Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report :

EXECUTIVE SUMMARY

1) Summary of Decision Area:

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 outlines how those proposals have been implemented.

2) Issues Covered in Report:

2.1. 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.

2.2. 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.

2.3. 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.

2.4. The allowance levels proposed for 2009/10 match Fostering Network Recommended Rates for fostering allowances as opposed to National Minimum Fostering Rates, the latter being those rates which all fostering services are required to pay following the implementation of The Children Act 2004. The Fostering Network Recommended Rate is based on the real costs of looking after someone else's child and is the rate agreed for Hampshire foster carers by the Executive Member for Children and Families from April 2008. Other allowances, as defined within the report, are either aligned to the National Minimum Fostering Rates or increased by 2.25%. Allowances are calculated at a weekly rate unless stated otherwise.

3) Recommendations:

It is recommended that: the Executive Member for Children and Families approves the following changes to allowances, fees and associated expenses so as to:

3.1. Increase Fostering Allowances to match Fostering Network Recommended Rates as at 1 April 2009 (Reference paragraph 4.1, Table 1);

3.2. Increase Adoption Allowances to keep them aligned with National Minimum Rates for fostering as of 1 April 2009 (Reference paragraph 5.8, Table 3); or by 2.25% for Allowances paid under previous regulations (Reference paragraph 5.9, Table 2);

3.3. Increase Residence Allowances in line with Adoption Allowances as of 1 April 2009 (Reference paragraph 6.4, Table 3); or by 2.25% for Allowances paid under previous regulations (Reference Table 2);

3.4. Increase Special Guardianship Allowances in line with Adoption Allowances as of 1 April 2009 (Reference paragraph 7.3, Table 3);

3.5. Increase Kinship Care Allowances to keep them aligned with National Minimum Rates for Fostering Allowances as of 1 April 2009 (Reference paragraph 8.3, Table 3);

3.6. Increase Family Link Allowances by 2.25% as of 1 April 2009 (Reference paragraph 9.1, Table 4);

3.7. Increase Foster Carers Skill Fees by 2.25% as of 1 April 2009 (Reference paragraph 10.5, Table 5);

3.8. Increase by 2.25% additional miscellaneous expenses associated with the above activity (Reference Section 11)

MAIN REPORT

1) Purpose of the Report:

1.1. To agree the annual increase in fees and allowances in respect of children living away from home and provide some context regarding each of those arrangements.

2) Contextual Information:

2.1. There were 1,063 children living full-time in the care of Hampshire County Council as at 31 January 2009, 634 of whom were fostered with Hampshire foster carers (including 200 children in family and friends placements) and 42 placed for adoption. In addition, 166 children were placed with Independent Fostering Providers. Therefore, 842 children were living with approved family carers as at the end of December 2008 (accounting for 79% of the care population looked after full time).

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 who 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 into 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) Key Issues:

3.1. The following sections cover the key issues and include the various schemes. Different schemes are inflated using different criteria, some historical which will phase out when children reach the age of 18 years. The criteria for each are portrayed accordingly.

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. However the rate of allowances paid by Hampshire for 2008/09 have been in line with the Fostering Network Recommended Rates. These rates are higher which has enabled Hampshire to become more competitive in the market place, and attract more carers to foster for Hampshire. The Fostering Network Recommended 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 services, 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 231 children in Hampshire as at January 2009, who are receiving an adoption allowance to support their adoptive placements (this includes 20 that receive a transitional allowance - see paragraph 5.7). This compares with 209 as at January 2008 and 195 as at January 2007 representing a net increase of 22, 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 shown in Table 2 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 2009, 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 2006/07, 10 children were adopted by their foster carers, in 2007/08, 7 children and so far in 2008/09 1 child has 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.

5.9. Adoption allowances payable under previous regulations are calculated differently and have different maximum rates (Schemes Two and Three). It is proposed that those allowances should be increased by 2.25%. The amounts payable are shown in Table 2 below. No children are paid under Scheme One any longer.

Table 2: Schemes Two and Three (2009/10) - These Apply Only to Adoption and Residence Order Allowances

Scheme Two	Scheme 2 Enhancements	Scheme Three
0-4 yrs = 44.80	Category A = 7.00 Category B = 21.49 Category C = 35.77	0-4 yrs = 62.58
5-7 yrs = 53.62		5-10 yrs = 80.85
8-10 yrs =60.27		11-15 yrs = 103.67
11-12 yrs = 66.92		16+ yrs = 137.97
13-15 yrs = 76.23
16+ yrs =96.81

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 has already been receiving a fostering allowance for a period of six months or more. In these cases the level of allowance payable (Transitional Allowance) for new arrangements from April 2009 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 133 as at January 2009. There are no longer any carers being paid a Residence Order Allowance under Scheme 2.

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. 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.

7.4. 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 2009 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.

7.5. The numbers of children in Hampshire in receipt of a Special Guardianship Order Allowance as at January 2009 is 80. Of those, 49 are in receipt of Transitional Allowances.

