Contact: Sue Kocaman ext: 7173 email: [email protected]

1 Introduction

1.1 This report seeks to inform Members about key matters relating to the performance and development of the Hampshire County Council Foster Care Service, with reference to the recent statutory inspection and reviews on a range of important aspects of the Social Services Department's family placement responsibilities overall.

1.2 A number of different areas are critical to the Local Authority being able to meet its statutory requirements and service standards as set out and maintained by central government in respect of children looked after in general, and regarding family placement in particular. This report focuses on Hampshire County Council's own fostering service (sometimes referred to as the `in-house' service), as distinct from fostering services provided by the independent sector (from private or voluntary not-for-profit organisations), generally called Independent Foster Agencies (IFA's), from which HCC Social Services in common with other local authorities, purchase placements when necessary.

1.3 A summary is presented which describes work which has been underway since the remodelling of the Social Services Department, which included a reorganisation of the family placement service, which in turn drew on inspection by the Social Services Inspectorate in 1999/2000.

1.4 The most recent statutory Inspection took place in February this year with its Report published in April, followed by the Social Services Department's Action Plan. The 2004 Annual Inspection and Action Plan have been made available in the Members' Room.

1.5 The Statement of Purpose is a key requirement for all registered fostering agencies; a revised Statement is included in this report. (Appendix 1).

1.6 A Children's Guide which sets out what children can expect whilst in foster care, approved by the Executive Member for Social Care in December 2003, is included for Members information.

1.7 Officers are currently drawing up a comprehensive action plan which proposes additional investment in Hampshire's own fostering services by way of a response to the findings of the annual inspection and the other reviews, as well as to wider performance and financial information about growing pressures on the Department's services for children looked after, whereby significant improvements can be secured.

2 Background

2.1 The Government has increased significantly its scrutiny of family placement arrangements overall, adding new legislation and regulations to existing requirements. Local authority fostering services, such as the Hampshire Foster Care Service, and those in the independent sector, are subject to regular Government inspection in order to establish if the National Minimum Standards are being met. Legislation covering these arrangements is to be found in the Care Standards Act 2000, the Fostering Services Regulations 2002, as well as recent amendments to the Children Act 1989. Inspections which have been carried out by the National Care Standards Commission, will henceforth become the responsibility of the new Commission for Social Care Inspection (CSCI).

2.2 The recruitment of foster carers to Hampshire's Foster Care Service continues to be an area of major concern. Necessary improvements in, or the continued achievement of, government key targets could be jeopardised unless key elements in the service can be strengthened. A common group of key messages has emerged from the service reviews commissioned over the last eighteen months which will inform plans for improvement.

2.3 The service reviews include:

2.3.1 `Priorities for Changes for the Foster Care Service', audited against the UK National `Standards for Fostering'. Carried out by an independent consultant.

2.3.2 Internal audit of foster carer payments, carried out in conjunction with County Treasurer's Financial Services Unit in Social Services.

2.3.3 Review of management arrangements in the County Family Placement Service by the Performance Management Unit in Social Services.

2.3.4 `Review of HCC In-House Foster Care Provision' by the County Treasurer's Consultancy Service.

2.4 Information has also been used from the earlier Best Value `Review of Services for Looked After Children', as well as the most recent Inspection by the NCSC.

2.5 The scope of the reviews, all of which now include action plans, have addressed the key aspects - structure, management and support arrangements, payment mechanisms, staffing, premises, and quality of care, as well as a an in-depth analysis of the in-house fostering service.

2.6 It has thus been possible to build up a comprehensive picture with which to inform development of Hampshire's Foster Care Service which is a key part of the complex family placement system overall.

2.7 The Hampshire Foster Care Service:

2.7.1 There are 450 foster carers registered with the Hampshire Foster Care Service, and some 110 Family Link scheme carers. Approximately 10% of foster carers are not actively caring for a child at any one time due to personal or family circumstances, which is in line with the national position.

2.7.2 Some 550 children looked after are placed with Hampshire foster carers at any one time.

2.7.3 Another 120 children looked after are placed with independent fostering agencies (IFA's).

2.7.4 The current position in Hampshire in terms of in-house vis-à-vis external placements is similar to that experienced by other local authorities, as is the trend; which has seen in recent years a decrease in capacity of the Hampshire service and an increase in placements made in the independent sector. The number of children looked after has not increased significantly nor has the rate in comparison with other similar local authorities.

2.7.5 There are about 120 children receiving regular respite care with Hampshire's Family Link service.

2.7.6 In the last year the service has recruited 138 new foster carers, a combination of `stranger' (i.e. unrelated) foster carers and `Family & Friends' foster carers. There are currently 48 assessments underway, not all of which will proceed to full approval at Panel. In addition 97 foster carers ceased fostering for a number of reasons, and 12 foster carers were `lost' to the service by adopting a child in their care; a good outcome for the child, and a continuation of last year's trend.

3 The Annual Inspection

3.1 The dates of the key stages of the inspection are listed above in Section 1.

3.2 In the Inspection Report the NCSC concluded that the "Local Authority fostering service satisfies the regulatory requirements".

