• Is incapable of work because of incapacity;
• Has appealed against a decision that they are not incapable of work;
• Is registered as blind;
• Is in work but because of a physical/mental incapacity their hours or earnings are 75% or less than that of a person without that disability in the same job;
• Is in non-advanced education and because of a severe disability they would be unlikely to get a job in the next 12 months (sch.18 of the IS (General) Regulations 1987).

Receipt of benefits will be taken into account when assessing young person's needs and drawing up their Pathway Plans.

Other 16 and 17-year-old care Leavers who Remain Entitled to Benefits

Young people aged 16 and 17 who are looked after and qualify under s24 (that is, they do not meet the period for eligible or relevant young people) remain entitled to benefits.

In addition to benefits, the Leaving Care Service may provide young people who qualify under s24 with financial assistance, in kind, or, in exceptional circumstances, in cash [s24A] to meet their particular needs. They may also provide assistance in relation to education, training or employment up to the age of 24.

The Leaving Care Service must also assist care leavers who had been looked after by the local authority and are in residential FE or HE by providing vacation accommodation, if needed.

Benefit Rates

Relevant 16 and 17-year-old care leavers are entitled to receive at least the equivalent of the Income Support single higher rate for 16 to 17-year-olds. See Department for Work and Pensions website

Income Support Premiums rates apply to Lone parents and those with a disability.

Former Relevant Young People

The Leaving Care Service does not have the primary financial support role for this group of young people. It is expected that the young person's income should be derived from the same sources as the young person's peers i.e. employment, benefit entitlement, student loans, etc.  However, the local authority has a duty, rather than a power as previously; to provide assistance in kind or in cash in respect of the needs of former relevant children, based on the same considerations set out in paragraph 9.70 of Volume 3 of The Children Act 1989 Guidance & Regulations. Referring to care leavers up to the age of 21, the Guidance advises: "Where a young person has no parent to turn to for help, or where a parent does not have the capacity to provide assistance, it is to be expected that they will turn to the local authority...for such help (i.e., assistance in kind or in cash)."

The Leaving Care Service has a duty to assist former relevant young people with expenses associated with education and training that has been agreed in their pathway plan until they are 21 or until it is completed up to the age of 24.

Former Relevant young people who are over the age of 21 and who with to take up a programme of full-time Further or Higher Education are entitled to:

• A Personal Advisor;
• An assessment of their needs to determine what (if any) assistance it would be appropriate to provide;
• A Pathway Plan.

Assistance to the extent that the young person's educational needs require it. The kinds of assistance are: Contributing to expenses incurred by them living near the place where the education is provided or making a grant available to enable them to meet expenses in connection with their education and training.

The Assessment of Financial Need and Pathway Planning

Regulation 7 of the C(LC)Act places the assessment of financial needs within a wide range of considerations, including the young person's:

• Health and development;
• Needs for education, training or employment;
• Support available from family and others;
• Practical and independent living skills;
• Need for care, support and accommodation.

Local Discretion and Transparency

Local authorities operate within limited resources and competing demands, which they may not always be able to meet in full. Information will be provided to young people setting out what payments will normally provided and how other sources of income are to be treated.

"Accommodation and maintenance are essentials which must always be provided unless the young person's welfare does not require it" (C(LC)Act Guidance). Together with assistance to meet needs in relation to education, training and employment [Reg. 11(1)].

3. Financial Support - Principles and Standards

Principles

Financial support should not provide any incentive for young people to leave care prematurely.

Financial support should link payment levels to young people with the national income maintenance system, i.e. JSA, New deal, Income Support and Housing Benefit.

Financial support should ensure young people are not disadvantaged when they reach 18.

Financial support should be sensitive to the needs of young people with disabilities and disadvantaged groups.

Young people should have increasing control of their personal finance prior to leaving care.

Standards

The Leaving Care Service will provide income maintenance to the appropriate income support level as a minimum requirement.

The payment system will be capable of providing automated payments directly to young people and housing providers.

The Leaving Care Service will provide flexible payment systems to assist young people who cannot manage their own financial affairs.

The Leaving Care Service will provide information to young people setting out the payment system, stating what is available and how and when it will be paid.

Where the Leaving Care Service is providing accommodation, that accommodation will meet satisfactory minimum standards.

Individual payment levels will be clearly set out in Pathway Plans.

The Leaving Care Service will provide preparation groups for young people, which covers preparation for financial independence.

The Leaving Care Service will ensure young people have access to a bank account and will negotiate on their behalf if required.

4. Framework for Making Payments to Care Leavers

The making of payments to care leavers must be informed by the young person's ability to manage their financial affairs and can be considered as a continuum from the care leaver assessed as not ready to manage their own financial resources to a care leaver being able to fully manage on their own. The method of making payments will be assessed and recorded in the Pathway Plan and linked to preparation for independence.

Principles on making decisions relating to the assessment to manage financial affairs

• The highest appropriate level of empowerment will be used;
• A young person should be enabled to move up or down the continuum at their pace;
• The scope for choice will be maximised for all young people;
• An assessment will be carried out at the level of responsibility appropriate to each young person. The reasons for this will be recorded as part of the Pathway Plan and will be kept under Review;
• Every young person should be helped to open a bank account.

Payments to Young People

Click here to view Payments to Young People table.

End