Contact: Gill Horrobin Tel: 01962 847263 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 At the Decision Day in January 2008 the Executive Member for Children and Families considered a confidential report relating to a proposed investment of£1.4m into Hampshire's Fostering Service. The report detailed a business case and implementation plan that has now received approval from Cabinet and the County Council. This report now addresses how those proposals will be gradually implemented and clarifies the work that will be undertaken over the coming weeks.

1.3 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.

1.4 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.

1.5 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.

1.6 The allowance levels proposed for 2008/09 now match Fostering Network Recommended Rates for fostering allowances as opposed to National Minimum Rates, the latter being those rates which all fostering services are required to pay following the implementation of The Children Act 2004. The proposed Transitional Allowances are in line with Fostering Network Rates and other allowances, as defined within the report, are either aligned to the National Minimum Fostering rates or increased by 2.5%. Allowances are calculated at a weekly rate unless stated otherwise.

2 Recommendations

That the Executive Member for Children & Families approves the following changes to allowances, fees and associated expenses so as to:

· increase Fostering Allowances to match Fostering Network Recommended Rates as at 1 April 2008 (Reference Table 1);

· increase Adoption Allowances to keep them aligned with National Minimum Rates for fostering as of 1 April 2008 (Reference paragraph 5.8, Table 2);

· increase Residence Allowances in line with Adoption Allowances as of 1 April 2008 (Reference paragraph 6.4, Table 3 );

· increase Special Guardianship Allowances in line with Adoption Allowances as of 1 April 2008 (Reference paragraph 7.4, Table 3);

· increase Kinship Care Allowances to keep them aligned with National Minimum Rates for Fostering Allowances as of 1 April 2008 (Reference paragraph 8.3, Table 3);

· increase Family Link Allowances by 2.5% as of 1 April 2008 (Reference paragraph 9.1, Table 4);

· increase Foster Carers Skill Fees by 2.5% as of 1 April 2008 (Reference paragraph 10.5, Table 5) on the basis that this is an interim measure whilst further work is carried out to implement the new skills fees system agreed at the Executive Member Decision Day in January;

· increase additional miscellaneous expenses associated with the above activity (Reference Section 11)

3 Background

3.1 There were 1,004 children living full-time in the care of Hampshire County Council at 31 January 2008, 561 of whom were fostered with Hampshire foster carers (including 137 children in family and friends placements) and 29 placed for adoption. In addition, 147 children were placed with Independent Fostering Providers. Therefore, 737 children were living with approved family carers at the end of January 2008 (accounting for 73% of the care population looked after full time).

3.2 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.

3.3 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.

3.4 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.

4 Fostering Allowances

4.1 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 for 2007/08 have been in line with National Minimum Rates with the exception of the rate in respect of young people aged 16+ which is higher. However, in order for Hampshire to become more competitive in the market place, and attract more carers to foster for Hampshire, the proposed rates for 2008/09 are now in line with Fostering Network Recommended Rates. These rates reflect the true cost of looking after someone else's child.

4.2 It is therefore proposed to increase allowances as detailed in Table 1 below:

Table 1: Fostering Allowances

4.3 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 foster carers are supported and their contribution recognised, by offering a range of support service, including a full calendar of training specifically for carers and an independent support service to foster carers who have a complaint or allegation made against them.

4.4 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.

5 Adoption Allowances

5.1 There are 209 children in Hampshire as at January 2008, who are receiving an adoption allowance to support their adoptive placements (this includes 18 that receive a transitional allowance - see paragraph 5.7). This compares with 208 in March 2007 and 197 in March 2006 representing a net increase of 1, with some children leaving the scheme and others joining in the last year.

5.2 There are a number of different adoption allowance schemes which have been introduced in response to different Regulations over the last 15 years. Details of the rates of allowances are in the table below.

5.3 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.

5.4 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

5.5 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 National Minimum Fostering Allowance. The same rate is paid in respect of Kinship Care, Special Guardianship and Residence Order allowances.

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

5.7 In situations where an existing foster carer applies to adopt a child for whom they are caring, the level of allowance payable (transitional allowance) for new arrangements from April 2008, will be aligned to Fostering Network Recommended Rates. This approach means that children will not be disadvantaged by having to remain in care, where the only barrier to adoption may be a financial one. In 2005/06, 12 children were adopted by their foster carers, in 2006/07, 10 children and so far in 2007/08 6 have been adopted by their foster carers.

5.8 For those children who are supported by way of a weekly adoption allowance, it is proposed to continue to set the rate payable under the current scheme (Scheme Four) at two thirds of the National Minimum Fostering Allowance, as in previous years. The amounts payable are shown in the Table 3 below.

5.8.1 Adoption allowances payable under previous regulations are calculated differently and have different maximum rates. It is proposed that those allowances should be increased by 2.5%. The amounts payable are shown in Table 2 below. No children are paid under Scheme One any longer.

Table 2: Schemes Two and Three (2008/09) - These Apply Only to Adoption and Residence Order Allowances

Scheme Two	Scheme 2 Enhancements	Scheme Three
0-4 yrs = 43.82	Category A = 6.86 Category B = 21.00 Category C = 35.00	0-4 yrs = 61.18
5-7 yrs = 52.43		5-10 yrs = 79.10
8-10 yrs =58.94		11-15 yrs = 101.36
11-12 yrs = 65.45		16+ yrs = 134.96
13-15 yrs = 74.55
16+ yrs =94.71

6. Residence Order Allowances

6.1 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 shared legal responsibility for the child.

