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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
5. Payment and Administration

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. The arrangement becomes a supported lodgings arrangement after the age of 18.

There are circumstances where it is appropriate for the young person to continue to live with their ex carer beyond the age of 18. Where a young person is in education, particularly if s/he is taking exams in the summer after their 18th birthday, foster carers will continue to receive the full carers allowance until the end of the academic year after the young person’s 18th birthday. If the young person is not in education and is remaining with their foster carer, supported lodging rates will commence on their 18th birthday. 

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 Bursary until their 19th year from their school or further education college.

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.

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. The Service Manager of the Leaving Care Service will agree any continuing arrangement with an ex foster carer following a recommendation at the LAC review.

2. Financial Support to Care Leavers

2.1 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.

2.2 Definitions

Reference should be made to the Regulations and Guidance for the Children (Leaving Care) Act 2000 for detailed information of the legal and policy framework. Below is a guide to categories under the Act. It is important to establish which category a young person falls into as the first stage of assessing need for financial support.

Eligible Aged 16 or 17 and currently looked after, either on a care order or accommodated. To be "Eligible", the young person must have been looked after for a period or periods totalling at least 13 weeks since their 14th birthday (this total should include at least one spell of over 4 weeks, but does not include respite care). A young person is also "Eligible" if, having been looked after for three months or more, they are then detained after their 16th birthday either in hospital, remand centre, young offenders' institution or secure training centre. There is a duty to financially support these young people up to the age of 18.

Relevant Aged 16 or 17 and have left care, having previously been in the category of "Eligible". If a person leaves care and returns home for a period of 6 months or more to be cared for by anybody with parental responsibility for them, they cease to be "Relevant". There is a duty to financially support these young people up to the age of 18.

Former relevant Aged 18 -21 (or 24 if in full-time further or higher education), and have left care having been previously either "Eligible", "Relevant" or both. There is a duty to consider the need to financially support these young people.

Qualifying young person (S.24 Children Act 1989) Aged 16 - 21 who are or have been looked after at the age of 16 or 17 but do not come within the categories above but qualify for advice and assistance. There is a power to support these young people with financial assistance, in kind or, in exceptional circumstances, in cash (s24A) to meet their particular needs. Assistance may also be provided in relation to accommodation, education, training or employment up to the age of 21(up to the age of 24 if in education) as agreed in their pathway plan.

Relevant young people The Children (Leaving Care) Act 2000 (referred to as C(LC)Act) amended the Children Act to impose on local authorities the primary income-maintenance role for relevant children and young people (s23B(8)(a)). Note that relevant young people who were looked after under section 20 of the Children Act rather than a care order will no longer be considered relevant if they return home successfully for six months. (If the return home breaks down before they turn 18, they may reacquire the status of relevant child, or if they are re- accommodated under section 20, of eligible child.)

2.3 Disqualification from benefits

Under Section 6 of the Children (Leaving Care) Act 2000 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.

2.4 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.

2.5 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.

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

2.6 Former relevant young people

The Leaving Care Service does not have the primary financial support role for over 18s. 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 can provide assistance particularly relating to education, employment or training or in an emergency. All allowances and payments should be based on an assessment of need and set out in the young person’s pathway plan. The pathway plan should set out any conditions relating to the payments, how they will be made, the frequency and when they will be reviewed.

2.7 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.

3. Financial Support - Principles and Standards

3.1 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, 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.

Different principles apply for young people who live at home and are on care orders (see relevant guidance). The appropriate financial support for families on benefits should be through the Department of Work and Pensions - the normal benefit entitlement route.   It is important any financial support ensures the family's financial independence - the primary source of financial support should remain with the relevant benefits departments.

3.2 Standards

• The Leaving Care Service will provide income maintenance to 16 and 17 year olds 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 undertaken and recorded as to the level of responsibility for each young person
• Every young person should be helped to open a bank account.

4.1 Payment Process

4.2 Payments to Young People

Click here to view Payments to Young People table.

5. Payment and Administration

1. All payments must be agreed by a Manager and will be administered by Business Support. There must be a clear audit trail from agreement to payment.
2. Cash payments should not be used where other methods of payment are possible. Consideration needs to be given to making payments direct into bank accounts, providing a payment card, by Lewisham credit card or by raising an invoice. Business Support has a list of local suppliers willing to accept Lewisham Official Orders.
3. Weekly maintenance will only paid in cash in exceptional circumstances. Most payments will be made directly into bank current (not savings) accounts.
4. Orders for cash must be made by 1pm each Friday for delivery by the following Thursday.
5. Payment requests are made on a Financial Request Form on ICS.
6. Whenever a cash payment is made to any person, a receipt must be obtained. If a member of staff or key worker collects cash on behalf of a young person, that person will also obtain a receipt from the young person when cash is handed over. In these circumstances, this means there is a receipt signed by the member of staff or key worker and by the young person. Business Support will hold both receipts. This ensures a clear audit trail to the young person.
7. Setting Up Home Grants. Most young people claim this grant when they are offered Housing at 18. However, many also want to make purchases before their final move when they are in semi-independent accommodation, particularly, for example, their first TV. Business support will keep an individual record of the amount paid to each young person. Most items should be purchased by non-cash methods.
8. Fares. Young people can be given fares for attending an appointment at 43 Bromley Road, but fares should not be paid to those in receipt of weekly travel passes for college.

End