April 2013
Children & Young People’s Service
Specialist Services
Children in Care Service
Financial arrangements
Young people 16 to 25 who have left care
Or are treated as care leavers
From 8 April 2013
Introduction
The Children (Leaving Care) Act 2000 and the Transitions into Adulthood guidance made Children’s Services financially responsible for all young people leaving care until their 18th birthday and for some young people who are in education or training up until 25 (section 23 CA of the 89 Children Act) (see appendix 1).
The financial arrangements outlined in this document are intended to be used as a guide. Individual circumstances should always be taken into account when making decisions about a young person’s finances and should also be identified in the young person’s Pathway Plan.
The Children in Care service expects that young people will eventually get a job and be able to support themselves financially. To support this aim financial assistance will continue to be offered after they are 18 to young people from one of the following groups:
· Young people at university or on other higher education courses
· Young people in further education or training
· Young people in post 18 funded supported lodgings providers (ex foster placements)
· Young people with moderate learning difficulties or challenging behaviour where they are not yet ready to live independently
· Unaccompanied young people who haven’t received a decision on their asylum application.
Contents
Young people aged 16 and 17 5
1. Personal allowance payments to 16/17 year olds 5
1.1 No meals provided 5
1.2 All meals provided 6
1.3 Breakfast provided 6
2. Bank Account 7
3. Payments of Allowances 7
4. Young People who are Not in Education, Employment or Training 7
5. Education, Employment and Training 7
6. Utility Bills 8
7. Accommodation Costs 8
8. Rent or Board Contribution 8
9. Young People in Education 8
10. Bursary 8
11. Young People in unpaid Training (not apprenticeships) 8
12. Interview Clothing 9
13. 16 or 17 year old young people in employment or paid training (e.g. apprenticeships) 9
14. Earning less than £56.80 a week 9
15. Earning more than £56.80 a week 9
16. Council Tax 10
17. Young People in Custody 10
18. Young People Placed with their Parents 10
19. Young Parents 10
Young people aged 18+ 11
20. Young People in Further Education or Training over the age of 18 11
21. Adult Learning Grant 12
22. Utility Bills 12
23. Council Tax & Housing Benefit 12
24. Accommodation Costs 12
25. Young people in University 12
26. Disabled Young People 13
27. Young People in Employment 13
28. Young People in Custody 13
Other support for care leavers of any age 13
29. Recognition of Achievements 13
30. Social, Cultural & Leisure Activities 13
31. Alternative Funding 13
32. Leaving Care Grant 14
33. TV Licence 14
34. Clothing 14
35. Christmas Allowance 14
36. Birthday Allowances 14
37. Holidays 14
38. Contact Costs 14
39. Health Needs 15
40. Young Parents 15
41. Maternity Grants 15
42. Child Care Costs 15
43. Emergency Payments 15
44. Young people between the age of 21 and 25. 15
45. Special Guardianship Orders 15
Young people aged 16 and 17
1. Personal allowance payments to 16/17 year olds
The following tables outline what personal allowances should be paid to young people under the age of 18 and not living in foster care or residential care, depending on their circumstances.
1.1 No meals provided
For example: Living independently, YMCA, Stepping Stones, Catch 22, and Marlows’
Not in Education, Employment & Training (NEET) / InEducation or Training / In Employment
Income received direct by young person / Not Applicable (N/A) / Bursary payment or payment in kind from college / Varies
Usual personal Allowance paid by Children in Care Service / £56.80 / £56.80 / £0.00
Rent & Bills Contribution
(See guidance) / Young people pay their own or by arrangement with the accommodation provider / Paid for by us / See guidance
Net personal allowance given to young person / £56.80 / £56.80 / £0.00
Total received in hand by young person / £56.80 / £56.80 plus bursary / See guidance
1.2 All meals provided
For example: Supported Lodgings, Jason Court
NEET / Education or Training / EmploymentIncome received direct by young person / N/A / Bursary payment or payment in kind from college / Varies
Usual personal Allowance paid by Children in Care Service / £56.80 / £56.80 / £0.00
Rent & Bills Contribution / £28.30 / £28.30 / See guidance
Net personal allowance given to young person / £28.50 / £28.50 / £0.00
Total received in hand by young person / £28.50 / £28.50 plus bursary / See guidance
1.3 Breakfast provided
For example: B&B
NEET / Education or Training / EmploymentIncome received direct by young person / N/A / Bursary payment or payment in kind from college / £0.00
Usual personal Allowance paid by Children in Care Service / £56.80 / £56.80 / £0.00
Rent, bills & meals Contribution / £10.30 / £10.30 / See guidance
Net personal allowance given to young person / £46.50 / £46.50 / £0.00
Total received in hand by young person / £46.50 / £46.00 plus bursary / See guidance
2. Bank Account
Young people should be encouraged to open their own bank account and develop the skills to manage their own finances. Children in Care workers shall advise young people on how to manage their account. Financial assistance should be channeled through a young person’s bank account wherever possible.
3. Payments of Allowances
In most cases payments will be made directly into a young person’s bank account; however consideration will be given to individual circumstances on how and where allowances are received.
4. Young People who are Not in Education, Employment or Training (NEET)
Payments to young people are in line with nationally agreed levels set by the Department of Work & Pensions (DWP).
Young people not engaged in education, training, or employment, are not entitled to any additional financial assistance once they have reached 18.
Young people in this situation will be helped to claim all the appropriate benefits; this process must start on or as soon as practicable near their 18th birthday. Once evidence is provided that they have successfully made a claim, and whilst they are waiting to have their benefits processed, the young person will be provided with financial support for a maximum of 4 weeks from the date of their 18th birthday at the weekly Income Support rate as set by DWP (2013 £56.80 per week).
