Contact: Pam Robinson Tel: 01962 847991 email: [email protected]
Contact: Sue Kocaman Tel: 01962 847166 email: [email protected]

1 Summary

1.1 This report outlines the proposals for increasing Hampshire County Council's fees and allowances payable in respect of children who cannot be cared for by their parents and who need to be cared for away from home, and in respect of disabled children who are 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 as quickly as possible. Children should experience stable, family based care for the duration of their childhoods.

1.4 The fees and allowances payable to carers are carefully constructed to ensure that children are not disadvantaged in achieving the best placement, because of financial inequalities. The primary consideration can therefore be the best legal arrangement with the carer who can offer security and good outcomes for the child. The allowances recognise the additional requirements of foster carers caring for children in public care, and the different demands on those caring for children who are not in care.

1.5 The allowance levels proposed for 2007-2008 take account of new national minimum rates of fostering allowances, which all fostering services are required to pay following the implementation of The Children Act 2004. Allowances are calculated at a weekly rate unless stated otherwise.

Recommendations

That the Executive Lead Member for Children's Services approves the following changes to allowances, fees and associated expenses so as to:

· increase Fostering Allowances to align Hampshire's fostering rates more closely with the National Recommended Fostering rate as of April 2007. (Reference Section 3, Paragraph 3.2)

· increase Adoption Allowances in line with Fostering allowance increases as of 1 April 2007 (Reference Section 4 and Paragraph 4.8)

· increase Residence Allowances in line with Adoption Allowances as of 1 April 2007. (Reference Section 5 and Paragraph 4.8)

· increase Special Guardianship Allowances in line with Adoption Allowances as of 1 April 2007. (Reference Section 6 and Paragraph 4.8)

· increase Kinship care allowances in line with Fostering Allowances as of 1 April 2007. (Reference Section 7 and Paragraph 4.8)

· increase Family Link Allowances by 2.5% as of 1 April 2007. (Reference Section 8, Paragraph 8.1)

· increase Foster Carers Skill Fees by 2.5% as of 1 April 2007. (Reference Section 9 Paragraph 9.5)

· increase additional miscellaneous expenses associated with the above activity (Reference Section 10, paragraphs 10.3,10.4, 10.5 and 10.7)

1 Background

2.1 There were 1,029 children in the care of the Hampshire County Council at 31 December 2006, 887 of whom were living in families. Whilst a small percentage of these children are living with their parents as part of a programme of reunification, the vast majority are in foster placements identified and approved by the local authority. Some children are placed in independently approved foster placements, and work is underway to ensure that such placements are made based on a child's need, rather than in response to a short fall of available family placements within Hampshire's own resources, and to ensure that they represent value for money.

2.2 The Children's Services Department recognises the importance of developing a range of different family placements for children, each being eligible for financial support to ensure that a child is not prevented from being placed with a family which can meet their needs, due solely to financial barriers.

2.3 Family placements need to be available for children who are in care, but also for children who are `on the edge' of the care system. In other words children or young people who could be prevented from coming in to care, or who could be supported in leaving care, by way of agreement or by a legal order.

2.4 The range of placement types described in this paper, cover all of those circumstances. The allowances payable in each case represent only one element of the support given to families when they care for a vulnerable child or young person.

3 Fostering Allowances

3.1 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. An amendment to the Children Act 2004 requires all fostering agencies to pay a minimum rate of allowances to foster carers as of 1 April 2007. The rate of allowances paid by Hampshire currently, means that if allowances were increased at 2.5% as a standard rate of increase, children aged 0-10 would still receive below the national recommended rate whilst those aged 11-18 would receive slightly more or significantly more than the national recommended rate.

3.2 It is therefore proposed to increase allowances in a way which brings all age groups more in line with the national recommended rate. This means a higher than 2.5% increase for younger children and no inflationary increase for those children aged 16+, as described below.