3.3 In general terms the Inspection confirmed the steady progress being made by the Department to develop its fostering service, which reflects the efforts, and practice standards and commitment by foster carers, practitioners and managers, as well as the support of elected Members.

3.4 There were no serious matters or shortcomings (termed "not substantial" or "substantial" in the Regulations) which will need to be reported upwards to the Secretary of State.

3.5 In its Report the NCSC inspectors recorded that they had "found evidence of good practice or service development" in eight areas or aspects. These were in summary: training of foster carers, approval and support to family and friends foster carers, and recruitment strategy and methods.

3.6 The NCSC went on to identify seven areas or aspects of the service which needed further development, whilst not causing serious concerns to the service as a whole. These related to panel membership, support to foster carers, in particular out of hours, and information and communication between children's social workers and the fostering service.

3.7 Local authority fostering agencies are required to provide the NCSC with an Action Plan which describes proposals to address requirements or recommendations. The NCSC has confirmed its acceptance of Hampshire's plan which has "covered all the statutory requirements in a timely fashion".

4 Statement of Purpose

4.1 Whilst the NCSC in its annual inspection commented favourably upon the information made available for foster carers and others by the Department, officers have determined that improvement could be made and that these could most usefully be included in the Statement of Purpose, a key document which all fostering agencies are required to produce and make available. It is of necessity a summary of information. It is written in a way which is intended to be readily accessible to all foster carers, families of children in foster care and children looked after in foster care.

4.2 The Statement of Purpose is attached at Appendix 1 - for Members' comments.

4.3 It is to be issued together with what may be considered a companion document, a `Children's Guide' intended specifically for the use of children, which sets out for children the services they can expect, whilst in foster care, including information about the `Complaints & Comments' procedure in Hampshire. This was originally approved in December 2003 by the Executive Member for Social Care.

5 Key Messages and Common Factors

5.1 As outlined above in section 3 which describes the background, a range of key messages and common factors have been identified regarding areas for development which need to be tackled in order to secure necessary improvements in Hampshire's Foster Care Service.

5.2 The Hampshire Foster Care Service carries out three key functions:

5.2.1 Recruitment of foster carers through a recruitment and marketing specialist, who supports the county's recruitment team;

5.2.2 Support for foster carers and their families, primarily through the three District Fostering Teams, providing formal supervision and informal support, a full training programme, independent support regarding `complaints' and safe care practice, partnership work through it's Hampshire Fostering Network, opportunities for active involvement in local and national development and service development initiatives e.g. the National Fostering Taskforce;

5.2.3 Operation and support of the six Fostering Panels across Hampshire, which functions include oversight of the approval of applications to foster and to approve placements. Composition of these panels includes elected Members. The responsibility is significant and wide-ranging and panel members have access to an expanding training programme in recognition of this.

5.3 These key messages, confirmed in the County Treasurer's Consultancy Report which drew on the range of earlier reviews as well as pursuing development options to greater depth, established that,

5.3.1 Foster Carers must be effectively supervised, supported (on a practical level) trained (to the National Minimum Standards), have access to advice and guidance (24 hours a day and of a specialist, multi-agency nature when necessary), be remunerated adequately and appropriately (for expenses and for skills and/or experience), and feel valued (e.g. as fellow professionals, colleagues and team members). In terms of remuneration, this means that for expenses this should be done efficiently, and in a timely and non bureaucratic manner, and in a way which recognises the actual and hidden costs of fostering. It also means that for skills and experience foster carers need to be part of a professional development programme, which may lead to `paid employment'.

5.3.2 Fostering services must be properly and appropriately (i.e. as required by regulation) staffed, and supported by senior managers and elected Members, in order to be able to meet the statutory obligations and practice standards reinforced in Government performance indicators. These key outcomes include:- Stability and choice of placement for children (PAF A1 and D35), proper planning for children (through properly constituted and regulated Fostering Panel), listening to children, supporting children and young people in the achievement of their life chances, irrespective of ethnicity, religion, disability, culture or geographical location.

5.4 That this analysis of key development factors is accurate can be supported by the fact that the Hampshire Fostering Service has demonstrated that it is capable of providing good services where investment has been possible. For example, in the annual inspections report by NCSC, the highest ratings were awarded in areas of investment, i.e. foster carer training, recruitment strategy and developments in the Family & Friends service.

5.5 The fostering service requires additional investment in the infrastructure and in the level of allowances and fees to carers. In order to produce the necessary outcomes both of these strands are of equal importance and need to be developed together.

5.5.1 Both the report by the PMU (on management and organisational arrangements), and that of the County Treasurer's Consultancy (on the HCC in-house fostering service) stress the importance of this integrated approach to service development, and initial work with the National Fostering Taskforce has emphasised it. Investment in infrastructure leads to improved support services for foster carers, enhancing retention, whilst investment in the allowances and fees structure leads to improved financial support and recognition for foster carers, enhancing recruitment and retention. Neither action can deliver an improved service of itself. The Treasurer's Consultancy report makes clear recommendations about the need for improvement to fees and allowances, and the development to the service which are critical to foster carer retention.