The Children in Care Service will continue to act as good parents, and requests for emergency payments will continue to be considered on an individual basis. The Children in Care team manager will decide whether a direct payment is made or a food parcel is given.
Unaccompanied young people over 18 who haven’t received a decision on their asylum application from the Home Office will receive financial support from the Children in Care Service until they have been given a decision. These young people will have to be referred to NASS so that we can get our money back. When young people in this situation receive a decision they will then be entitled to access welfare benefits and therefore financial support from the Children in Care Service will cease.
5. Education, Employment and Training
16 or 17 year old young people in education or training will receive a personal allowance. In addition, they may be entitled to the following:
· travel allowance
· utility bills paid
· financial assistance toward clothing or equipment or other associated costs of their course
6. Utility Bills
As part of the process of preparing young people for independence young people shall receive advice and guidance from their Children in Care workers on how to manage their bills effectively and use their utilities efficiently. Although utility bills will be paid for 16 or 17 year old young people engaged in education or training, young people may be asked to contribute toward a bill if the bill is deemed to be excessively high.
7. Accommodation Costs
At 16 and 17 years old we would encourage young people to engage with supported lodgings or supported housing. Should private rent or social housing be assessed as appropriate then rent for 16 and 17 year olds in a single person’s private or council tenancy will be paid up to a maximum of £425.00 per month, reflecting the current housing market average rental level for a one bedroom flat in Leicester. If a young person is sharing the accommodation a maximum of £285.00 per month toward their share of the rent will be paid. If a young person is living outside of Leicestershire the market rate for that area will be assessed and the level of rent payment agreed accordingly. Post 18 this will be discussed and supported with the Children in Care worker dependant on the circumstances of the young person and the availability of benefits, for example housing benefit, to the young person.
8. Rent or Board Contribution
Rent or board contributions for other forms of accommodation are deducted at source from a young person’s full allowance.
9. Young People in Education
The Children in Care Service will provide financial support to help a young person aged 16 or 17 to attend college, including a personal allowance, as stated above. The Children in Care worker will check a young person’s attendance on a regular basis. The Children in Care worker and the Connexions worker will also help the young person to apply and access grants from the college (or other sources such as the Princes Trust) to obtain equipment or clothing to support their learning.
10. Bursary
Those most in need, such as those in care, care leavers or those claiming Income Support are guaranteed a bursary of £1,200 a year. The responsibility for administering and paying the bursary lies with the colleges. The colleges may give cash or payment in kind such as stationery or lunch vouchers.
Young people who are not entitled to the bursary due to their immigration status will receive similar financial incentives to attend education or training up until they are 18. The expectations for these young people remain the same in terms of attendance and progress - this will be monitored by the Children in Care worker.
11. Young People in unpaid Training (not apprenticeships)
16 or 17 year old young people on training courses will get the same financial support from the Children in Care Service as someone in education in relation to personal allowance, bills, clothing and equipment. If a young person receives assistance towards travel expenses from their training provider they will not be entitled to this from the Children in Care Service. The Children in Care worker will check a young person’s attendance on a regular to basis
12. Interview Clothing
Young people can be supported to get interview clothing.
13. 16 or 17 year old young people in employment or paid training (e.g. apprenticeships)
In most cases, young people in full time employment will not be entitled to a personal allowance. There is an expectation that young people provide evidence of their income to allow a financial assessment by the Children in Care worker to be undertaken.
If a young person is in low paid full time employment or part time employment any additional financial assistance provided will be dependent on a financial assessment being undertaken.
14. Earning less than £56.80 a week
Any young person whose net income is below the current Jobseekers Allowance (JSA) applicable amount i.e. £56.80 should not be asked to make a contribution towards their rent. Their personal allowance will top up their earnings to £56.80; in other words the amount of PA payable will be £56.80 minus their earnings.
If the young person concerned is one of a couple or has dependants, is disabled, or acts as a carer of a disabled person the Children in Care worker will consult a Welfare Rights Officer who will be able to calculate a figure based on the specific circumstances.
15. Earning more than £56.80 a week
If the young person’s earnings are above £56.80 we will not pay a personal allowance and we will ask them to make a contribution towards their rent. The amount that the young person contributes will depend on how much they earn.
To work out the young person’s contribution towards their rent:
· Take the amount that they earn
· Deduct £5
· Deduct £56.80
· Divide in half.
The figure that you are left with is the young person’s contribution.
Example
Net earnings £100 a week
Rent £55 a week
Deduct £61.80 from the total earnings = £38.20 (£61.80 is £56.80 plus £5)
Divide by 2 =£19.10
We deduct £19.10 off the amount of rent we will pay. The rent is £55 so we pay £35.90 and the young person pays £19.10. The young person is £24.10 a week better off than if they didn’t work.
16. Council Tax
16/17 year olds are not liable for council tax and should not be charged.
17. Young People in Custody
Young people in custody will receive no personal allowance. Whilst in custody they will receive £10 per month in the form of a postal order. Young people in custody are encouraged to engage in education and training offered by the prison to earn extra money. Up to one year’s worth of Christmas and birthday allowances will be given upon a young person’s release from custody. Requests for additional financial assistance for personal needs including clothing will be based on assessed need.
18. Young People Placed with their Parents
If a young person is the subject of 'Placement with Parent Regulations' and therefore at home and the parent(s) or carer(s) are working then no further payments will be made to the young person. If the parent(s) or carer(s) are in receipt of benefits then the Children in Care Service may agree to pay £20 to the young person as an allowance. Any additional payments should be discussed with the Children in Care worker involved.