Child's age	Current Hampshire Rates 06/07	New national minimum recommended rate 07/08	Proposed new Hampshire rate 07/08
0-1 yr	£102.62	£111	£111.02
2-4 yrs	£102.62	£114	£114.03
5 - 10 yrs	£117.46	£127	£127.05
11 - 15 yrs	£146.09	£144	£146.09
16 +	£189.14	£169	£189.14

3.3 Where a child has a particular additional need which incurs extra expense for a foster carer, social workers can make a case to the Exceptional payments panel to ensure that a child is not disadvantaged and that foster carers are not out of pocket

3.4 Foster carers emphasise that training and support are as important to them as the level of allowances and fees, and the County Council ensures that a foster carers are supported and their contribution recognised, by offering a range of support service, including a full calendar of training for foster carers, and an independent support service to foster carers who have a complaint or allegation made against them.

3.5 Foster carers are also given free access to a wide range of musical events and workshops for their families and the children they care for and free access to a range of leisure and sports facilities across the county. They are also invited to regular celebratory events which recognise and value the long service and outstanding commitment to fostering which is demonstrated by many of the County's foster carers.

4 Adoption Allowances

4.1 There are 195 children in Hampshire as at January 2007, who are receiving an adoption allowance to support their adoptive placements. This compares with 189 in January 2006 and 185 in January 2005 representing a net increase of 6, with some children leaving the scheme and others joining in the last year.

4.2 There are a number of different adoption allowance scheme s which have been introduced in response o different Regulations over the last 15years. Details of the rates of allowances are in the table below.

4.3 In December 2005 the most recent Adoption Support Regulations came into force, which built on the Adoption Support Services Regulations 2003. The Regulations emphasise that adopters should be encouraged to seek financial support in the first instance through universal benefits and allowances such as Tax credits and child benefits. The aim is to decrease the number of families dependant upon Adoption Agencies to enhance their weekly income, and enable agencies to provide one off grants or practical services rather than ongoing financial support.

4.4 Adopters are able to request an assessment for financial support at any time during the adopted child's childhood. This may be in the form of a one off grant in order to meet the needs of a specific child or children, such as assistance to purchase a vehicle, or to adapt a property for a child with special needs, or by paying a regular weekly allowance to enhance a family's income

4.5 The 2005 Regulations introduced a standard, national formula for assessing adopters' eligibility for an allowance, although the amount payable remains the decision of the County Council. In Hampshire, the maximum amount payable under the assessed scheme is two thirds of the maximum fostering allowance. The same rate is paid in respect of kinship care, Special Guardianship and Residence Order allowances.

4.6 The amount awarded to each carer is subject to formal annual review or can take place earlier if there is a change of circumstance.

4.7 In situations where an existing foster carer applies to adopt a child for whom they are caring, the level of allowance payable is closer to the rate paid under the fostering allowance scheme. This approach means that children are not disadvantaged by having to remain in care, where the only barrier to adoption may be a financial one. In 2004/05 11 children were adopted by their foster carers and in 2005/06, 12 children were adopted by their foster carers. So far in 2006/07, 10 children have been adopted by their foster carers.

4.8 For those children who are supported by way of a weekly adoption allowance, it is proposed to continue to set the maximum rate payable under the current scheme at two thirds of the fostering allowance, as in previous years. The amount payable is shown in the table below.

Adoption allowances payable under previous regulations are calculated differently and have different maximum rates. It is proposed that those allowances should also be increased by 2.5%. The amounts payable are shown in the tables below. No children are paid under Scheme One any longer.

Schemes two and three ( these apply only to Adoption and Residence Order allowances)

Scheme Four ( this applies to Kinship care, Adoption, Residence and Special Guardianship order allowances

Age Band	2006/07	Age Band	2007/08
0 - 4years	£68.39	0-1yr	£73.99
5 - 11years	£78.33	2-4yrs	£76.02
12-15yrs	£97.37	5-10yrs	£84.70
16 + ( where applicable)	£126.07	11-15yrs	£97.37
		16+yrs	£126.07

5. Residence Allowances

5.1 Residence Allowances can be paid in circumstances where a child or children have been or would otherwise have been in the care of the Local Authority, and the need for the child to be in care is prevented or ceases when a Residence Order is granted. The most common situations are where a relative or current carer offers to care for a child or children on a permanent basis, and to take legal responsibility for the child.

5.2 Applicants are financially assessed and awarded up to the same maximum level as the allowances granted for Adoption, Special Guardianship or kinship care, unless the applicant is already receiving a fostering allowance. In these cases the level of allowance payable is maintained in line with the fostering allowance. This approach means that children are not disadvantaged by having to remain in care, where the only barrier to leaving care would be a financial one.

5.3 The numbers of children in receipt of a Residence Allowance is shown in the table below.

5.4 Children for whom Residence allowances are paid, fall under the same range of schemes as those who are adopted. It is proposed that Residence Allowances rates increase in the same way as adoption allowances as described at paragraph 4.8 above.

6. Special Guardianship

6.1 In December 2005 Special Guardianship was introduced as an amendment to the Children Act 1989. The aim was to encourage and enable relatives or current carers of children who are or who might otherwise be looked after by the Local Authority to offer permanent alternative care to a child and to take legal responsibility for that child. It awards a higher level of Parental Responsibility than that awarded under a Residence Order, without completely severing the legal ties with birth family in the way in which an Adoption Order does.

6.2 The Local Authority is required to provide the same range of financial and practical supports as are available to children who are adopted including weekly allowances , one off grants and payments, and other support services.

6.3 Since Special Guardianship Orders came into statute, 41 orders have been granted in respect of children in Hampshire, 33 of which were granted since April 2006.

6.4 It is proposed that the level of allowances payable in respect of Special Guardianship arrangements, are in line with the allowance arrangements and rates payable in respect of scheme four of Adoption, Residence and kinship care arrangements, as shown in the table at 4.8.

7. Kinship Care

7.1 Kinship care was developed in Hampshire during 2003/04 with a small but steadily increasing number of children being supported in this way each year. The numbers are shown in the table below.

There has continued to be a rise in the number of children being supported in this way despite the introduction of Special Guardianship Orders in January 2006, which offers a statutory alternative.

7.2 Hampshire County Council's policy enables children who would otherwise be in public care, to be cared for within their extended family without the transfer of Parental Responsibility under a court order. This arrangement is clearly meeting the needs of an increasing number of children.

7.3 For those children in kinship care whose carers are eligible to receive an allowance, the scheme four rate described in paragraph 4.8 applies. It is proposed that kinship care allowances rates increase in line with those allowances.

7.4 Kinship carers who are paid the Transitional allowance, having previously fostered the child in their care, continue to receive the annual grants for holiday, birthday and religious festival, representing four additional weeks of allowance in total. This approach is not taken in respect of those in receipt of transitional allowances under Adoption, Residence or Special Guardianship Orders.

8 Family Link Allowances

8.1 Currently around 120 children benefit from using this scheme which offers planned, family based respite care to children with disabilities. This service offers significant support to children and their families, and is one which Hampshire County Council is committed to continuing to develop. It is proposed that Family Link Allowances be increased by 2.5% as of 1 April 2007. This would mean that family link carers would receive the following rates per child:

	2006/07	2007/08
0 - 4hrs	£12.92	£13.24
4 - 8hrs	£23.69	£24.28
8 - 12hrs	£32.31	£33.12
Overnight	£19.38	£19.86
Waking Night	£32.31	£33.12
Whole week	£256.25	£262.64

9 Skill Fees

9.1 In Hampshire, all foster carers are automatically assessed as competent at skill level one as a minimum requirement. Thereafter they are invited to work towards levels two and three if they wish to do so, each requiring evidence of greater skill and competence in the fostering task.

9.2 At the end of January 2007, 61 foster carers are receiving a skill level two payment and 105 foster carers are receiving a skill level three payment. In 2006 the numbers were 86 foster carers on level 2 and 165 on level three. This represents an overall decrease of 84 from the previous year, although the numbers of foster carers has increased slightly. This means that more foster carers are `level one' carers ie in receipt of no additional fee income, only an allowance, these being new or less experienced carers, or those who are employed in other work in addition to fostering for the County Council.

9.3 A small number of foster carers (35) remain on the Project Care Scheme which pays a fee of £127.19 per child per week.