5.6 The Treasurer's Consultancy report includes a cost-benefit analysis ( See Appendix 2) of the relative costs and other performance and quality factors in using Independent Foster Agencies (IFA's) and the Hampshire Foster Care Service. It is clear that a case can be made out for significant investment in the in-house service with the likelihood of real growth in the fostering service through the recruitment and retention of carers' who have the skills experience and commitment to offer placement to a wide range of children, underpinned by an improved support system.

5.7 Two significant outcomes have been identified from the preferred option and outline implementation plan described in the Treasurer's Consultancy report. these are an improvement in the stability of placement for more children, with a reduction in the current reliance on IFA's.

6 Future Developments

6.1 A project plan is being drafted which sets out a programme for key service improvements together with the necessary investment to be phased in over three years to commence during the current financial year.

6.2 The main elements would include the introduction of the national recommended fostering allowance rates, replacement of the Skills Fees Scheme with one which rewards all foster carers (instead of a small group) and critically, introduce a `professional fee' for foster carers, which would represent a realistic level of income to encourage a `career choice' to foster.

6.3 It is clear from all the reports listed that these financial improvements will not in isolation secure the necessary changes. The associated developments are outlined in the Treasurer's Consultancy report, and these primary areas could all be implemented by Hampshire's fostering services. These include, out-of-hours support, respite care, discretionary payments, membership of the National Fostering Network, and incentive payments for recruiting new carers.

6.4 The development plan will need to deliver against four key targets. These are, first, to introduce allowances at the rate recommended by the national fostering network during the current financial year; second, to secure against agreement to detailed proposals for priority developments together with implementation plans for the remainder of 2004/5 by November; third, to produce proposals for further developments for 2005/6 by December; and fourth, to have carried out an evaluation of the initial stages of the development plan by April 2005.

7 Hampshire County Council Corporate Strategy

7.1 This report and the fostering services referred to support the corporate strategy key aims; in particular

7.1.1 Aim 1: Maximising life opportunities, in this case for some of our most vulnerable members of the community.

7.1.2 Aim 5: Improving services, and,

7.1.3 Aim 6: Developing Councillors and staff in terms of Members' involvement on Fostering Panels and improvements for Foster Carers.

8 Race Relations (Amendment) Act

8.1 The Government's Regulations and Inspection arrangements specify requirement concerning racial (and other forms of) discrimination. Compliance with the Act in terms of carrying out an Impact Assessment is confirmed, forming part of the programme of work relating to the Department's Service Plans.

9 Conclusion

9.1 The Hampshire Foster Care Service provides a good service for Hampshire's Children Looked After, and the commitment of the county's foster carers is impressive. The annual inspection report identified areas of strength with some other areas of development, which have been addressed in the Action Plan; there were no areas of serious weakness.

9.2 The reorganisation of the fostering service three years ago which was part of the remodelling of the Department has brought significant benefits.

9.3 These two factors provide secure foundations on which to build.

9.4 Significant improvements are required in order to increase the capacity and scope of Hampshire's Foster Care Service and its infrastructure. The capacity of the service has been in decline with an associated increase in the use of independent sector providers. There are serious implications for performance in a number of areas as measured by Government, as well as significant, and rising budget pressures.

9.5 An outline three year project plan identifying significant additional investment has been prepared in order to implement service development, which will include as a key element of the commitment to expand Hampshire's Foster Care Service and improve conditions and support for foster carers.

10 Recommendations

It is recommended that the Committee,

1. Notes the conclusions of the Annual Inspection, the Action Plan, and the progress made in fostering services overall in Hampshire.

2. Recommends to the Executive Member for Social Care approval of the Statement of Purpose.

3. Supports and comments upon the outline proposals for improvements to the Hampshire Foster Care Service.

Appendix A

Hampshire Fostering Service Statement of Purpose

Aims and Objectives and Principles of Care

Hampshire County Council Social Services Department has a family placement service which covers the whole of Hampshire. The purpose of the family placement service is to provide a range of good quality family based care for children of all ages in Hampshire, who are unable to stay in their own families, either within our own resources or through independent fostering agencies in the Hampshire area.

Families are provided for children and young people who need to be cared for, for short or long periods of time, or for a planned series of short breaks. Where possible a child will be "matched" with a family who is from the same cultural or religious background, and who has the skills and training to care for the child, including children who have specific health, dietary, educational, physical or emotional needs.

Where this is not possible training, advice, equipment, and access to specialist help is arranged to support foster carers and children.

Structure of the Service

The service is made up of a county wide recruitment team and 3 district teams. The fostering recruitment team receives information about specific children requiring family placements, and general information about children's needs, in order to achieve a strategic approach to recruitment.

The three district teams are located in six offices located across Hampshire. Each team covers a district as follows:

North Team - Basingstoke, Alton and Aldershot

South East Team - Fareham, Gosport, Havant and Petersfield

South West Team - New Forest, Eastleigh, Romsey, Andover and Winchester

These teams receive information about children and young people who need to live in a family setting, on a short or long term basis or about children who need a family to offer regular short stays to a child with a disability, in order to support that child and its family. This is the family link scheme which is partly paid for by the health trusts in Hampshire.

Family and Friends Carers

The district family placement teams will work with the child's social worker, in the first instance, to see if anyone who is in the child's extended family or kinship network could, with support and financial assistance, look after that child.

