Financial Arrangements for Care Leavers
Scope of this chapter
This procedure details the financial arrangements and support available for care leavers.
Relevant Regulations
Children (Leaving Care) Act 2000
Care Planning, Placement and Case Review (England) Regulations 2010
Care Leavers (England) Regulations 2010.
Related guidance
- Leaving Care and Transition
- The Children Act 1989 Guidance and Regulations - Volume 3: Planning Transition to Adulthood for Care Leavers
Amendment
This document has been produced with reference to the provisions of the Children (Leaving Care) Act and the revised Children Act 1989 Guidance and Regulations - Volume 3: Planning Transition to Adulthood for Care Leavers. It outlines the Local Authorities policy with regard to:
- Accommodation and maintenance for young people who have left care aged 16 and 17 years old;
- General assistance for care leavers up to their 25th birthday;
- Help with employment up to their 25th birthday;
- Help with education and training to the end of an agreed programme (including those 21Plus);
- Provision of vacation accommodation for care leavers in Higher Education or Further education residential courses;
- Support for young people who return to education post 21 years.
The provision applies to care leavers who are living independently or semi independently and where there are no placement funds to cover costs. It is not available to looked after young people living in foster placements or community homes where there are allocated budgets.
All allowances will be based on an assessment of need and set out in the Pathway Plan. The relevant level of authorisation must be sought and recorded before finance is agreed with a young person or payments made.
In order to support future economic wellbeing for children in care as they make the transition to adulthood there needs to be early emphasis on financial literacy and financial capability. It may be helpful to give appropriate fostering allowances such as pocket money, toiletries and clothing allowances direct to young people to help them begin to make financial choices and think about spending responsibly. Saving and debt avoidance should be encouraged and young people should be supported to open appropriate savings and bank accounts. All budgeting support and financial arrangements should be made clear in the young persons Pathway Plan.
Where there is a plan for a young person to be discharged from care prior to age 18, any budget authorisation for living and maintenance costs should be agreed in advance of the discharge. Where young people remain in the care of the Authority but move to unregulated or supported accommodation, costs continue to be paid from Children's Services Budgets. However, the financial arrangements for these young people should be consistent with the policy for relevant care leavers as set out below.
Young people living independently in the community or in semi supported accommodation will receive a weekly Personal Allowance set at the Universal Credit rate for single over 18 year olds. Where possible, allowances will be paid into the young person's bank account, but in some cases, particularly where young people are particularly vulnerable or are not fully engaging with services, it may be more appropriate for young people to be given allowances in person. This can ensure a safety net for some young people. In extreme circumstances a member of staff may need to shop with the young person or provide allowances in kind.
Personal Allowances will be paid regardless of any other income the young person receives due to attending college, training or employment. The ability to earn more money will be a real incentive to young people and support the development of a work ethic, economic goal setting and self reliance. Budgeting work with young people will need to forecast any potential drop in income post 18, and prepare young people for this. Young people should be encouraged to save.
In addition to the minimum Personal Allowance, a quarterly clothing allowance will be paid at the rate for 16/17 year old Looked After young people. It may be appropriate to pay this weekly along with Personal Allowances or as a lump sum depending on the needs and maturity of the young person. Some young people may need the spending of this allowance to be supervised.
Where young people are attending college, training or work, support for young people around the financial pressures of maintain their pathway will be considered. This could be in the form of assistance with bus fares or travel costs where reasonable and appropriate. Fares can also be paid to support young people in attending interviews.
Financial support can also be considered to help young people maintain or build links with family in line with the Pathway Plan where reasonable and appropriate.
Those young people who have been discharged from the care of the local authority whilst under 18 years will live in still be entitled to financial support for accommodation and income from the Local Authority. However, where utilities or food are provided, young people will be expected to pay towards these costs from their income. The amount will depend on the type of accommodation. Where young people are placing accommodation in jeopardy by refusing or being unwilling to pay this charge, payment may be made direct by the Local Authority and weekly allowances reduced accordingly.
The primary financial responsibility for care leavers over 18 who are not in employment lies with the Department for Work and Pensions. Care leavers may be eligible for several welfare and means tested benefits via Job Centre Plus but in the main this will be Universal Credit.
