13.6.4 Residence Order Allowance

This section was added to the manual in June 2010. It outlines the circumstances in which the payment of a residence order allowance be appropriate and the process by which this can be considered.

1. Policy

In promoting permanent stable family placements for children, consideration will be given to the payment of a Residence Order Allowance and support with legal and court costs.

Knowsley Metropolitan Borough Council will only pay Residence Order Allowances in respect of children:

Who immediately prior to the Residence Order being made, were Looked After; or
Where a child is subject to a Residence Order as part of a disposal of Care Proceedings

and

The Council supports the placement of the child with the person(s) taking the Residence Order

It is not anticipated that Residence Order Allowances will be paid to families in private child care proceedings. It may be appropriate to offer other support subject to an assessment of need, using the framework.

The Council seeks to encourage foster carers and extended family members, who care for other peoples children on a permanent basis, to secure the children legally through Residence Orders (if not Adoption or Special Guardianship). This would also serve to take children out of the care system.

The Council seeks to remove barriers that may preclude or act as a disincentive to proceed with obtaining a Residence Order where this is in the best interests of the child.

2. Procedure

Families applying for a Residence Order in respect of a child looked after, with the support of Children’s Social Care, should be given information about Knowsley’s Residence Order Allowance Scheme.

The child’s social worker, in consultation with their Team Manager, must consider whether the criteria for payment of an allowance are met. This will also include a financial assessment of the carers.

As part of the permanence planning for the child (for example this may be the four month Looked After Review), consideration:

Of a Residence Order Allowance should be made, taking into account the needs of the child and whether the carers seek an allowance
Of additional payments to assist with court and legal costs

If a Residence Order Allowance is thought to be appropriate and the criteria are met, the child’s social worker should present the case to the Fostering Panel for a recommendation regarding the payment of a Residence Order Allowance

The Designated Manager (Residence Order Allowances) will decide whether or not an allowance should be payable, based on the recommendation of the Fostering Panel. Prior to this no guarantee of an allowance may be given to the applicant.

The decision of the Designated Manager (Residence Order Allowances) should be conveyed in writing to the applicant(s).

3. Assessing the Level of Allowance

The limits imposed on the level of the allowance payable are as follows:-

The equivalent of basic fostering allowances may be paid
The equivalent of ‘skills payment’ may be payable to existing foster carers who are already in receipt of this allowance
Birthdays, Christmas and holiday allowances paid under the fostering allowances will continue to be paid in the form of four additional weeks of allowances per annum, this amount will be aggregated across all of the payments. This will continue until the Residence Order ceases
One off payment for equipment, furnishings etc. i.e. set up costs will be paid through section 17 monies, if required

The amount of the Residence Order Allowance should not exceed the amount of the fostering allowance payable which may include any skills element already in payment to foster carers.

Carers who have a Residence Order are able to claim Child Benefit. The amount of allowance should be reduced pound for pound by the amount of child benefit.

Carers in receipt of Benefits do need to be advised that their benefit may be reduced if they are in receipt of a Residence Order Allowance.

Tax-paying carers need to be advised that the Residence Order Allowance may be taxable.

It is not possible to provide standard advice because of families’ individual circumstances. Social workers should therefore not give specific advice to families but may direct them to seek advice from Welfare Rights for assistance in this matter or contact the benefits agency or Tax office directly.

4. Rates

For those families granted a Residence Order in respect of a child who meets the criteria a financial assessment will be undertaken and the allowance will be payable at the equivalent fostering allowance rate (excluding any child benefit that the family may be eligible for).

Rates will be adjusted annually in line with fostering allowances.

5. Additional Allowances

At present many foster carers receive a skills payment. This is payable in addition to the normal boarding out rate.

It is unlikely that carers would progress the placement to secure the child legally unless this level of financial support is continued. As such the Residence Order Allowance should be paid at the rate of fostering allowance with the current skill level also being paid.

The skills payment will not be guaranteed, (although the basic fostering allowance would be) but would be reviewed as it would be if the carer were still receiving fostering allowance.

Residence Order Allowances paid at the basic fostering rate will not be reviewed to include an additional payment at a future stage.

6. Management of Allowances

6.1 Residence Order Allowance Agreement

After the decision has been made to pay a Residence Order Allowance the family with the Residence Order must be provided with the following information in writing:

The amount of the allowance
The date of the first payment
The method of payment and frequency (BACS is the preferred option)
The arrangements for review, variation and termination of the allowance
The responsibilities of the family to notify Knowsley Metropolitan Borough Council of changes in their circumstances or those of the child:
- If the child dies
- If the child no longer has a home with them (either of them)
- If the Residence Order is revoked
- If they change address
  
  (The allowance will stop in the case of the first three points)

This information is included in agreement form and should be sent to the family granted the Residence Order following the agreement of the level of the allowance.

The family granted the Residence Order must sign and return one copy of the agreement to confirm their acceptance.

6.2 Commencement of Payment

The payment of a Residence Order Allowance begins from the date of the Court Order.

When a foster carer is granted a Residence Order, fostering allowances payments will immediately cease .Payment of Residence Order Allowances will commence from the date of the Order.

(Foster Carer’s insurance as arranged by KMBC will cease with the change of status).

6.3 Review, Variation and Termination of Allowance

The Residence Order Allowance will be reviewed annually by the Fostering Service

The Directorate for Children, Families and Schools will contact the family in receipt of the Residence Order Allowance in writing within 7 days of the review to confirm that the arrangement is still in existence or to notify them of any variations. .

Allowances subject to variation, that is enhanced allowances (previously paid as a skills payment), will also be assessed by members of the Fostering Service. Carers will be notified in the agreement when the first review is due; reviews thereafter to be conducted on an annual basis.

All families in receipt of allowances payable at the basic rate of fostering allowances will be reviewed by a children’s social worker when the young person reaches 14 years if the child has a disability and otherwise when the child reaches 16 years. The Fostering Service will inform the relevant team when they are undertaking reviews on young people in these circumstances.

If an overpayment has been made for example because it is found that the child is no longer resident, or for any other reason, the local authority may wish to recover the overpayment.

The review form sent to families should state their liability to repay monies if they give false information or fail to notify the local authority of a significant change in circumstance.

The Residence Order Allowance will be varied as the child moves into the next age band, from the date of the child’s birthday as with fostering allowances.

Payment of the Residence Order Allowance will automatically end when:

The child ceases to live with the family with the Residence Order
The Residence Order ceases

Residence Order Allowances will not be reduced for working children (up to 18 yrs old).

Residence Order Allowance Agreement Form

Click here to view Residence Order Allowance Agreement Form.

Knowsley Residence Order Allowance Scheme

Click here to view Knowsley Residence Order Allowance Scheme.

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