Leaving Care: Financial Arrangements

The Regulations and Guidance specifically remove Leaving Care Case Workers (LCCW) from holding budget responsibility; however, in a crisis and where it is not possible to consult with an Assistant Team Manager (ATM) or Team Manager, the Leaving Care Case Worker may approve emergency assistance up to a maximum of £30. In these circumstances the LCCW should seek retrospective approval from the appropriate ATM for Leaving Care. In all other circumstances financial support must receive the approval of the appropriate ATM or Team Manager prior to financial support being provided.

ATMs for Leaving Care may authorise expenditure on any 1 service in any 6 month period up to a maximum of £2500. Financial support for a young person that exceeds this limit in a 6 month period must be approved by the Team Manager for Leaving Care. The circumstances which this maximum limit might be exceeded will be relatively rare, for example, rent or accommodation support costs.

All financial support should be requested by completing Appendix 1: Financial Assistance to Young People Leaving Care Form. Following approval, the financial form will be sent to the Finance Section at County Hall for processing. A copy must be put on the Young Person's file and a case note be made on LCS.

All services or goods procured for Care Leavers entitled to financial support from North Yorkshire must be supported by either an invoice or receipt and a copy of this should be attached to the finance form. Confirmation that cash has been provided to an individual Care Leaver must be supported by a signed receipt, and a copy of this receipt attached to the appropriate form in the case file.

In all but exceptional circumstances spend on the Council's Barclay card should be approved in advance of its use. LCCW using a Council's Barclay card should confirm that they have read the procedures relating to the Council's Barclay card. All expenditure must be authorised using the appropriate finance form. Responsibility for reconciling monthly expenditure on the Council's Barclay card rests with the LCCW, with the appropriate ATM for Leaving Care confirming this expenditure.

The regulations supporting the Children (Leaving Care) Act 2000 allow a local authority, when determining the extent of financial support to give to Care Leavers, to take account of capital or income that they may have. However, the regulations state that Criminal Injuries Compensation that the young person may have must be disregarded.

In determining how much a relevant young person should contribute from their income, the intention should be that on reaching 18 years of age (when the duty to maintain and provide suitable accommodation ceases), the young person does not have to make a significant adjustment to their lifestyle as a consequence of a reduction in income.

The Local Authority must provide financial support to 16 and 17 year old care leavers unless their welfare does not require it. Therefore the level of financial support extended to Care Leavers should take into account their individual circumstances and need.

Care leavers in supported lodgings receiving meals and utilities should contribute to their supported lodgings as they will be expected to when they are over 18. This should be the level set by housing benefit for half board.

In more difficult circumstances a responsible corporate parent would not be punitive with a young person but would want to ensure they had all their needs met and may, temporarily, apply sanctions such as loss of incentives and provide food rather than money if the maintenance allowance was being abused. In extreme circumstances allowances may need to be temporarily withdrawn if they were being abused excessively.

Financial support to Care Leavers should normally be paid into the young person's bank account. The Young Person's Pathway Plan should set out what financial support he or she requires and how it is to be delivered. The aim of these arrangements should be to foster an individual's independence. If the young person is not managing their financial support appropriately it is reasonable to deliver this support by different means and if necessary in kind, for example purchasing food.

Where young people live outside of NYCC, arrangements will need to be put in place to help young people manage their allowances and develop financial capability skills. If young people are capable of managing their own funds these may all be channelled through the young person's bank account. If the young person is experiencing difficulties managing their allowances there may need to be negotiations with the leaving care service in the authority where they are living currently so that any financial support might be channelled through this authority.

It is imperative to sound financial planning that young people, foster carers, residential social workers, leaving care social workers/PAs and staff in partner agencies are fully aware of the financial support and entitlements that young people have during the transition to adulthood. The entitlements leaflet will be shared with the young people when they are 16 years old.

Lone parents will be supported to claim income support, maternity allowance or Statutory Maternity Pay dependent on their circumstances. They will also be supported to claim the Sure Start Maternity Grant.