The Personal Adviser will support young people to make benefit claims where needed. Benefit level support will be provided to young people waiting for their first benefit payment for a time limited period of up to four weeks. Where benefits have still not been received within this timeframe and there is evidence that there has been advocacy on behalf of the young person where needed, further payments can be paid but with the authorisation of the Leaving Care Team Manager which should be recorded on case records.
Young people not in employment and eligible for benefits will be expected to begin the process of applying for benefits as soon as possible and at least within a week of their 18th birthdays. Where young people fail to do so, financial support will be discretionary and provided via food parcels, etc.
Young people, who default on requirements made by the DWP, lose money or experience budgeting difficulties and who find themselves destitute will be expected to make a Social Fund application. Where this is refused, discretionary support (usually via food parcels) may be agreed by Leaving Care made to ensure that the young persons have food until they receive their next payment.
Young people who find employment will receive an allowance equivalent to benefit rates until first salary payments are received. Fares to work and equipment may also be provided to support the young person in moving from benefits to employment or to prevent a gap in employment.
Young People can claim Universal Credit and Local Housing Allowance whilst in full time Further Education or low-paid employment post 18 years, then they should actively do this to support their income.
Our Local Offer for Care Leavers identifies that Nottinghamshire care leavers have priority access to housing from district councils when they are over 18 years old.
Some young people will continue living within their foster placement post-18 years and this is recognised as Staying Put. However, some young people will be living in other accommodation provision including supported accommodation, semi-independent, housing authority, private rented, university accommodation, district council provision etc.
The Local Authority will review financial requirements to support young people within their accommodation journey and can contribution towards the first months’ rent and deposit where an assessment has identified that this is appropriate, safe, affordable, and sustainable for the young person.
Where there are issues around accommodation provision, homelessness, or risk of homelessness then the young person’s Personal Advisor should seek advice, guidance and sometimes support from the Homelessness Prevention Personal Advisors based within the Countywide Team. There is an ethos agreed under the guidance of the Local Offer for Care Leavers that wherever possible, intentionality decisions around homeless should be avoided.
Essential citizenship identity documents will be funded by the Local Authority. These include birth certificates, passports, driving licences, young person's citizen cards, deed poll to change name.
Young people can be supported with the costs associated with moving house, such as removals, furniture storage, and suitcases and boxes where this is a planned and appropriate move.
Some young people will have no contact with family or poor family/social relationships. Where this is the case, birthday and festivity allowances can be paid at the discretion of the relevant Team Manager up to the value of £25. Any more would need to be agree with the relevant Service Manager.
- Birthday Allowance age 16/17/19/20 per annum £15;
- Birthday Allowance age 18/21 per annum £25;
- Christmas/alternative Religious Festival per annum £10.
- Driving Lessons;
- If a young person wants to have driving lessons, then the Local Authority can support them to apply for their provisional licence (if they have not already had this) and purchasing the theory test books alongside paying for the cost of their theory test when they are ready to take this. This will either come from the Looked After budget for 17yr olds or Unplanned Needs for Leaving Care/21Plus. If an UASC/former UASC is wanting this, then we would use their own individual budget codes;
- the young person has successfully completed their Theory Test then we expect their Social Worker, PA or 21Plus PA to discuss practical options with the young person around owning a car, expenses etc. and see if it is linked with their employment, education, and/or training (EET) plans. We need to be careful that we are supporting young people around driving, but not setting them up to fail if they cannot afford to maintain a car legally;
- If there are links to EET then there should be a discussion with the Achievement Adviser and consideration of assisting driving lesson provision agreed by the Achievement Adviser Co-ordinator;
- However, if the request for driving lessons is linked more with the young person’s emotional health and wellbeing/isolation then you can consider at that point, a referral to the You Know Your Mind fund (by completing a referral form and support plan (with costings)), as well as evidencing the discussions about affordability and maintaining the car legally).
A Home Establishment Grant (HEG) is an allowance of up to £2,000 is available to pay towards the cost of setting up home. This should include, the first year's contents insurance and TV Licence where necessary.
The Home Establishment Grant (HEG) should be spent in stages and ideally the bulk of it will be spent in setting up the young person's first independent, stable accommodation. Young people should be supported by the Personal Adviser to furnish their home and it may be cost effective to apply to charities selling good quality second hand goods and reliable and reputable second hand stores.
The HEG will remain linked to the young person until their 25th birthday. Circumstances may arise where it will be reasonable to pay unspent Home Establishment Grant beyond 21 or when the service ends. Any agreements to do this will be made by the relevant 18+ Leaving Care Team Manager and recorded clearly on file. Cash balances of unspent grant will not be paid to young people.
Where applicable young people should be supported to access other grants available through the Department for Work and Pensions.
Our Achievement Service is available to support care people who are looked after aged 16-17-years-old, or who identify as a Nottinghamshire Care Leaver aged 18-24-years-old. We want young people to be the best they can be and so our aim is to help young people to aspire and achieve in whatever career path they choose to take. Whether that’s through education and studying in college, going to university, doing an apprenticeship, on-the job-training or succeeding in the world of work.
The Achievement Service is committed to helping young people make the most of every opportunity and can offer support, advice, and guidance until their 25th birthday (or beyond if completing a Higher Educational course).
The Achievement Advisers can be part of the young person’s Pathway Plan, Personal Education Plan or complete an Employability Assessment so together we can explore what opportunities are out there and how we can help with the support they might need. We work closely with lots of partner agencies and organisations so together we can improve the opportunities for young people in employment, education, and training and this is seen as an extension of the Local Offer for Care Leavers, called our ‘Achievement Offer’.
The Achievement Service can help to financially support young people in employment, education, and training by assessing the young person’s needs and, where appropriate, ensure that there are not financial barriers in enabling that young person to succeed. This may be support around job interviews (interview clothing), bus fares to and from employment or education provision whilst waiting for longer-term plans to be in place, specialist equipment for education and training pathways, apprenticeship top-up payments etc.
The Achievement Service within Leaving Care will offer financial support for care leavers in education until their 25th birthday or until the end of a programme of education or training if it has been previously detailed in the Pathway Plan.
Costs will be met in full for;
- Registration and Examination fees;
- Textbooks and software that are specified as essential;
- Activities essential to meet course requirements;
- Public transport between home and place of learning;
- Transport to open days and interviews;
- Specific clothing, including clothes for interview and essential equipment relating to the course;
- For young people in residential colleges or universities away from Nottinghamshire, the Leaving Care Team will provide the means for transporting the student and their belongings to and from university at the beginning and end of terms if needed.
A bursary scheme has replaced the Education Maintenance Allowance for students aged 16 to 18 in full time education. Care leavers and students on Income Support will be eligible to apply for the Vulnerable Student Bursary of up to £1200 per annum.
For young people aged 19 years and over colleges have access to discretionary student financial support which is assessed on an individual student basis.
For young people who cannot access benefits, either because they are over 21, they enrolled after their 19th birthday or for some other reason, an assessment will be carried out by the Personal Adviser and subject to the outcome of that assessment, personal allowances may be paid in lieu of benefits. Accommodation may also be provided or the means to secure it (through rent payments) to a maximum of the relevant Local Housing Allowance rates.
A contribution towards annual tuition fees of up to £3,465 per annum will be paid by the Local Authority. This figure is based on former 2012 tuition fee rates. Any additional fees will need to be met by the student via a repayable student loan from Student Finance England.
A bursary of £2000 will be paid by the Local Authority to each student. This can be used by the student for equipment, field trips and other course related costs.
Reasonable local market accommodation costs will be met by the Local Authority including vacation costs. Where a student returns to a previous foster carer or supported lodgings provider, rent will be paid at local housing allowance rate and the young person will be expected to pay for food, utilities from their own income.
Students will be expected to apply for the Non Repayable Maintenance Grant for their daily living needs. Some universities and colleges pay bursaries and offer additional support for young people who have been in care. The individual universities, Frank Buttle trust and the Personal Adviser will be able to provide advice.
Arrangements may be made to assist in an emergency. This could involve a small cash payment, provision of fuel payment cards or a financial support around essential items such as food and fuel payments. This ad-hoc support cannot be relied upon by young people as being a permanent solution and so alternative support will be explored such as food banks, budgeting work and income/expenditure analysis.
Care leavers under the age of 19 and in fill time education will generally be exempt from the majority of NHS charges. For others they may be able to claim assistance via the NHS Low Income Scheme by completing forms HC1 (SC) and HC1 insert links.
