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3.4.18 Residence Orders Allowances

SCOPE OF THIS CHAPTER

This is a new chapter for October 2011


Contents

  1. Introduction
  2. What is a Residence Order?
  3. When is a Residence Order Appropriate?
  4. Payment of Residence Order Allowances
  5. Procedure for Approval of Allowances
  6. Duration of Allowance


1. Introduction

A key departmental objective is to reduce the need for Children's Services intervention in the lives of children and their families whenever this is consistent with their welfare.

The aim of a Residence Order is to achieve security through legal permanence for a child where it is not possible for them to be adopted or subject to a Special Guardianship Order and is an alternative to the child being Looked After by the Local authority.

To support this objective, all Care Plans for children who are placed with relatives, who are approved foster carers, should always note why a Residence Order or Special Guardianship Order is not thought appropriate and this decision should be re-visited at each Looked After Review.


2. What is a Residence Order?

A Residence Order is defined in Section 8 of the Children Act 1989 as an order making arrangements as to the person with whom a child is to live with. The order normally ends when a child is 16. Following the Adoption and Children Act 2002, the Residence Order can be extended for those who are not a parent of the child to 18. (Section 114).

There are two types of Court proceedings where a Residence Order may be the outcome. They are private law proceedings, e.g. when a marriage ends or parents who live apart cannot agree with whom a child should live, and public law proceedings, where the proceedings involve the Local Authority and the child may become Looked After.

The granting of a Residence Order does not discharge the Parental Responsibility of the child's parents. The making of a Residence Order will however discharge a Care Order.

Local authorities have a discretionary power under the Children Act 1989 to make financial contributions towards the costs of the accommodation and maintenance of a child who is the subject of a Residence Order. There are also certain designated carers i.e. grandparents, existing foster carers, who can automatically apply for an order - others will need permission from the Court.


3. When is a Residence Order Appropriate?

Lambeth will support Residence Order applications if this is part of a Care Plan and fulfils the following criteria:

  1. That the child's welfare is paramount in the chosen option taking into consideration his/her wishes and feelings;
  2. That the prospective carers are empowered and able to take on their role;
  3. That the arrangements minimise the Department's role in caring for the child in so far as this is consistent with the welfare principle.

All proposed placements would need to consider:

  • The needs of the child including his/her racial/cultural and religious and linguistic needs and any other special needs;
  • What assessments or checks are required to be made concerning the proposed carer;
  • The financial arrangements including the ability of the parent(s) and carer(s) to contribute and the duration of any payments and when they need to be reviewed;
  • The level of supervision required;
  • The wishes and feelings of the child, parent and any other person who is considered to be relevant.

Applications for Residence Orders normally follow on from arrangements made with the extended family to care for a child, often as foster carers of children who have been Accommodated.

However situations do arise during Care Proceedings where a Residence Order is recommended and supported by the local authority yet the child is not Accommodated.

Residence Orders should be considered in all cases when an arrangement either formal or informal has been agreed for the permanent placement of a child outside his or her birth family with extended family members where an Adoption Order or Special Guardianship Order is not appropriate.


4. Payment of Residence Order Allowances

Lambeth may make a discretionary contribution to a person in whose favour a Residence Order has been made, except where a residence order is made in favour of a parent. This allowance known as a Residence Order Allowance is seen as a contribution towards the child's maintenance, there should be not be any element of reward in the calculation of the payment. In Lambeth such payments are only made when the child was Looked After by Lambeth immediately prior to the Residence Order being made.

There is no statutory guidance as to the amount. Lambeth, use the basic fostering allowance as this equates to all allowances paid to applicants of looked After children in Adoption Order, Special Guardianship Order or Residence Order's.  See Adoption Financial Support Scheme.

The carers are subject to a financial assessment using the DCSF means Test criteria, with universal benefits such as Child Benefit and Child Tax Credits deducted from the weekly allowance payable. All allowances are subject to an annual review by the Access to Resources Team. (ART)

Lambeth may wish to support carers in applying for Residence Orders when it is consistent with the child's Care Plan. This can include giving financial assistance with costs of applying for the order. This decision should be made based on the circumstances of each case and should be agreed by the Head of Service, Specialist Resources.

Residence Order Allowances will take into account the payment that the carer is receiving prior to the application and the benefits that they will be entitled to once an order is made. For former foster carers their fostering allowance will be maintained for a maximum of two years, with Child benefit and Child tax credit deducted. Following the two year periods the allowance will fall to the basic fostering allowance with child Benefit and Child Tax Credit deducted.

It is important that carers are aware of these requirements and are advised about the level of payments and their responsibilities to provide annual financial statements.

Residence Order Allowance payments are fixed at the point of the agreement and not subject to any subsequent changes in the fostering rates.


5. Procedure for Approval of Allowances

The decision to recommend a Residence Order with a Residence Order Allowance must be reflected in the Child's Care Plan.

The Head of Service, Specialist Resources will agree the Residence Order Allowance. The decision will be based on the report and recommendation of the social worker.

The social worker must complete:

  • A Care package and full report setting out why a Residence Order Allowance is recommended;
  • A completed financial assessment DCSF Means Test. Social workers should ensure that all applicants complete a financial assessment;
  • Other supporting documentation including details of the ongoing needs of the child, any complex legal or contact arrangements etc.
  • Details of the current payments, if any, made to the carers;
  • The carer's bank details to be provided to ART.

Carers who receive a Residence Order Allowance are entitled to Child Benefit and may be entitled to other benefits e.g. Child tax credits, disabled living allowances, family premium child dependency addition (if receiving a state retirement pension) and child support from the parents.


6. Duration of Allowance

Residence Order allowances will be paid for a maximum time period of 2 years post order to enable a family to adjust in this transition period. This can be extended for a specified period with the agreement of the assistant director for looked after children where an assessment of the family and child's circumstances through an support plan evidence this need. Any allowance will not be paid after the age of 16 (18 if the child remains in education) unless terminated in the circumstances detailed below:

  • When the child ceases to have a home with the carers;
  • When the child ceases full time education and commences employment or qualifies for a place on a government training scheme;
  • When the child qualifies for income support or unemployment benefit in his or her own right;
  • When any period previously agreed between the local authority and the applicant expires;
  • If it appears to the local authority that the criteria cease to apply;
  • Where the financial circumstances of the carers change that identify no allowance is payable using the DCSF Means Test criteria.

End