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

Age Band	2008/09	2009/10
0-1yr	76.02	77.98
2-4yrs	77.98	80.01
5-10yrs	86.66	89.32
11-15yrs	98.70	101.36
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. The introduction of Special Guardianship Orders in January 2006 has offered a statutory alternative for some children. As at January 2009 Kinship Care Allowances were being paid in respect of 49 children, the number having stabilised over the last year.

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 some 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. The allowance is paid on a sliding scale and a financial assessment will determine whether the carer is eligible for the whole, or a part of the allowance, within Scheme Four. It is proposed that Kinship Care Allowance 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 where the child has been placed in excess of six months , the level of allowance payable (Transitional Allowance) for new arrangements from April 2009 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 86 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 2.25% as of 1 April 2009. This would mean that family link carers would receive the rates per child shown in Table 4 below

Table 4: Family Link Allowances

	2008/09	2009/10
0 - 4hrs	13.57	13.88
4 - 8hrs	24.89	25.45
8 - 12hrs	33.95	34.71
Overnight	20.36	20.82
Waking Night	33.95	34.71
Whole week	269.22	275.31

10) Skills Fees

10.1 In Hampshire, new foster carers undertake a probationary year during which time they are expected to evidence they can meet the Children's Workforce Development Council Induction Standards for Foster Carers. They are then assessed as competent at skill level one. New carers with existing, transferable child care skills may be assessed as already competent at skills level one and start fostering at this level. Level one foster carers do not receive a skills fee

10.2 There have been a number of different skill fee schemes which have been introduced to attract and retain carers in Hampshire by recognising carers skills and competencies. Skills levels two and three were introduced to encourage carers to work towards these levels if they wished to do so, each level requiring evidence of greater skill and competence in the fostering task and evidence of improving outcomes for the children in their care.

10.3 A small number of foster carers remain on the Project Care Scheme which currently pays a fee of £133.60 per week. As at January 2009 22 Project Care fees were in payment.

10.4 A pilot scheme introduced during 2004 enabled ten foster carers to receive a higher fee, which was more in line with that offered by Independent Fostering Providers. This was extended to introduce a level four and a level five fee. Foster carers were able to join or leave the level four and five schemes depending on their circumstances, skills and the level of need of the child or children in their care.

10.5 From April 2008 the skill level structure changed with the implementation of a new skills fee structure of payments agreed at the Executive Members Decision Day in January 2008. Hampshire has moved from five to three skills levels, each aligned to revised criteria (competencies) and evidenced outcomes for children in placement. Under the new scheme, skill level fees are paid per child for each child placed after the carer has been progressed to level 2 or level 3. These skills fees are sufficiently competitive to attract and retain skilled carers who might otherwise be attracted to Independent Fostering Providers.

10.6 Transitional arrangements have been put in place to move carers from the old to the new structure During this transition period some foster carers remain on old levels two and four skills fees. For county carers the fee is now paid per child

10.7 It is proposed that all fees be increased by 2.25%. The rates are shown in Table 5 below:

Table 5: Skills Fees

	2008/09	2009/10
Level 2 Transitional	63.36	64.82
Level 2 New Scheme	86.39	88.34
Level 4 Transitional	134.60	137.62
Level 3 New Scheme	269.21	275.24
Project Care Fee	133.60	136.64

11) Miscellaneous expenses

11.1 In addition to standard fees and allowances the following increases 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 £4.42 per hour to £4.52 per hour (an increase of 2.25%).

11.3 The mileage rate for essential travel for foster carers is proposed to increase from 44p per mile to 45p 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 £52.53 per panel increase by 2.25% to £53.71. It is also proposed that travel expenses are reimbursed at a rate of 45p per mile in line with those paid to foster carers, adopters and other carers.

12) 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. Ongoing payment of allowances to carers in line with the Fostering Network Recommended Rates will ensure this is the case.

12.2. Carers have been fully consulted during the implementation of the revised skill fee structure in line with the business case for Hampshire's Fostering Service.

13) Financial Implications:

13.1. It is proposed to increase standard weekly fostering allowances by 2.8%. This exceeds the corporate inflation allocation of 2.25%. This would represent an on-going pressure of approximately £30,000 in 2009/10 against the agreed budget. All other allowance increases would be met within the corporate inflation allocation.

14) Outline of Options:

Not applicable

15) Option Analysis / Comparison:

Not applicable

16) Conclusions:

16.1. This report outlines 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.

16.2. The decision will enable more children to live in family placements by ensuring that a range and choice of placements is available so that each child can be carefully matched to a family setting which meets their needs. With a stable family placement, children are more likely to be healthy, stay safe, enjoy and achieve, make a positive contribution and achieve economic wellbeing as adults.

17) Recommendations:

Please see Executive Summary for recommendations

CORPORATE OR LEGAL INFORMATION: