FINANCE
Most of our members have questions about finances and any extra support that they can get.
This page is by no means a definitive answer to everyone's questions but we hope it will point you in the right direction.
Looked After Child
If your child is "LAC" and you are fostering them, you should be paid the same rate as a non-related foster carer (for the maintenance element).
You are not entitled to the "wage" element that non-related foster carers get.
This said, there are various Local Authorities looking into this as the argument is if a Kinship Foster Carer goes through the same checks, training and has the same role as a non-related carer, why shouldn't they be entitled to both elements? Some LAs are now looking into enhancing payments dependent upon the levels of training a Kinship Carer has undertaken. This is a new idea and very much a work in progress, so very early days but we will keep you posted.
If your child is LAC, you will not have parental responsibility and therefore will not be entitled to Child Benefit and Tax Credits for that child.
Residence Order
This gives you joint Parental Responsibility for the child in your care.
You are able to claim for Child Benefit and Tax credits.
You MAY be entitled to a Residence Order Allowance but this is very much dependent on the involvement of Social Services in your particular case and it may be at their discretion.
Special Guardianship Order
Part of the assessment for this Order involves an assessment on the family's needs; financial and otherwise.
It is means tested and cannot duplicate any other benefits you can access with this Order (ie, Tax Credits and Child Benefit).
It is ALWAYS a good idea to request your Local Authority to provide a breakdown of how they achieve the final figure they are paying you (mistakes do happen!)
You will need to provide proof of your earnings, outgoings and any benefits you have coming into the home.
When going through the process of an SGO it is VERY important to check through the support package; will it be means tested?, will it be paid up to the age of 18?, is there any grey areas you need clarification on?
Make sure you ASK and get the answer in writing BEFORE the SGO is finalised.
You need to be happy and feel secure that you can financially manage bringing up this child into adulthood.
Don't risk a placement breaking down because of financial hardships.
Section 17 Payments
These are one-off, very often discretionary, payments that Local Authorities can make in order to help with a child.
Examples of this may be travel expenses, start up costs for having a child come to live with you, etc.
Funding is there for this but you do have to ASK and push as you may not be offered it!
One of our members, Kerri Moorby, has very kindly come up with a table of the 3 main statuses of a child and what the implications are,both legally and financially.
The financial side of things have been highlighted in RED
|
|
Children on Care
Orders, Kinship Foster Carers
|
Children on RO |
Children on SGO |
|
Who
has PR? |
Local
Authority
Mothers,
fathers/anyone else who has acquired PR by court order of agreement with
parents |
Person with RO, mothers, father/anyone else who has acquired PR by court order or
agreement with parents |
Person
with SGO can exercise PR to exclusion of anyone else with PR; mothers,
fathers/anyone else who has acquired PR by court order or agreement with
parents |
|
Who
can make decision on behalf of the child |
Carer
can make day to day decisions about the child’s care in consultation with
the Local Authority, but Local Authority makes all important decisions about
child in consultation with LA, but
only those with PR can consent to medical treatment, leaving UK, etc |
Person
with RO can make decision without having to consult with others with PR
(although should for important decisions) but some restrictions e.g.: name
change, consent to adoption/placement, change of religion) |
Person
with SGO who has the right to exercise PR to the exclusion of anyone else
with PR, but some restrictions e.g.: name change, consent to adoption or
adoption placement, change of religion) |
|
Is
the child classed as a Looked After Child
|
Yes |
No |
No |
|
Are
Statutory visits required – these are visits made by a Social Worker either
monthly or bi-monthly |
Yes |
No as
child is not classed as Looked After |
No as
child is not classed as Looked After |
|
Can
the child be removed from me?
|
Yes
by Local Authority |
No
unless RO revoked or Local Authority has EPO or CO |
No
unless SGO revoked or LA has EPO or CO |
|
Can I
take the child out of the UK?
|
Only
with the consent of all those with PR for up to up to 1 month, unless court
gives leave |
For
up to 1 month, otherwise consent of all those with PR or leave of court
required |
For
up to 3 months, otherwise consent of all those with PR or leave of court
required |
|
Can
carers appoint a guardian? |
Parents
with PR/guardians can appoint a guardian – you need to seek further advice on
when appointment takes effect |
No, person with RO cannot appoint guardian but parents with PR/guardians can
appoint a guardian – you need to seek further advice on when appointment
takes effect |
SGO
holders can appoint a guardian – you will need to seek advice on when
appointment takes effect |
|
Can I
claim Child Benefit |
No,
as a Kinship Foster Carer the Child Benefit amount is reflected in the foster
care rate |
Yes,
make sure that you let them know that you have an SGO when you apply |
Yes,
make sure that you let them know that you have an SGO when you apply |
|
Can I
claim Child Tax Credit
|
No |
Yes |
Yes |
|
Can I
claim Working Tax Credit |
Yes,
as a Kinship Foster Carer you can claim as being self-employed for the working tax
element |
Yes |
Yes |
|
Does
claiming a financial allowance effect housing/council tax benefits |
Yes,
as it is classed as income |
No, from April 2011 the rules changed and housing benefit/council tax benefit is
no longer reduced if you receive a Residence Allowance |
No, from April 2011 the rules changed and housing benefit/council tax benefit is
no longer reduced if you receive an SGO Allowance |
|
What
happens to the Childs Trust Fund |
|
You
can apply to have the Child's Trust Fund changed as holder of RO and choose where
it is placed, though it still stays in the child’s name |
You
can apply to have the Childs Trust Fund changed as holder of RO and choose
where it is placed, though it still stays in the child’s name |
|
Is
the child entitled to the Looked after Child status for school admissions |
Yes –
as they are a Looked After Child |
Yes - Children who have previously been looked
after but immediately after being looked after became subject to an adoption,
residence, or special guardianship order. |
Yes - Children who have
previously been looked after but immediately after being looked after became
subject to an adoption, residence, or special guardianship order. |
|
Am I
legally financially responsible or a
child |
No –
parents remain legally financially responsible |
No –
parents remain legally financially responsible for their child throughout the
time an RO exists. This means that you do not become financially responsible for them in legal terms
although you may do in practice (for example when it comes to means tested
benefits). |
No –
parents remain legally financially responsible for their child throughout the
time a SGO exists. This means that a
Special Guardian does not become financially responsible for them in legal terms
although they may do in practice (for example when it comes to means tested
benefits). |
|
Are
regular Looked after Children Medicals required |
Yes
they are a statutory requirement
Children
under 5 = 2 a year
Children
over 5 = 1 a year |
No as
child is not classed as Looked After |
No as
child is not classed as Looked After |
|
Are
regular Looked after Children reviews required
|
Yes
they are a statutory requirement these take place every 6 months or within 28
days of change of placement |
No as
child is not classed as Looked After |
No as
child is not classed as Looked After |
|
Are
regular PEP’s (Personal Education Plans) required |
Yes
these are to take place every 6 months as a minimum. If there is a change to placement a PEP should
take place within 10 days |
No as
child is not classed as Looked After |
No as
child is not classed as Looked After |
STANDARDISED MEANS TEST MODEL FOR
ADOPTION AND SPECIAL GUARDIANSHIP FINANCIAL SUPPORT
MEANS TEST SPREADSHEET (to be used in conjunction with above)
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