Contact: Sue Kocaman Ext: 7173 E-mail: [email protected]

1 Summary

The following decisions are sought:

1.1 That approval be given for adoption, residence and kinship allowances, foster care and family link allowances and foster carers' skill fees to increase as follows:

1 Increase Adoption Allowances by 2.5% as of 1 April 2005, and introduce a new Adoption Allowance scheme.

2 Increase Residence Allowances by 2.5% as of 1 April 2005.

3 Increase Kinship care allowances by 2.5% as of 1 April 2005.

4 Introduce enhanced allowances to enable children to achieve permanence.

5 Increase Family Link Allowances by 2.5% as of 1 April 2005.

6 Increase Foster Carers Skill Fees by 2.5.% as of 1 April 2005.

7 Increase Fostering Allowances by 2.5.%.as of April 2005.

2 Reason

2.1 To assist in achieving the Corporate Aims of the County Council by

Maximising Life opportunities (Aim One),

Building strong and safe communities ( Aim Four)

Improving Services ( Aim Five)

By supporting children in their own homes, and increasing the choice of family

based care placements for those who need to be card for away from home.

2.2 To increase the likelihood of children achieving Permanence in a family setting

2 Other options considered and rejected

3.1 Not to increase the allowances

4 Conflicts of Interest declared by the decision-maker or a Member or Officer consulted

None

5 Dispensation granted by the Standards Committee

None

6 Reason(s) for the matter being dealt with if urgent

Not applicable

Approved by: Date of decision:

Councillor Felicity Hindson

Contact: Graham Wright/Sue Kocaman Ext: 7263/7173

1 Introduction

1.1 This report outlines the proposals for increasing fees and allowances to Hampshire County Council's standard range of allowances payable in respect of children who cannot be cared for by their parents and need to be cared for away from home, and in respect of those who can be supported to remain at home, with regular respite care provided by others

1.2 The underpinning philosophy is that, wherever possible, children should be helped to remain in their own homes with their own parents. Where this is not possible, they should be cared for in their extended families or with adults with whom they are familiar.

1.3 Children should not remain in public care unnecessarily, and plans should be made for their return home, or for permanent alternative arrangements to be made for their care as quickly as possible, so that children can experience stable, family based care for the duration of their childhoods.

2 Hampshire County Council Corporate Strategy

2.1 This is in line with the strategic Aims of the County Council, by enabling children to experience stable family life which supports the following aims in particular:-

Maximising Life opportunities (Aim One)

Building strong and safe communities ( Aim Four)

Improving Services ( Aim Five)

2.2 This also supports the County Council's Public Service Agreement to increase the number for children who achieve permanence through adoption or by way of permanent care arrangements with family members or friends.

3 Race Relations ( Amendment) Act

2.1 An Impact assessment, is being carried out in respect of the placement of children who are in the Care of the Local Authority, as required by Government Regulations .

2.2 Hampshire County Council recognises the particular needs of children from minority ethnic groups, and is committed to making arrangements to ensure that all children in the care of the Local Authority are placed with carers from the child's family, and to ensuring that all caraers are offerred advice and information which enables them to meet the child's cultural and racial needs, as well as to challenge racism promote equality and diversity.

2.3 In addition, all staff employed in the fostering and adoption services are committed to a policy of equality and one of recognising, valuing and promoting diversity.

3 Adoption Allowances

4.1 It is proposed that Adoption Allowances in respect of existing schemes increase by 2.5% as of 1 April 2005. Currently 185 children who have been adopted, are eligible for adoption allowances, and adopters are subject to an annual assessment to establish continued eligibility, and to take account of changing circumstances.

4.2 In October 2003 new Adoption Support Regulations came into force, which extended the ways in which adopters can be supported in their care of children. Adopters are encouraged to seek financial support through universal benefits and allowances such as Tax credits and child benefits. In addition, adopters will be able to request an assessment for financial support at any time during the adopted child's childhood. The aim is to decrease the numbers of families dependant upon Adoption Agencies for their incomes, and enable agencies to provide services rather than financial support.

4.3 To this end, a new Scheme has been developed which assesses prospective adopters against a different set of criteria for weekly financial support, but enables the Social Services Department to make one off allowances or grants in respect of specific children's needs, such as assistance to purchase a vehicle, or to adapt a property for a child with special needs.

4.4 The number of children being supported by way of a regular allowance has increased steadily over previous years. The new Scheme will begin to reduce the number of adopters being supported in this way, and release funds for one off payments.

4.5 For those children still being supported under one of the three previous schemes, an increase of 2.5% from 1 April 2005 is appropriate, in line with the rate set by the County Council for services.

5 Residence Allowances

5.1 It is proposed that Residence Allowances increase by 2.5% as of 1 April 2005. Currently 79 children are supported by way of a residence allowance, and again these allowance rates are awarded following a financial assessment. In the last year there has been a net increase of 23 children supported in this way .

6 Kinship Care

6.1 Kinship care allowances have been newly developed in Hampshire, with a small number of children being supported in this way currently. Allowances are awarded in line with those granted to adopters and those seeking a Residence allowance, and it is proposed that the rate be increased by 2.5% in line with similar allowances. 12 children are being supported in this way currently, and it is expected that there will be a continuing rise in the number of children being supported in this way in the coming year. This is in line with Hampshire County Council's policy of enabling children who would otherwise be in public care, to be cared for within their extended family.

7 Promoting Permanence

7.1 Adoption Allowances, Residence Allowances and Kinship Care Allowances are all payable in respect of children who have been in the care of the Local Authority, or who would have been in the Care of the Local Authority, and have been able to live permanently with either their existing foster carer or with a family member or friend, outside of the Care system.

7.2 Whilst the payment of an allowance has enabled a number of children to leave care each year, (during 2004-05, 7 children were taken on permanently by their foster carers under one of the above arrangements) it has become increasingly evident that even greater numbers of children would be supported in this way, if the allowance payable was not financially assessed. For most Foster carers, a financial assessment represents a potential or actual significant decrease to their weekly allowance . For some carers, this has meant that they have been unable to consider caring for a child outside of the fostering arrangement, when the child themselves has no real need to remain in the care of the Local Authority.

7.3 If the allowance could continue to be paid to the carer at almost the same rate as the Fostering Allowance ( with a small amount deducted in lieu of child benefit and child tax credit,) more children could be supported with families, outside of Local Authority care.

7.4 It is proposed, therefore, to introduce a scheme which enables all children who leave care or avoid being looked after as a result of being looked after by family, friend, or current foster carer, have an allowance paid at a rate which is identical to the fostering allowance minus child benefit.

7.5 This arrangement is currently available on an individually agreed basis, and for a maximum period of 3 years only. Whilst this has enabled some children to leave the care system, for most carers, a 3 year `enhanced' allowance does not offer the financial stability which would enable them to offer a permanent home to a child or young person up to the age of 18 and beyond.

8 Family Link Allowances

8.1 It is proposed that Family Link Allowances be increased by 2.5% as of 1 April 2005. Currently 121 children benefit from using this scheme which offers planned, family based respite care to children with disabilities. During 2003, Family link carers were also able to take advantage of the `Payments for Skills `scheme for the first time. This service offers significant support to children and their families, and is one which Hampshire County Council is committed to developing in the coming year. A 2.5% increase in line with other allowances is therefore recommended. This would mean that family link carers would receive the following rates:

	2004/05	2005/06
0 - 4hrs	£12.30	£12.60
4 - 8hrs	£22.55	£23.11
8 - 12hrs	£30.75	£31.52
Overnight	£18.45	£18.91
Waking Night	£30.75	£31.52

9 Skill Fees

9.1 All foster carers are automatically assessed as competent at skill level one and thereafter are invited to work towards level two and three if they wish to do so. Currently 227 foster carers are receiving a skill level payment. This is an increase of 18 on the same period last year.

9.2 In addition, a small number of foster carers (35) remain on the Project Care Scheme which pays a fee of £121.08 per child per week.

9.3 A small pilot scheme has recently been agreed by the Executive Member for Social Care, introducing a salaried scheme which is more in line with that offered by Independent Fostering Agencies.

9.4 Until that work is completed it is proposed that all of the above fees be increased by 2.5% ( or as near as possible to enable the skill fee to remain divisible by 7, in order that Family Link Carers can continue to easily use the scheme), with a commitment to consider the outcomes from the current pilot scheme in the Autumn of 2005. This would mean that carers would receive;

	2004/05	2005/06
Level 2	£57.40	£58.80
Level 3	£78.20	£80.15
Project Care Fee	£121.08	£124.11

10 Fostering Allowances

10.1 Hampshire's foster carers offer an excellent professional service to children who need to be looked after away from home, both on a short term basis and as a longer term arrangement. Foster carers continue to emphasise that training and support are as important to them as levels of allowances and fees.

10.2 The Social Services department has continued to provide a full calendar of training for foster carers, and provides an independent service to foster carers who have a complaint or allegation made against them.

