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Content

1. Introduction and Principles of Payments Made
2. Finance for Children and Young People Living at Home On Care Orders Under 16
3. Finance for Children and Young People Living at Home who were Section 20 Under 16
4. Finance for 16 / 17 year old Young People Living at Home on Care Orders
5. Finance for 16 / 17 year old Young People Living at Home who were Section 20
6. Citizen's Advice Benefit Advice and Quoted Regulations

1. Introduction and Principles of Payments Made

Children’s Social Care should ensure the financial independence of families and recognise that the primary source of financial support to families should be through their own resources or through other appropriate agencies of state support such as Department of Works and Pension or tax system where possible.

It is not the role of the Children’s Social Care to provide income maintenance for families unless required to do so through the restriction of benefit entitlement due to a young persons’ looked after status.

Payments / Allowances made to Foster Carers and Friends & Family Carers by the local authority, are made to  reimburse carers for the financial cost of looking after a Looked After Child. This financial support / reimbursement can only come through the local authority.

The rules relating to benefit entitlement for looked after children can be quite complex – This guidance tries to simplify this and details the different circumstance that present

What practical assistance and services that are available from Children’s Social Care can be complex and is dependent on a young person status as defined by the Children Act 1989 (CA 1989) and Children Leaving Care Act 2000 (CLAC 2000).

2. Finance for Children and Young People Living at Home on Care Orders Under 16

The family of a child or young person under the age of 16  who lives or returns to live at  home on a care order is entitled to the same welfare benefits as any other family.

No other income maintenance financial support should be provided by Children’s Social Care, as this should be provided through the benefit system as appropriate. This is based on the principles as set out in the introduction

When a looked after young person returns home from care some short-term, time limited financial support may be necessary during transition. This may be whilst benefits are being obtained, but one should bear in mind that these benefits will be  backdated to the start of claim. Any short term financial support  should be contained in the support / care plan for that young person / family and Placement with Parent Regulation assessment.

Only the Child Tax Credit element may need to be provided by Children’s Social Care for a limited period of time until full benefits are received.

Family Welfare Benefits Entitlement:

• Income Support
• Child Tax Credit (CTC)
• Child Benefit   

For parents in receipt of a salary - any additional financial  support must be  assessed and linked to any actual loss - consult with LCS money advice.

• Wages
• Working families Child Tax Credit
• Child Benefit   

3. Finance for Children and Young People Living at Home who were Section 20 Under 16

The same rules apply as for detailed in Section 2, Finance for Children and Young People Living at Home on Care Orders under 16.

4. Finance For 16 / 17 year old Young People Living at Home on Care Orders

The rules relating to benefits entitlement for 16/17 year olds are complex. There is a complex interaction between the benefit regulations and guidance, the various ‘care’ status of a young person under Children Act 1989 and the Leaving Care Act 2000. Different rules apply dependent on the status of a young person.

However, young people 16/17 who are on care orders are classed as eligible under the Leaving Care Act 2000 and are not entitled to claim benefits (JSA) in their own right.

Generally, any young person 16/17 who lives at home is required under benefit rules to be involved in some type of activity (education or employment). Ongoing welfare benefit financial support is dependent on this. Therefore 16 / 17 year olds can claim JSA – but have to fulfil the requirements of seeking work or undertaking some activity or their Job Seekers Allowance (JSA) will stop.

The Local Authority should have the same expectation of young people who are living at home.

To reiterate, young people who are on Care Orders are not entitled to JSA benefit as they are classed as Eligible under the Leaving Care Act 2000 and this precludes them from claiming benefits - therefore - if a young person is living at home the Leaving Care Service should provide short term support equivalent to JSA rates with the expectation that the young person will be in some form of activity.

If a young person is in full time education or training then no financial assistance is required from the local authority as the family themselves can claim the following:

• Income support
• Child Tax Credit
• Child Benefit

And the young person may be able claim:

• Education Bursary (from their college)

If the parents / family are working then any financial assistance would be by assessment taking account of the family income and any existing benefit entitlement:

• Wages
• Working families Child Tax Credit 
• Child Benefit 

Any other assistance would need to be detailed in the young person  pathway plan but would need to be consistent with the principals set out in the beginning of this guidance.

For the duration a young person is on a Care Order, even though placed at home, they will be classed as eligible as defined in the Leaving Care Act 2000.

When a care order is revoked Eligible status ends, however, or a six month period after revocation of the care order  the young  person will be class as ‘Relevant’ under the Leaving Care Act 2000.

After this six month period the young person’s relevant status ends and they then become qualifying under the Leaving Care Act 2000.

Should the situation at home break down before the six month period, the young person would again become Eligible if they returned to care with all the entitlements of a looked after child.

5. Finance For 16 / 17 year old Young People Living at Home Who Were Section 20

If a 16 / 17 young person looked after under Section 20 CA 1989 returns to live at home - they cease to be looked after and eligible under the CLCA 2000.

For a six month period after they return home and / or since their looked after status has ended - the young person will be class as ‘Relevant’ under the Leaving Care Act 2000, and after that six months they become a qualifying young person under the Leaving Care Act 2000

Young People who are Relevant are also precluded from claiming benefits therefore for that period - if the young person is not at college or in employment, financial assistance may be need for that period.

If in full time education, no financial assistance is required from the Local Authority on an ongoing basis as the family can claim welfare benefits.

• Income support
• Child Tax Credit
• Child Benefit  

And the young person can claim:

• EMA   

If Working this is:

• Wages
• Working families Child Tax Credit
• Child Benefit   
• EMA

The Leaving Care Service (Citizen’s Advice) Money Advice Service should be consulted to establish exact entitlement and benefits as this does depend on family circumstance.

Any other assistance will need to be detailed in the young Person’s pathway plan, but will need to be consistent with the principles set out in the beginning of this guidance.

If the return home breaks down within a six month period, the young person will revert to being an eligible young person, be there after they become qualifying.

6. Citizen's Advice Benefit Advice and Quoted Regulations

Advice and Quoted Regulations

Child Benefit

In respect of child benefits that if a child is placed with its own family and spends at least one day = two nights, CPAG Chapter 4 pages 65 ,71-73 state that the parent is not excluded from entitlement to this benefit. (Regulation 16(b)(iv Child Benefit Regulations 2006). (Citizen Advice specialist support service).

Child Tax Credit / Working Person Tax Credit

A parent with whom a child in care is placed by the social services is normally living with that parent and is therefore responsible for a child and that the child is not included in any of the exclusions that could apply. The parent then in these circumstances would be entitled to claim this benefit. CPAG Chapter 48 pages 1237 - 1243.

P452 of Social Security Legislation Volume IV referring to Rule 1 in Regulation 3 of the Child tax credit regulations. Rule 4 of regulation 3 of the Child tax credit Regulations 2002 on p450 of Volume IV (ibid) and the commentary on p454. ). (Citizen Advice specialist support service).

TEST: - For child tax credit the first step is to assess if the child can be treated as normally living with the parent. This rule has been inherited from Working families tax credit and family Tax credit rules. It was judged to be the person who could show had the majority care of the child that was relevant in those regulations. Tax Credit test see p452 of Social Security Legislation Volume IV referring to Rule 1 in Regulation 3 of the Child tax credit regulations. The exclusions on p1241 then need to be checked and as long as the child is no longer in funded accommodation etc then Child tax Credit can be paid for the periods they stay with their parents. The relevant law is contained in Rule 4 of regulation 3 of the Child tax credit Regulations 2002 on p450 of Volume IV (ibid) and the commentary on p454.). (Citizen Advice specialist support service).

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