Lone parents and sick and disabled young people in receipt of Income Support or Employment and Support Allowance will be exempt from NHS prescription charges, dental charges and sight tests by virtue of their specific benefit claims.
Requests from young people for assistance over and above the basic provided by the above will be considered on a case by case basis EG glasses and dental work not covered by benefits.
Young people under the age of 18 can be referred to the Children and Young People’s Mental Health Services (CYPMHS). For those over 18, CYPMHS may be able to offer consultation to a Personal Advisor but not direct work, Young people requesting direct therapeutic support would need to be referred to Mental Health services through their GP or Leaving Care can explore bespoke support in some cases where required.
Relevant young people who become parents will be eligible for state benefits except for Local Housing Allowance, from the date of the Child's birth. Benefit level allowances will be paid while the claim is being processed. Former Relevant young people will be entitled to claim Universal Credit eleven weeks prior to the due date of the child and for a Maternity Grant if not employed.
16/17-year-old young people who identify as being disabled who meet the criteria may be able to claim Universal Credit and other benefits relating to supporting them to live with their disability.
Where a young person is over 18, and in supported accommodation, the support element of which is not funded by Adult Social care, the young person will be expected to contribute to the support element of their care package from Their benefit support elements.
For those young people aged 16/17 in custody or receiving compulsory hospital treatment, a "pocket money" allowance of up to £15 per week will be agreed with the relevant establishment if this payment is consistent with the rest of the establishment population. Festivities and birthday allowances will continue to be paid and may be saved if appropriate for the young person on release. Clothing allowances for those aged 16/17 and subject to Care Orders will still be issued with agreement between the young person, social worker, and detention accommodation. Transport from custody may be arranged or paid for and immediate needs on release considered.
Also see the PPG re UASC.
All funding for unaccompanied asylum seeking children (UASC) and former UASC care leavers will be supported from the Home Office grant and therefore all UASC should have their individual budget codes. All other financial support looked after young people and care leavers is the same for UASC or former UASC care leavers.
Where, following a Statutory Review, young people who are accommodated under s.20 CA 1989 return home in a planned manner, they will cease to be looked after and be "relevant "children. On returning home the child's parents will be able to claim Child Benefit if the child remains in full time education and training. After six months and following a review decision that the return has been successful, the young person will become a Qualifying child in accordance with the Children (Leaving Care) Act 2000. .
Where the young person is not in education or training, it may be appropriate to provide short term financial support to help sustain the return until the young person engages in a programme of education and training. This financial support will be determined by the Looked After Children Team Manager and will consider the needs of the young person and their family. For example, where the return is unplanned and likely to be very short term, it may be appropriate to pay a Personal Allowance to the young person from which they pay an amount to their parent for food and board.
Any financial assessment will need to consider equity issues in relation to other siblings in the household. It will not be appropriate to provide additional allowances such as clothing allowances, home establishment grant, festivity allowances
Support can be provided for up to six months when a decision will be made regarding on going eligibility for services. If the return home has been successful, then the young person's status will no longer be "relevant "but "qualifying "under the Act. At this point, financial support will cease.
If a return home is unsuccessful, and a young person reverts to eligible or relevant status, they will be treated financially as any other care leaver.
For care leavers who qualify for advice and assistance under S24 of the Children Act 1989, and so therefore Qualifying Care Leavers under the Children (Leaving Care) Act 2000, the primary financial support role remains with the Department for Work and Pensions. However, the Local Authority may give financial assistance which may be in kind or cash to these young people on account of any particular needs they may have over and above these of other young people until they reach age 21 There is no requirement to offer support to Qualifying Care Leavers post 21 years, unless this is part of a Higher Education pathway and agreed by Leaving Care..
The Children and Social Work Act 2017 identifies a requirement to offer support, advice and guidance to those care leavers aged 21 until their 25th birthday. This requirement excludes Qualifying Care Leavers and Appeal Rights Exhausted former UASC care leavers. In Nottinghamshire, we have a dedicated 21Plus Service that will assess the needs of presenting 21Plus care leavers and identify a plan of support which could include access to their Home Establishment Grant (HEG) or other financial support if required as part of the needs assessment or within an employment, education, or training pathway. Please refer to the 21Plus PPG.
Last Updated: June 27, 2023
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