Young people detained in hospital will be supported to claim the benefits that they are entitled to or if they are under 18 will receive the weekly maintenance allowance (if they are relevant). If the young person is not well enough to manage their finances, advice will be taken from the legal department of NYCC.

Young People who are detained in custody will receive a maximum of £10 per week allowance (see Practice Guidance for Personal Advisors working with: Care Leavers in the Criminal Justice System).

Leaving Care and disabled young people. Disabled young people will have the same financial entitlements as other care leavers, dependent on their care leaving status. The Personal Advisor will support the disabled young person to claim to appropriate benefits. If the young person does not have the capacity to look after their finances, support will be gained from the NYCC Legal Department.

Care leavers who were or are Unaccompanied Asylum Seeking Children (UASC). Under 18 year olds will be support as eligible or relevant young people. The financial support offered to over 18 year olds is dependent on their Immigration Status:

1. Refugee / Indefinite Leave to Remain / under humanitarian protection / Discretionary or limited leave to remain / applying for extension / appealing against refusal of extension. Support will given to apply for the appropriate benefits and apply for work;
2. Appeal Rights Exhausted / End of Line cases. Financial support will be given at the NAS recommended rate for 3 months following the Appeal Rights Exhausted decision. Rent will also be paid to the level of the Local Housing Allowance shared room rate for the local area.

Where 16 and 17 year old young people have returned home (to the place where they lived prior to coming into care, their parents, or the person with Parental Responsibility for them) for 6 months, they will become a Young Person Qualifying for Assistance and able to claim welfare benefit, if not in employment. Care Leavers whose status changes from eligible or relevant to qualifying will be supported to claim the relevant benefits. During the initial 6 month period, the leaving care team will pay the weekly maintenance allowance, but 50% will go to the parent/carer.

If the young person is undertaking full time education or training, on returning home the young person's parent/s are able to claim child benefit. After six months, and following a review that these arrangements are successful, the young person will become a qualifying child; and if they are undertaking full time education and training and their parent/s meet the criteria for Child Tax Credits, the parent may be eligible for the Child Element; and if the young person is the only child in the family, the Family Element of Child Tax Credits.

Rent will not be paid where an Eligible or Relevant young person is living with family or friends. The young person needs to agree with their friend or family the level of contribution. The Personal Advisor will support the young person to do this.

Eligible and Relevant Care Leavers. Young People still within the formal care system i.e. a foster or residential placement will not be entitled to financial support from the leaving carer budget.

Eligible young people living independently of the formal care system will receive the same level of financial support as that extended to Relevant Care Leavers. With the exception of a disabled Care Leaver and Care Leavers who are parents with caring responsibility, relevant young people are unable to claim welfare benefits.

Eligible young people who are living independently will have their accommodation costs met by the Looked After Children's Placement budget. Their weekly living costs will be met by the Leaving Care team delivery budget.

Relevant young people will have their accommodation costs met by the Leaving Care Team delivery budget. Their weekly living costs will be met by the Leaving Care team delivery budget.

Where young people have been Accommodated under section 20 of the Children Act 1989 return home, they will cease to be Looked After and 'relevant' young people. On returning home the young person's parent/s are able to claim child benefit as long as the young person is undertaking full time education and training. After 6 months the young person will become a qualifying young person. The family may be eligible for Child Tax Credits. The Leaving Care Team will set out how they will financially support young people in these circumstances, taking into the account the financial circumstances of their parent/s. NYCC will consider equity issues in relation to siblings who may not have been looked after.

Sick and disabled young people and lone parents who meet the criteria set out in Schedule 1B of the Income Support (General) Regulations 1987 are eligible to claim Income Support or Employment and Support Allowance but not Housing Benefit or Local Housing Allowance. Additionally, they can claim these benefits whilst living in foster care. The PA will support the young person to apply for these benefits and no weekly living allowance will be made as their welfare does not require it once they are in receipt of income support.  

