Care Leavers Financial Support

1. Guidance Relating to Financial Support

Leaving Care Guidance states that allowances “should generally be well above the level which would have been supplied through the benefits system". In other words, no less than a young person would have received if they had been entitled to claim Universal Credit or any other form of benefit at the rates which would have applied to them and their circumstances. For most 16 and 17 year old care experienced young people this would normally be the higher rate of Personal Allowance plus any premiums due to any special circumstances. 

The rates for Wiltshire have been set with reference to the above principle.

The Financial Support table (section 15) defines the type of support or entitlement for each category of care experienced young people. Information can be provided to individuals upon request. 

Personal Advisers are expected to maximise, and try and ensure, the take up of benefits before making assessments for Social Care' financial support.

2. Income Maintenance

“Eligible”

Young people by definition are 'Children in Care’ and will receive all the benefits of the looked after system. They will not receive allowances from leaving care schemes until they become Relevant.

“Relevant”

16-17 year olds will normally receive their primary source of income maintenance and accommodation costs from the Local Authority

“Eligible and Relevant”

Young people (16/17 year-olds), in many cases, will not be entitled to claim the major means-tested benefits; responsibility for this financial support lies with the Families and Children’s Services. (Where there are exceptions to this, they will be considered on a case by case basis.)

“Former Relevant”

The primary source of income for care experienced young people aged 18+ should come from training, benefits or work. The benefit entitlements of Former Relevant young people apply, as do individuals' rights to claim non means-tested benefits such as Disability Living Allowance.

Qualifying

3. Accommodation Costs

“Eligible”:

Accommodation costs will be met in the same way as other children in local authority foster care, residential care or other settings.

“Relevant”:

These young people’s needs for housing – with or without support on site – Families and Children’s Services

“Former Relevant”:

Housing costs will be met in the following ways:

• Young people aged 18 in Further Education/ Training /Unemployed and actively seeking work/Sick/Disabled on low incomes are entitled to claim Housing Benefit and Universal Credit;
• Aged 19+ in Further Education they are entitled to claim Universal Credit and not entitled to claim Housing Benefit and may need assistance with accommodation costs either from Families and Children’s Services or via college if applicable;
• Aged 18+ in Higher Education they are entitled to claim all Education Grants plus extra funding due to their status;
• Aged 19+ in Training/Unemployed and actively seeking work/Sick/Disabled or on low incomes are entitled to claim Universal Credit.

Young people in Higher Education will be supported with accommodation needs.

4. Leaving Care and Foster Care

In some circumstances, Relevant or Former Relevant young people may remain with their foster carers, as a supported lodgings offer or through Staying Put and the enhanced Staying Put offer  (which allows the continuation of the payment of fostering allowance until the young person concludes their school or college course “in the summer of their 18th year”) may apply.

However, legally after becoming 18 a young person cannot be looked after by the local authority and young people are seen as independent in their own right so their primary source of income should come from training, benefits or work like any other young person. Families and Children’s Services may top up funding received from other sources to maintain the arrangement.

When undertaking the leaving care assessment of need and developing the Pathway Plan by the 16th birthday, the Personal Advisor, child’s Social Worker (as applicable) and the Supervising Social Worker should have an initial meeting with the foster carer(s) to ascertain their views and expectations post 18.

If a young person is assessed as vulnerable or likely to require support post 18 to complete further or higher education, then the option of continuing the arrangement should be addressed within the foster carer’s annual review as well as in the young person’s leaving care assessment and Pathway Plan.

5. Implications for Foster Carers

The implications for Foster Carers offering placements after care should be discussed by the Personal Advisor, the child’s Social Worker and the Supervising Social Worker during the Pathway Planning process.

Currently all payments in respect of 18+ placements are taxable. The carers will need to complete a self-assessment form and are liable to pay Class 2 National Insurance contributions. A carer accommodating a young person post 18 may be able to claim a taxable allowance for each extended placement. However, they do need to declare all payments from Families and Children’s Services. Foster carers should seek advice from HMRC if required.

If a carer is claiming Housing Benefit in their own right then the young person cannot submit a Housing Benefit claim. Although the Benefits System generally treats foster carers in a reasonable way for example disregarding maintenance allowances, there are some anomalies, which may act as a disincentive to low income carers to continue post 18. Foster carers should seek advice from HMRC if required.