9.4 A pilot scheme introduced during 2004 enabled ten foster carers to receive a higher fee, which is more in line with that offered by Independent Fostering Agencies. This is now being extended to introduce a level 4 and a Level 5 fee, as represented in the table at 9.5. Foster carers are able to join or leave the level 4 and 5 schemes depending on their circumstances and the level of need of the child or children in their care. There are currently 2 foster carers on level four and 11 on level five. There are a large number of carers who meet the criteria for levels four and five and who would be keen to take on the extra responsibilities involved in those roles. However the number of carers who can join the scheme is being limited at present until the scheme is formalised and the necessary budget provision identfied.

9.5 It is proposed that all of the 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).

	2006/07	2007/08
Level 2	£60.27	£61.81
Level 3	£82.25	£84.28
Level 4	£128.10	£131.32
Level 5	£256.20	£262.64
Project Care Fee	£127.19	£130.34

10 Miscellaneous expenses

10.1 In addition to standard fees and allowances the following increase are proposed to a range of miscellaneous expenses.

10.2 The Hampshire Fostering Network is a committee of foster carers which promotes and supports the recruitment and retention of foster carers, by organising events where foster carers can be consulted over changes and developments to the service, and their own children as well as fostered children, invited to participate and contribute to the service. The Committee also ensures that Hampshire foster carers are represented at fostering events at a regional and national level. It is anticipated that this work will increase in the coming year, as the recommendations in respect of Foster carers which are contained in the Green paper , Care matters: transforming the lives of children and young people' are explored and considered further.

10.3 To this end, an annual budget is allocated to the committee to support its activities, which include two evening social events, twelve committee meetings and an annual sports and fun day. It is proposed to increase this from £5,000 to £6,000 in 2007/08 to enable the committee to organise and ensure greater participation in all events across the whole county.

10.4 Child care rates, to ensure that foster carers are able to attend training and other important meetings, are proposed to increase from £4.20 per hour to £4.31per hour.

10.5 The mileage rate for essential travel for foster carers is proposed to increase from 42p per mile to 43p per mile. The same amount is paid to adopters for journeys undertaken during the introduction of the child to their new family.

10.6 Adoption and fostering panels, of which there are 10 each month in Hampshire, play a vital role in ensuring that the standard of foster carers, adopters and plans for children, meet or exceed the minimum statutory requirements. The membership of such panels is laid down in regulation and is mostly made up of members who are independent of the County Council.

10.7 A small allowance is made available to independent panel members in recognition of their commitment to the task and to offset expenses associated with their attendance, such as travel and childcare costs. It is proposed that the rate payable to panel members of £50 per panel increase by 2.5% to £51.25. It is also proposed that travel expenses are reimbursed at a rate of 43p per mile in line with those paid to foster carers, adopters and other carers.

11 Consultation

11.1 Consultation with foster carers, kinship carers and a range of staff working with and supporting all carers, has taken place. Whilst carers acknowledge that the allowance they receive is only part of a package of support available to them, it is a basic and very important part of that package. Of equal importance is the assurance that carers can access additional or specialist services throughout the child or young person's childhood and into adulthood. The difficult and uncertain start which these young people have had, means that it is not possible to predict what services might be required in the future. Carers would like assurances that their requests for additional support will be responded to and as this is not always possible, they are keen that the basic level of allowances should be adequate. Some concerns have been expressed at the notion of carers in Hampshire being paid a minimum rate, as this does not always recognise the expense associated with living in a County where housing costs are high, and the cost of living generally is above the national average.

12 Legal implications

11.1 All the above allowances are made available in response to legislation relating to adoption, Special Guardianship, Residence Orders and children in care, primarily the Children Act 1989 and the Adoption and Children Act 2002.

13 Financial implications

12.1 Funding has been identified to meet the costs of the proposed increases which are primarily within the inflationary increase agreed by Cabinet.

14 Personnel implications

14.1 None

15 Impact assessment

15.1 Race and equality impact assessment has been considered in the development of this report and no adverse impact has been identified.

16 Crime prevention issues

16.1 There is no identifiable impact on crime prevention contained in these proposals

17 Views of the Local County Councillor

10.1 The proposals in this report affect children and carers across all Electoral Divisions, therefore specific consultation has not been carried out.

Action 100 D - Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have 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