The Leaving Care team will support the young person to pay for one passport (whether this is initial passport or renewal). Financial support will be given to buy a piece of photo ID. A copy of the young person's birth certificate will be purchased and kept on the paper file.

Young people who receive a Criminal Injuries Compensation Authority (CICA) payment should be assisted to seek independent financial advice regarding the use of their award and how, for example, by establishing a Discretionary Trust Fund, they may retain entitlement to means tested benefits. Means tested welfare legislation sets out that a CICA payment is disregarded in terms of calculating benefit entitlement for the first 52 weeks after receipt of the award.

The Setting Up Home Allowance is £2000 and can be accessed by eligible (living independently), Relevant and Former Relevant young people. This is ensuring that they have appropriate equipment and household items to set up safe, secure and stable accommodation. Examples of what this could be used for are TV licence, TV, TV stand, aerial / extension, washing machine, fridge/ fridge freezer, Pyrex dishes, chopping boards, laundry basket, tea, coffee & sugar pots, mixing bowl & measuring jug, iron and ironing board, bin, sieve, cooker, kitchen utensils, microwave, kettle, dining table/chairs, toaster, pots and pans, plates, cups, glasses, cutlery, tea towels, washing up bowl, dish drainer, sofa, coffee table, lamp, carpet, mirror, clock, curtains, curtain rails, bed base and mattress, bedside table, bedding, wardrobe, chest of drawers, pillow, quilt, bath towels, shower curtain, bath mat, soap holder, contents insurance, furniture for their child's bedroom.

The setting up home allowance purchases will be supported by the Personal Advisor and is based on need. Eligible or Relevant young people will only be able to access £1000 prior to their 18th birthday.

Emergency Assistance will be provided when the young person has no way of maintaining themselves, up to the maximum amount.

When the maximum amount has been reached within a financial year, the Personal Advisor will support the young person to access support in other ways, i.e. food banks, crisis loans. The PA will also review the Pathway Plan to set out the support necessary to help develop a young person's financial capability skills.

An Eligible (living independently), Relevant or Former Relevant care leaver could receive up to £250 per year for ETE (Education to employment.) This can be used for materials/books directly relating to the course. This can include work clothes for a job or an interview.

Employment, Training and Education incentive.

An Eligible (living independently), Relevant or Former Relevant care leaver aged 16 – 21 could receive up to £10 per week if their income is lower than £80 per week and they have engaged in some form of education, training or employment that week. This can include voluntary work or training courses. This money is not available to those in Higher Education.

An Eligible, Relevant or Former Relevant care leaver aged 16 – 25 can ask for help from the Leaving Care Team with child care costs to enable them to go to some education, training or employment. Their income will be assessed and universal services will be accessed first.

Care Leavers will be advised of their entitlement to 2, 3 and 4 year old free early education.

A Former Relevant Care Leaver accessing further education or training and ineligible for benefits the Leaving Care team will support with rent and living costs for up to 2 years. If the young person is required to pay course costs NYCC will support up to £2000 per year for up to 2 years.

If the young person requires a laptop or specific equipment and materials then this should be recorded as a need in their pathway plan and the Personal Advisor will then be able to request this support. Any specific requests will be considered on an individual basis.

Alongside the financial support from Leaving Care, the 16 – 19 bursary is guaranteed for care leaver aged 16-19, and discretionary learner support can support older students. With the young person's permission NYCC will confirm their care leaver status with the education and training provider.

It should be noted that leaving care allowances are generally paid in advance and means tested benefits and wages are paid in arrears. It is therefore important that NYCC as a responsible corporate parent continue to make transitional payments between the age of 18 and until young people's benefit payments are made or their wage in received.  

An Eligible, Relevant or Former Relevant care leaver could receive up to £250 per year to keep in contact with significant others. This is likely to be given in the form of travel tickets, phone credit or stamps.  

An Eligible, Relevant or Former Relevant care leaver could receive up to £250 per year for clothing. This will be based on need, either to ensure clothing is suitable for the season, maternity clothing or ensuring adequate clothing for education, training or employment.  

An Eligible, Relevant, Former Relevant or qualifying care leaver could receive up to £80 per year for birthday, festivals (i.e. Eid, Christmas) or similar. On their 18th and 21st birthday they could receive up to £100 for each. This is likely to be in the form of a gift, but will be discussed with the Personal Advisor.

An Eligible, Relevant, Former Relevant or Qualifying care leaver could receive up £180 per year if you had no other means to sustain yourself. This will be at the discretion of the Leaving Care Team and will be used as a last resort. It likely that it will be used to buy food or pay for utilities.

An Eligible, Relevant, Former Relevant or Qualifying care leaver could access up to £500 for exceptional circumstances. The team manager of leaving care would need to approve this payment, examples would be to attend a wedding or funeral.

An Eligible, Relevant, Former Relevant or Qualifying care leaver can be supported to secure accommodation by the Leaving Care Team through a bond and first month's rent on one occasion.

Whilst NYCC does not want to encourage young care leavers to become dependent on means tested benefits, the PA will assist young people to maximise their income from benefits, education and training allowances and employment.

The PA will support the young person to access benefit checklist, so they are aware of what they are entitled to.

Links have been made with the local Department for Work and Pensions offices, Job Centre Plus and Benefit Delivery Centre offices and Housing Benefits offices to develop joint approaches to assist young people to maximise their entitlement and ensure the claim process recognises the particular needs of care leavers and provides a smooth process.

Given the complexity of claiming means tested benefits, PAs will actively support young people with their initial benefit claim. This may involve assisting young people with phone calls to register their initial claim, accompanying them to their initial Job Centre Plus appointments, completing forms, providing supporting documents and letters and by the provision of transitional payments. PAs will be aware of how benefit claims can be submitted and that where a young person is 'vulnerable' it should be possible to arrange with Jobcentre Plus for a paper, rather than a telephone, claim to be submitted.

Payments made under sections 23B, 23C, 24A and 24B of the 1989 Act by the responsible authority are disregarded by the Department of Work and Pensions for the purpose of calculating entitlement to means tested benefits such as, Income Support, Employment and Support Allowance, Jobseeker's Allowance, Housing Benefit, Local Housing Allowance and Council Tax Benefit or Child Tax Credits. These payments are also disregarded in assessing the student support entitlement of an eligible higher education student attending a designated course.

For care leavers who do not become Relevant children but who qualify for advice and assistance under section 24(2), the primary financial support role remains with the Department for Work and Pensions. However, NYCC will give some financial assistance to these young people on account of their particular needs over and above those of other young people.

NYCC has a duty to offer advice or befriend a young person qualifying and will also give assistance which may be in kind or, in exceptional circumstances, in cash (sections 24A(4) and (5)). NYCC has the power to provide assistance to these care leavers extends until they reach the age of 21, or 25 where the young person is engaged in education or training. Where a young person has no parent to turn to for help, or where the parent does not have the capacity to provide assistance, it is to be expected that they will turn to their PA for help. Support will be given to YPQs for emergency assistance or exceptional circumstances. Assistance may also be given to these care leavers where this is connected with the young person's employment (section 24B(1), education, or training (section 24B(2). It should be noted that any such financial assistance or grant provided under section 24B(2) where this is connected to a course of education or training may be given up to and including the age of 24 (section 24B(3)). This will be following an assessment and agreed by the appropriate manager.

Section 24B(5) provides that the responsible authority must provide vacation accommodation, or the means to secure it, to any care leaver qualifying for advice and assistance under section 24(1), who is between the ages of 16 and 25, in higher education or in residential further education and who needs it.

The leaving care status of the young person prior to their 21st birthday determines their leaving care status after their 21st birthday. Their financial support would be the same as that of a Former Relevant or YPQ under 21 years old.

Appendix 1: Financial Assistance to Young People Leaving Care Form