6. Incentives and Support in Education and Training

Apart from the income-based incentives of “relevant” young people to participate in education and training, the Local Authority has a duty to support care experienced young people in practical ways to enable them to gain academic and vocational qualifications.

Where “former relevant” young people are undertaking courses of further or higher education, this duty can remain up to the age of 24.

The educational and training needs of young people should be included in their Pathway or placement plans, and the financial arrangements for their courses checked by the relevant worker.

It should be borne in mind that most full-time students cannot claim means-tested benefits when in higher education, or in non-advanced education after the age of 19. Exceptions to this include lone parents and students with disabilities and health problems.

7. Special Equipment

Some courses, such as catering, hairdressing, beauty therapy etc require students to provide special equipment or clothing. Other courses require the purchase of stationery, books or other educational materials.

The Personal Advisor should itemise the cost of these items in the Pathway Plan and ensure that they are essential for the course.

Account should be taken of any grants, Educational Maintenance Allowance or other source of funding which could be accessed for this purpose before financial support from the Families and Children’s Service is agreed.

8. Other Educational Costs

In some cases, young people may need to pay an enrolment fee to join a course. They may be required to go on field or residential trips. There may also be travel costs incurred to get them to the training provider or educational establishment.

These and any other essential expenditure attaching to a course should be identified in the Pathway Plan. Relevant workers should ensure that various sources of funding have been maximised before additional expenditure from Families and Children’s Services is sought.

9. Grants and Loans

Eligibility for any grants or Student Loans will be checked with the Education Department by the Personal Advisor, using the support of the Virtual School if applicable. This would include Education Maintenance Allowance and any benefits for disabled students or lone parents.

10. Vacation Support and Living Away

Where a young person has to move away to study – e.g. at university – the Pathway Plan should make provision for their living arrangements both during term time and vacations.

11. Support in Employment

Pathway Plans should detail any support to be offered to young people looking to commence employment. Those not already working or participating in Education or Training should be registered for work to qualify for assistance in their job search and to receive National Insurance credits.

12. Access to Financial Support

Payment will normally be through a bank account, wherever possible. From time to time it may be necessary to make an arrangement to pay a young person in cash.

The decisions on which elements of the financial assistance will be paid directly to the young person and which will be managed on their behalf should take account of the individual needs and abilities of the young person.

13. Emergency Assistance

From time to time, it may be necessary to make emergency support available, in cash or kind for a care experienced young person. This will normally be through the use of the Team budget of the relevant social work team.

14. Tenancy Agreement

Young people under 18 cannot, by law, hold a tenancy. In these cases, the Director for Children, Schools and Families is authorised to sign a tenancy agreement on behalf of the Local Authority. The Local Authority will be the tenant and will allow the young person to occupy the property subject to abiding by the rules of the agreement.

Any tenancy agreement will expire when the young person attains the age of 18 and can take up a tenancy in their own right. Three months before the young person’s 18th birthday the Social Worker or Personal Adviser will assist the young person to transfer the tenancy (if applicable).

In some situations, the local authority can act as the accommodation Guarantor for a care experienced young person. The approval of the relevant Head of Service is required.

15. Wiltshire’s Allowances

The table below describes Wiltshire Council’s Families and Children’s Service allowances:

(* All figures will be subject to periodic review).

16. Payments

Budget Authorisation

Children in Care Team Manager (£1000,000) and Assistant Team Manager (£500 max), within overall delegated authority.

Aspiring Managers approve within overall delegated authority.

Authorisation Forms: What are they and what do they cover?

Financial Authorisation Form (FAF)

1. Payment of personal allowance will be made to a Bank/Building Society account of the young person's choice (no overdraft facility must be a stipulation);
2. Payment of the rent to the Landlord direct whilst Wiltshire Council are the Tenant;
3. Payments to young people's bank accounts will be made weekly in advance by BACS. The cash will be available for withdrawal on Tuesday of each week; in certain circumstances payments may be made from petty cash;
4. Payments to Landlords direct will be made in line with the Landlord's requirement, but in no cases more than 4 weeks in advance without the permission of the Team Manager;
5. Birthday payment will be made as close to the birthday date as possible;
6. Festival payments will be made early in the month that they falls;
7. Payment responsibility transfers to the Benefits Agency (Personal Allowance) and Housing Authority (housing) upon the young person's 18th birthday once Universal Credit/Job Seekers Allowance is in place.