Only when that is not possible, will the family placement social worker look for suitable placement with an already approved foster carer, or ask the recruitment team

to try to recruit a foster carer specifically for that child. The foster carer may be a Hampshire foster carer, or may foster for an Independent Fostering Agency (IFA).

Recruitment of Foster carers and the Fostering panel

The Fostering service recruits and assesses foster carers, offers training and advice, and operates the fostering panels, of which there are six in Hampshire. These each meet monthly and they recommend on the approval of foster carers, and oversee regular reviews of foster carers, to ensure a high quality of care. They also approve the quality of plans made for children who need permanent care away from home. Fostering panel membership is strictly regulated.

Supervision and Support

Foster carers, on approval, receive regular supervision and support, during the working week from the family placement social workers, social services assistants and foster care support workers.

Out of office hours support and guidance is available through the Hampshire Out of Hours Service. In addition to this there is a dedicated Foster Carer Support line which is run in conjunction with the Carers Support line.

Hampshire Fostering Network

Hampshire foster carers have a local network of support groups represented on a central committee, which receives a small grant to enable it to support foster carers in consultative roles or to provide representation on working groups around the County. The Committee meets monthly with managers and family placement staff, and regularly with senior managers, to ensure that issues of mutual interest and importance are addressed. The Fostering Network are also integral to the recruitment of new foster carers.

Information and Training

Access to specialist information is available to all Hampshire foster carers through the Hampshire Social Services library and a programme of specific training is also available, enabling foster carers to progress through several "skill levels". Foster carers are also supported in accessing the NVQ3 in childcare. A specific trainer has been recruited to ensure that foster carers receive the training they require.

A foster carers website has been developed so that foster carers can access information more easily. There is also a website for looked after children which links to the foster carers website.

A Fostering Handbook provides a comprehensive guide for all foster carers in the county.

Staffing

2 service managers (one operational/one strategic)

4 team managers

1 senior practitioner

27.5 qualified social workers

1 marketing co-ordinator

12.5 social services assistants

7.25 family link co-ordinators

3.5 foster care support workers

Administrative support is provided by social services resources team.

Foster carers

There are 450 Foster carers registered with Hampshire Fostering Service, and around family link Foster carers. About 10% of Foster carers are not fostering at any one time, due to personal or family circumstances. This reflects the national position.

There are around 550 children placed with Hampshire Fosters carers, and another 120 children who are placed with Independent Fostering agencies. This represents a decrease in capacity for the Fostering Service.

There are in the region of 120 children receiving regular respite care with the Family Link service.

Comments and Complaints

All foster carers are aware of the Hampshire County Council Comments and Complaints procedure should they need to use it. Should foster carers wish to complain or comment to an outside body they are invited to contact the National Care Standards Commission on 02380 8213000.

All children who are living in Hampshire foster care placements are provided with information about how to comment or complain about any aspect of their care or supervision.

In the last year,45 complaints were made against foster carers which were all investigated. Hampshire have an Independent Support Service for Foster carers who are the subject of a complaint or allegation, in recognition of the fact that such an experience can be very stressful for the whole family.

Allowances and Fees

All foster carers and family link carers receive an allowance to meet the expense of caring for a child which is based on the national recommended rate. These rates are reviewed annually, and published in order that all foster carers are notified.

Some foster carers and family link carers also receive a fee in recognition of their skills.

APPENDIX 2

3 Executive Summary

3.1 Report Summary

2.1.1 Foster care is a demand led service, with Local Authorities having a statutory duty to accommodate children at risk. Hampshire County Council has to meet national performance targets for the care of looked after children, and, as a foster care provider, operate in accordance with the requirements of the minimum standards set by the National Care Standards Commission.

2.1.2 There are a number of issues negatively impacting on the Council's continuing ability to maintain an effective in-house foster care resource, key amongst these are:

· increased pressure on the need for foster placements and limited in-house placement choice, leading to a greater risk of placement breakdown

· significant cost pressures on the fostering allowances budget, including a major cost constraint arising from the increasing number of placements with IFAs at a direct cost much more expensive than that of in-house provision

· the need to establish an improved specialist scheme for carers of children with complex / special needs

· low levels of foster carer recruitment

· the imperative to retain experienced foster carers

· increased competition for the recruitment and retention of foster carers from IFAs and neighbouring Local Authorities

2.1.3 The Council needs to establish greater placement choice and competition to IFAs and neighbouring Local Authorities for the recruitment of foster carers and maintain a sufficient range of in-house foster carer resources for emergency situations, the placement of mainstream looked after children and those with complex or special needs.

2.1.4 To achieve this the Council needs to address the key areas of foster carer dissatisfaction, in particular:-

· low levels of fostering allowances paid in comparison with other fostering providers

· difficulties in obtaining reimbursement for `exceptional' expenses

· perceived inconsistency in the application of skills / specialist placement fees

· insufficient out-of-hours support

· poor support from social workers

· lack of respite and support care

· inadequate information about foster children

· inefficient handling of practical / financial issues

· a failure to value foster carers and treat them as full members of the team caring for the child

2.1.5 There are a number of options for improving the allowances, support and benefits offered to foster carers.

· increase the standard maintenance allowance to the recommended Fostering Network minimum rate

· increase the payment for skills fee

· introduce a revised specialist placement scheme for children with complex / special needs, with a placement fee paid per child, reflecting the need for a carer to forego outside employment

· fundamentally re-design the scheme of allowance and use of skills fees for mainstream foster carers

· implement an out-of-hours foster carer support service

· introduce holiday / respite `pay' for foster carers

· establish a package of other benefits and discounts for foster carers

2.1.6 These options are not necessarily mutually exclusive and some could be combined to establish a significantly improved overall scheme to assist in the recruitment and retention of carers.

2.1.7 This report suggests 5 optional schemes, each with a varying additional cost over the projection for 2004/05. An analysis of the probable impact on costs, recruitment and retention arising from each scheme is outlined in the following table:

(In addition to the differing key features of each scheme, as highlighted in the table below, the following are also included):-

· payment of discretionary allowances

· holiday / respite care payments

· an out-of-hours foster carer support service

2.1.8 It is anticipated that much of the additional cost for schemes 3, 4 and 5 could be recovered over time by increasing the pool of in-house foster carers and reducing the number of placement weeks the Council purchases from IFAs.

2.1.9 In addition to the features of the optional schemes, there may also be opportunities to introduce a package of other benefits and discounts for foster carers at little or no cost to the Council.

2.1.10 Realistically, the Council must consider a substantial investment in the in-house fostering service if it is to increase and maintain an effective foster carer resource base, gain some financial return on its investment, and represent an attractive and viable option of first choice for the recruitment and retention of foster carers.

3.2 Conclusions

3.2.1 The challenges faced by Local Authorities and foster carers have been the subject of numerous research studies over recent years. This review simply confirms that the situation in Hampshire is little different to that experienced nationally. However, in understanding the issues and their impact and addressing those over which it has some control, the Council has an opportunity to significantly improve its position as a fostering provider.

3.2.2 Research, both nationally and locally, suggests there are five key areas of recognised best practice in the successful operation of a fostering service:-

· recruiting and training new foster carers

· retaining carers and creating job satisfaction by career choice

· creating placement choice

· the availability of specialist placements for children with complex and special needs

· supporting foster carers

3.2.3 Hampshire currently falls short in all of these key areas, the consequent pressure on the fostering service results in an escalating spiral in costs, as children are increasingly placed in expensive IFA placements, without a commensurate and measurable increase in performance or added value in outcomes for children.

3.2.4 Whilst the number of looked after children in Hampshire increased slightly between the period January 2003 - January 2004 (1,202 - 1,218), the actual number placed with in-house `stranger'¹ foster carers reduced (484 - 449), or from 40% to 37% of the total number of looked after children (65% to 61% of children in all forms of foster care). This reduction in provision was partially offset by the number of looked after children placed in foster care with friends and families², during the same period, increasing (139 - 160), or from 12% to 13% of the total number of looked after children (19% - 22% of children in all forms of foster care)³.

3.2.5 The ability to match children with the skills, experience and personal circumstances of each individual foster carer is a major step in facilitating a lasting placement. Clearly, the shortage of suitable in-house foster carers makes it hard to ensure a good match between child and carer and increases the risk of placement breakdown. It can also lead to instability and disruption, with children being moved from foster home to foster home, separated from their siblings or placed at a distance from their school, family and friends. It can also lead to children with disabilities, in particular, being placed in residential care.

3.2.6 In an attempt to meet demand and manage costs, foster carers are frequently asked to take placements of children out of their approval range and over their approval number.⁴ This increases pressure on foster carers and the likelihood of placement breakdown and, inevitably, to more allegations and complaints being made against carers and the Social Services Department.

3.2.7 The specialist fostering service provided by many IFAs is designed to complement in-house provision, not replace it. The existence of IFAs broadens the choice of services on offer and their use should be limited to situations where children are difficult to place and where the specialist services offered by the IFA represent `added value' to the Council in meeting the individual needs of the child and the placement choice is made for positive reasons.

3.2.8 Whilst care of the child is of prime concern, this must be provided in a demonstrably cost-effective way and within the constraints of budgetary pressures. Given the limited pool of in-house foster care resources, IFAs are increasingly having to be used for the placement of mainstream looked after children whose needs are not commensurate with the level of service available and at a cost which clearly does not represent value for money when compared with the equivalent cost of an in-house placement (a forecast additional direct cost, on average, of £745 per placement per week).

3.2.9 Even when an in-house placement does become available, once placed with an IFA it can prove difficult to move a child who has become settled with an independent foster carer. The prime focus should be on getting an in-house placement `right first time'.

3.2.10 The Council does, however, need to have a much better understanding of the costs of providing foster care services, including those additional specialist services required to meet the needs of individual needs of the child, and clearer information regarding the cost and benefits of in-house services compared to those provided by IFAs. The economics of placing a child with an IFA may become less questionable if the range of services made available between in-house and independent sector provision, and the anticipated outcomes for the child, were compared on a `like-for-like' basis.

3.2.11 Although foster carers have a naturally limited lifecycle beyond the control of the Council (for example, retirement or changes in domestic circumstances), the existing profile of Hampshire's foster carers does show that at least 38% have been fostering for the Council for over 5 years, with only 2 foster carers lost to IFAs in 2003. This demonstrates how loyal carers are to the County and the Social Services Department. However, given many are in the older age range, a noticeable `exodus' of carers is anticipated over the next few years.

3.2.12 The recruitment of foster carers to undertake the increased demands of the role is proving to be extremely difficult, particularly in the face of competition from the independent sector. The result is a diminishing resource base as foster carers lost through natural wastage are not being replaced.

3.2.13 There were 37 approvals of new in-house `stranger' foster carers during 2003. However, of the 445 referrals to the county foster carer recruitment team during the same period, only 8 resulted in new approvals, whilst 58 existing foster carers were de-registered. This net loss of foster carers is a continuing trend and places enormous pressure on the fostering service in trying to maintain effective provision.

3.2.14 The situation in Hampshire is a reflection of the national picture, where it is estimated that an extra 8,000 foster carers are needed to ensure that all children in care are placed with families able to look after them⁵. Children and young people coming into Local Authority care tend to have highly complex needs and often very challenging behaviour, the fact that more people are not coming forward as potential foster carers is a strong indication of the perceived attractiveness (or unattractiveness) of fostering as an option.

3.2.15 The county recruitment team is working hard to raise the profile of foster care and give it a real and positive identity. Rather than focussing on foster children, the team are marketing `fostering' as a career choice, describing the challenges but also the satisfaction and benefits that can be achieved. The clear risk is that, having attracted potential carers to the fostering role, they then apply to independent sector providers able to offer superior remuneration, support and training packages.

3.2.16 Hampshire's standard maintenance allowances for the child are calculated at only 90% of the national Fostering Network's recommended minimum⁶ and are the lowest allowances paid by fostering providers in central southern England. Foster carer dissatisfaction with the level of allowances is based not just on the worth of the money, more that the amount paid represents the low value they believe the Council places on them and the service they provide.

3.2.17 The current competency based skills payment system⁷ is generally unclear to foster carers who believe it to be inconsistently applied. Given pressure on places, more difficult placements often have to be made with skill level 1 and 2 foster carers. Equally, the payment of a single skills fee is not relevant to those foster carers who accept multiple placements.

3.2.18 When fundamentally re-designing their scheme of fostering allowances, Surrey County Council decided to avoid introducing a scheme that linked mainstream foster carer skill levels with the fee paid, on the basis that:

· schemes can be complicated and time-consuming to administer

· limited placement choice often means more challenging children are placed with foster carers across the skills range

· there is no firm evidence of better outcomes for children

· there will always be situations where there is a discrepancy in what foster carers believe they should be paid and what staff think they should be paid and the ensuing debates to seek resolution detract from the `business in hand'

3.2.19 Operation of the specialist project care scheme⁸has been characterised by inconsistency in application of the original scheme criteria. The fee has been frozen for 2 years whilst foster carers await the implementation of a new `level 4' professional foster scheme.

3.2.20 Aware of the Department's `desperation' to find placements, some foster carers will often `force' social workers to submit to demands for the payment of additional fees and allowances before they will agree to accept a placement. This could be avoided if allowances were paid at a more realistic rate in the first place and there was greater understanding and transparency in the application of specialist fees.

3.2.21 The majority of carers profess to not fostering for the financial reward but, at the same time, do not understand why they continually have to ask for money to do the job. Foster carers are often out-of-pocket and have to wait significant periods of time for the reimbursement of expenses they have already incurred. They also face the risk of not being reimbursed if they are deemed not to have followed procedure and purchased essential equipment in an emergency situation without first obtaining the necessary approval.

3.2.22 There is a very real risk that the continuing delays and / or refusal to pay relatively small reimbursement claims will become "the straw that breaks the camel's back" and foster carers will be avoidably lost to the service, resulting in yet more children having to be placed in vastly more expensive IFA placements.

3.2.23 There needs to be a much greater balance between the understandable need for prudence in managing the budget and `penny pinching', the process of which often causes great offence to foster carers.

3.2.24 The Exceptional Payments Panel agreed to the payment of `exceptional' expenses amounting to £18,000 in financial year 2003/04. The direct and opportunity costs incurred in administering the panel must have far outweighed the potential `saving' in refused claims.

3.2.25 There does not appear to be a formal policy of conducting exit interviews with foster carers seeking de-registration. Conducting such interviews might help inform future recruitment and retention strategies.

3.2.26 A study in Scotland⁹, indicated that 3/5ths of those who ceased to foster did so for reasons relating to the operation of the fostering service, rather than for purely financial reasons.

3.2.27 Much recruitment of new foster carers is by word of mouth, however, disillusioned foster carers and former carers are not good ambassadors for fostering, given the image of the fostering service is key to attracting potential new carers.

3.2.28 Against a background of very limited placement choice, significant cost pressures, low recruitment and morale and an in-house foster care service under increasing strain to maintain provision, the Council must consider options for extensively investing in the service.

3.2.29 With the growth in the fostering market, those wishing to start, or indeed continue, a career in fostering now have a choice of agencies to whom they can offer their services. As a Local Authority, Hampshire can no longer assume that it will be the first choice for existing or potential carers and is now faced with the challenge of creating a fostering package that is at least as attractive to potential and existing foster carers as the independent sector.

3.2.30 Foster carers are a valuable and increasingly scarce resource who undertake a difficult and demanding role. They have a right to expect to be commensurately rewarded, especially as it may be difficult, or impossible, for them seek other employment if they are required to be available for the children in their care on a full-time basis.

3.2.31 The payment of professional fees provides carers with a predictable and relatively reliable income and the ability to provide for their pensions. This is a particularly relevant issue if the Council is to achieve increased recruitment in the face of competition from IFAs and neighbouring Authorities.

3.2.32 Maintenance and discretionary allowances should reflect the full costs of caring for the child and provide foster carers with the financial tools necessary to carry out their role effectively.

3.2.33 Paying competitive allowances and fees to foster carers to combat increasing market competition is, in effect, no different to the principal already adopted by the Council of paying market premiums / increased salaries to staff employed in hard to recruit / retain roles.

3.2.34 Experience in other fostering agencies shows that providing a foster carer support service, especially out-of-normal working hours, is not only effective in retaining foster carers but also in reducing the risk of placement breakdown. It also protects the Council from potential litigation, should an inappropriate event occur in a foster home, to either carer or child, that may have been prevented had adequate support been provided.

3.2.35 The Council should consider the provision of support to foster carers in a variety of forms:

· from social work and family placement staff (including 24 / 7 out-of-hours support)

· other foster carers

· financial

· training

· respite and support care

· specialist advice and support

3.2.36 Foster carers must also be recognised by the Council, Social Services Department and individual social work staff as respected partners in delivering high quality placements and care for the child. There must be far more `personal' recognition of good pieces of work undertaken by foster carers to make them feel more valued by the organisation.

3.2.37 Over recent years, the in-house fostering service has implemented a number of initiatives, aimed at improving its service to both carers and children, including:

· re-modelling to a County-wide service to ensure better use of resources and consistency in practice

· introducing greater uniformity in the payment of allowances

· the appointment of a dedicated foster carer training officer

· the appointment of a marketing officer to the county recruitment team

3.2.38 However, their ability to progress this programme of improvement has become difficult within the limitations of the current funding and payments structure.

3.2.39 In reality, `tinkering' with the scheme of allowances (for example, simply increasing the standard maintenance allowances to the Fostering Network recommended minimum), whilst relatively expensive, is unlikely to have anything more than a marginal (if any) impact on the Council's ability to recruit and retain foster carers.

3.2.40 The Council must consider a significant `invest to save' initiative, introducing a number of new and improved benefits to the overall package offered to foster carers, if it is to substantially improve its position as a fostering provider and realise measurable increases in provision.

3.2.41 To achieve a full return on its investment, it is suggested that the Council will need to recruit between 15 and 53 new foster carers (in addition to normal recruitment), depending upon the features and cost of the improved package on offer. This increased provision should enable the return of children from expensive IFA placements and generate `savings' for the Council).

3.2.42 It is recognised, however, that given the needs of the child, it may not be appropriate or possible to return as many children as required to in-house provision. In which case, direct payback of the Council's investment in its fostering service may only be achieved through reduced numbers of new IFA placements (compared to current levels) in future years, less residential placements of children with disabilities and fewer placement breakdowns.

3.2.43 A re-designed scheme of allowances could be phased in over an 18 month period, commencing in October 2004, with an increase in allowances to the Fostering Network minimum and the introduction of a revised specialist placement scheme. This phasing would allow some testing of the impact on recruitment (particularly in response to the increased specialist placement fee) and provide an opportunity to gauge the potential success of introducing a significantly re-designed scheme.

3.2.44 Since October 2003, when it introduced its significantly improved scheme of allowances, Surrey County Council has experienced an unprecedented level of interest in fostering, reflected in the number of enquiries and those attending introductory meetings, with more foster carer assessments now being undertaken than ever before. The County has achieved its target to recruit 50 additional foster carers in 2003 and are hopeful of achieving their target of 100 foster carers in 2004. This has required the establishment of an infrastructure capable of completing the assessment and approval process of suitable applicants within 3 months of the initial referral.

3.2.45 Hampshire would equally need to consider its capacity to cope with the increased recruitment activity anticipated from significantly improving its offering to foster carers.

3.2.46 An attractive remuneration, support, training and benefits package is an essential marketing tool in the bid to recruit more foster carers. It will enable the recruitment team to move away from the purely emotional appeal of fostering and focus on marketing the professional and challenging role foster carers are increasingly being required to undertake.

3.2.47 The consequences of failing to do this means inappropriate placements will continue to be made and the pressure on existing foster carers (and residential placements) will increase, threatening recruitment and retention even further. It will also encourage an inevitable increase in IFA placements and escalate potential costs almost out of control.

3.3 Recommendations

3.3.1 The following recommendations should be subject to extensive consultation with elected members, foster carers, family placement and social work staff and other relevant stakeholders.

3.3.2 Additional costs are based on the comparative forecast costs for 2004/05 for the current scheme and existing activity.

3.3.3 It is recommended that:

from October 2004

(a) the standard maintenance allowance is increased to the Fostering Network recommended rate (additional cost £207,500 in 2004/05 and £415,000 in 2005/06)¹⁰

(b) subject to the development of a transparent and consistently applied criteria / guidance, a "skills level 4" scheme is introduced at £150 per placement per week from October 2004 (additional cost £40,000 in 2004/5)¹¹

(c) a pilot out-of-hours foster carer support service is implemented (cost £81,500 in 2004/05 and £163,000 in 2005/06)¹²

(d) the service of the Financial Assessment and Benefits (FAB) Team is extended to foster carers accepting placements of children with special needs / disabilities (resourcing and costs to be established)

(e) a `reward' scheme is established for foster carers introducing potential new recruits. A payment should not be made at the point of initial referral but £500 paid when the applicant is approved, a child is placed and the foster carer remains available for placements for 6 months from the date of their approval

(f) in circumstances where an existing foster carer has introduced a potential new recruit, the approval process is `fast-tracked' within a guaranteed 3 month timescale

Total additional cost in 2004/05 = £329,000

from April 2005 (in addition to the above)

(g) the levels 2 and 3 skills fee is increased to £75 and £100 respectively (additional cost £184,000 in 2005/06)

(h) the "skills level 4" fee is increased to £250 per placement per week (additional cost £240,000 in 2005/06)¹³

(i) subject to the development of a transparent and consistently applied criteria / guidance, `stranger' foster carers are entitled to receive 2 weeks paid holiday / respite, 3 weeks if a specialist foster carer (cost £60,000 in 2005/06)¹⁴

(j) subject to the development of a transparent and consistently applied criteria / guidance and payment ceilings (including the regular verification of the process via management control reports), the Exceptional Payments Panel is discontinued in favour of a system of discretionary allowances managed by the family placement team manager in each district (additional cost £20,000 in 2005/06)¹⁵

(k) the Council funds the first year (only) membership subscription to the national Fostering Network for newly approved foster carers (cost £35 per foster carer)

(l) a scheme of discounts for foster carers to HCC venues and facilities is introduced and promoted / marketed to foster carers

(m) a scheme of negotiated discounts for foster carers to District and Unitary Authority venues and facilities and for the purchase of goods and services from other organisations is introduced (including those discounts and benefits currently made available to staff)

Total additional cost in 2005/06 = £1,082,000 (including the full year effect of carrying forward relevant recommendations implemented in October 2004)

from April 2006

the scheme of allowances is re-designed to include the following (other features, eg out-of-hours support service, respite care, discretionary allowances, discounts, etc. to remain)

(n) the standard maintenance allowance is based on two age ranges only (<11 and >11), the allowance for each being paid at the Fostering Network recommended rate for ages 5 - 10 years and 16+ years respectively (additional cost £991,000 in 2006/07)¹⁶

(o) the skills fee system is discontinued and replaced with all `stranger' foster carers (excluding those in receipt of the specialist placement fee) receiving a placement fee based on the number of children in placement (additional cost £1,254,000 in 2006/07)¹⁷

(p) foster carers accepting placements of children with special / complex needs (or who have to be placed alone) to receive a specialist placement fee of £250 per child per week (additional cost £240,000 in 2006/07- as previously)¹⁸

Total additional cost in 2006/07 = £2,728,000 (including the full year effect of carrying forward relevant recommendations implemented in October 2004 and April 2005)

Other (to be implemented as soon as practicable / possible)

(q) a review of the capacity of the county foster carer recruitment is carried out to establish its ability to cope with increased numbers of applicants and gain approvals within a 3 month timescale

(r) an extensive recruitment campaign is commenced, maximising publicity and emphasising the re-designed scheme of allowances (current and future) for foster carers

(s) assessment and approval of new foster carers is targeted at the areas of most need

(t) the approvals of existing foster carers are reviewed to identify the potential for additional capacity - those carers who may be encouraged to increase the range of their approval given the re-designed scheme of allowances

(u) wherever possible and appropriate, children placed with IFAs are returned to in-house provision

(v) a competency / skills framework is developed for all foster carers (linked to the provision of appropriate training) against which they are regularly appraised - de-registration being the ultimate sanction if not met to an acceptable level

(w) the issues / recommendations contained in the "National Standards Training and Audit Report; Hampshire Social Services Department - Children and Families" - Debra Gibbs, Independent Foster Care Consultant - July 2003 (particularly those related to supporting and valuing foster carers) are reviewed and actioned where practical and possible

Next steps

(x) consider the feasibility (personnel / NCSC implications) of employing current residential childcare workers on different types of contracts as foster carers for specific children

(y) consider paying a `loyalty' payment to active foster carers after agreed periods of time from the date of their approval (say) 5 years and 10 years

(z) arrangements for the provision of transport for foster children is reviewed to establish its appropriateness in meeting the needs of foster carers and introducing consistency into the process

(aa)a review is undertaken of the pilot out-of-hours foster carer service to establish whether this should be continued in full or reduced form as a permanent feature of the Hampshire fostering service

(ab)consideration is given to paying fees and allowances for placements known to be continuing for the longer term at 2 weekly intervals (4 weekly if possible) - potential savings in transaction costs to be quantified

(ac) the current devolved budgetary arrangement is re-considered

(ad) review the costs of providing foster care services, in-house and IFA