6.2 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 (Transitional Allowance) for new arrangements from April 2008 is aligned with Fostering Network Recommended Rates. This approach means that children will not be disadvantaged by having to remain in care, where the only barrier to permanence outside the care system may be a financial one.

6.3 The numbers of children in receipt of a Residence Allowance has increased since March 2005 from 83 to 116 as at the end of January 2008.

6.4 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 5.8 above.

7. Special Guardianship

7.1 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. A Special Guardianship Order 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.

7.2 According to assessed need, the Local Authority is required to provide a similar range of financial and practical supports as are available to children who are adopted. This includes, for example, weekly allowances, one off grants and payments and other support services.

7.3 Since Special Guardianship Orders came into statute, 53 orders have been granted in respect of children in Hampshire, 31 of which were granted since April 2007.

7.4 It is proposed that the level of allowances to eligible recipients, 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 3 below.

7.5 For those applicants granted a Special Guardianship Order who already receive a fostering allowance the level of allowance payable (Transitional Allowance) for new arrangements from April 2008 is aligned with Fostering Network Recommended Rates. This approach means that children will not be disadvantaged by having to remain in care, where the only barrier to permanence outside the care system may be a financial one.

Table 3: Scheme Four ( this applies to Kinship Care, Adoption, Residence and Special Guardianship Order allowances)

Age Band	2007/08	2008/09
0-1yr	73.99	76.02
2-4yrs	76.02	77.98
5-10yrs	84.70	86.66
11-15yrs	97.37	98.70
16+yrs	126.07	126.07

8. Kinship Care

8.1 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. In January 2005, 12 children were in kinship care arrangements and in October 2007, this had increased to 70, despite the introduction of Special Guardianship Orders in January 2006, which offers a statutory alternative. As at the end of January 2008 allowances were being paid in respect of 53 children.

8.2 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.

8.3 For those children in kinship care arrangements whose carers are eligible to receive an allowance, the Scheme Four rate shown above in Table 3 applies. It is proposed that kinship care allowances rates increase in line with those allowances.

8.4 Family and Friends foster carers who are close relatives and who are receiving a fostering allowance in respect of a child in their care, may enter into a Kinship Care arrangement. For these arrangements, the level of allowance payable (Transitional Allowance) for new arrangements from April 2008 is aligned with Fostering Network Recommended Rates. This approach means that children will not be disadvantaged by having to remain in care, where the only barrier may be a financial one.

9. Family Link Allowances

9.1 Currently around 110 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 2008. This would mean that family link carers would receive the rates per child shown in Table 4 below

Table 4: Family Link Allowances

	2007/08	2008/09
0 - 4hrs	13.24	13.57
4 - 8hrs	24.28	24.89
8 - 12hrs	33.12	33.95
Overnight	19.86	20.36
Waking Night	33.12	33.95
Whole week	262.64	269.22

9 Skill Fees

10.1 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.

10.2 A small number of foster carers (15 sets of carers caring for 26 children) remain on the Project Care Scheme which pays a fee of £130.34 per child per week.

10.3 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 was extended to introduce a level 4 and a Level 5 fee, as represented in Table 5 below. 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.

10.4 The breakdown in relation to the percentage of carers at each skills level from 1 to 5 is in the region of 45%, 16.5%, 32%, 1.5% and 5% respectively.

10.5 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). This is an interim measure whilst in-depth work is carried out, in consultation with carers, to move towards implementing the new skills fee structure of payments agreed at the Executive Member Decision Day in January. The rates are shown in Table 5 below:

Table 5: Skills Fees

	2007/08	2008/09
Level 2	61.81	63.36
Level 3	84.28	86.39
Level 4	131.32	134.60
Level 5	262.64	269.21
Project Care Fee	130.34	133.60

10 Miscellaneous expenses

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

11.2 Child care rates, to ensure that foster carers are able to attend training and other important meetings, are proposed to increase from £4.31 per hour to £4.42 per hour (an increase of 2.5%).

11.3 The mileage rate for essential travel for foster carers is proposed to increase from 43p per mile to 44p per mile. The same amount is paid to adopters for journeys undertaken during the introduction of the child to their new family.

11.4 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.

11.5 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 £51.25 per panel increase by 2.5% to £52.53. It is also proposed that travel expenses are reimbursed at a rate of 44p per mile in line with those paid to foster carers, adopters and other carers.

11 Consultation

12.1 Consultation with foster carers, kinship carers and a range of staff working with and supporting all carers, takes place on an ongoing basis. 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. The proposed increase in fostering allowances to Fostering Network Recommended Rates will ensure this is the case.

12.2 There is a significant amount of detailed planning to take place over the coming weeks in order to fully implement all components of the revised structure in line with the business case for Hampshire's Fostering Service. Whilst this report highlights the move from National Minimum Rates to Fostering Network Recommended Rates as at April 1^st 2008, further work is required to move through the transition from the current skills fee structure to the new one.

12.3 It is imperative that the detailed planning involves foster carers and meetings have already been scheduled to begin the process.

12 Legal implications

13.1 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

14.1 Funding has been agreed to meet the identified costs within the business case for the period 2008-11.

14 Personnel implications

None

15 Impact assessment

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

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

17 Views of the Local County Councillor

18.1 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