10.3 The Hampshire Fostering Network is allocated a grant of £5,000 per year to produce regular newsletters, and to hold meetings around the County every month . It organises regular social and information based events for foster carers and their families, and attends annual events for foster carers, to represent Hampshire, and learn from other foster carers across the country.

10.4 During 2004, 12 foster carers achieved their NVQ3 in Childcare, and over 60 foster carers were invited to a special dinner to celebrate and recognise their many years contribution to fostering.

10.5 In December 2004 the Executive Member for Social Care agreed programme of service developments to the fostering service, representing an investment in the service over the coming year. This will mean several new support schemes such as an Out of Hours service and additional support from experienced foster carers , as well as additional staff to recruit new carers, and the introduction of a higher rate or `Level Four' skill fee scheme . These pilot schemes confirm the commitment of the County Council to its foster carers, and the vulnerable children who are looked after by them.

10.6 The County Council also makes available additional grants and payments to meet the needs of individual children in exceptional circumstances. This may be through the adaptation of a foster carer's home, the provision of specialist equipment or services, or specialist training or services to enable a young person to more fully achieve his or her potential.

10.7 Childcare rates, to enable foster carers to attend important meetings and training, are proposed to increase from £4.00 per hour to £4.10 per hour.

10.8 Mileage rates for essential travel are proposed to increase from 40p per mile to 41p per mile.

10.9 In respect of fostering allowances for 2005/06, it is proposed to increase allowances by 2.5% for all age groups at this stage. An amendment to the Children Act 2004 means that recommendations are likely to be made to introduce a nationally agreed rate of allowances to foster carers in the next few years. In the meantime, it is proposed to pay the following allowances from 1 April 2005;

	Current Hampshire Rates	New Hampshire Recommended Rate
0 - 4	£97.58	£100.10
5 - 10	£111.79	£114.59
11 - 15	£139.09	£142.52
16 +	£180.04	£184.52

11 Financial Considerations

11.1 The cost of the proposals outlined in this report will be met from the annual cost of living increase.

11.2 Recommendation No 4 would represent a saving to the department as carers will be eligible for financial benefits from other agencies in respect of the child, for example child benefit, child tax credits, DLA (disability living allowance).

11.3 These will be taken into account when calculating the amount of support that will continue to be provided by the County Council, whilst ensuring that the carers do not suffer financially. In most cases the saving will be £11.05 a week for child benefit, £10.50 for child tax credit (if the gross taxable income is below £55k) and 4 weeks foster care allowance (foster carers receive payments for 56 weeks in each financial year to cover birthdays, holiday and a religious holiday, payments of allowance outside the foster care system are only paid for 52 week).

11.4 The potential annual savings are set out in the table below.

	1 Child £	15 Children £	30 Children £
Child Benefit	574	8,610	17,220
Child tax credit	546	8,190	16,380
4 weeks allowance (average)	528	7,920	15,840
Total	1,648	24,720	49,440

11.5 There will also be the opportunity costs in relation to social worker time spent on a Looked After Child case, and the assumption that there would be less or no input from Social Services once the child has achieved permanence. The average hourly rate of a social worker is £21.99 (this includes overheads costs to cover management, admin etc), although this is not a direct saving, it would free up time for other areas of work or cases. This would enable social work time to be spent instead on progressing plans for children who continue to be cared for by the local authority, either by rehabilitating them home more quickly, or by offering greater support to those who need to remain in care longer term.

11.6 Therefore, if 15 children were to leave care by way of an adoption, residence or kinship arrangement with their present foster carer it would represents a minimum saving of £24,729 per annum, plus associated savings in staff time.

12 RECOMMENDATIONS

1. Increase Adoption Allowances by 2.5% as of 1 April 2005

Reference Paragraph 4

2. Increase Residence Allowances by 2.5% as of 1 April 2005

Reference Paragraph 5

3. Increase Kinship Care allowances by2.5% as of 1 April 2005

Reference Paragraph 6

4. Introduce enhanced Allowances to enable children to achieve permanence

Reference Paragraph 7

5. Increase Family Link Allowances by 2.5% as of 1 April 2005

Reference Paragraph 8

6. Increase Foster Carers Skill Fees by 2.5% as of 1 April 2005

Reference Paragraph 9

7. Increase Fostering Allowances by 2.5% as of 1 April 2005, plus additional miscellaneous expenses for foster carers.

Reference Paragraphs 10.6, 10.7 and 10.8

13 CONCLUSION

13.1 That the above recommendations for increases to fees and allowances be confirmed.

Section 100 D - Local Government Act 1972 - Background Documents

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1. Published works

2. Documents which disclose exempt or confidential information as defined in the Act

NONE