3.16.3 Residence Order Allowances

Background
Criteria
The Assessment Process
The Decision
Financial Assessment
Reviews
Withdrawal of Allowance

1. Background

A local authority may make a contribution to a person in whose favour a Residence Order has been made, except where a Residence Order is made in favour of a parent.

The allowance, if made, is for the maintenance of the relevant child or children and, if agreed, is payable from the date the Residence Order is made.

2. Criteria

Residence Order Allowances may be considered in the following circumstances:

In exceptional circumstances, where an assessment has identified that a child would become Looked After if a Residence Order is not made and a Residence Order Allowance agreed AND a Residence Order is considered to be in the best interests of the child who needs a long-term placements apart from his or her parents; or
Where the child is Looked After and the child’s Care Plan identifies that it is in the child’s best interests for his or her carers to obtain a Residence Order.

In both of the above cases, a Residence Order Allowance can only be paid if:

The carers satisfy the financial assessment for an allowance
The carers hold a Residence Order
The carers have given written notification to the local authority before applying for a Residence Order that they intended to do so and would be applying for a Residence Order Allowance

Carers should apply for a decision on the payment of an Allowance in advance of an application to the Court for a Residence Order.

3. The Assessment Process

3.1 In relation to Looked After Children

Where the Care Plan identifies that it is in the child’s best interests for his or her carers to obtain a Residence Order but the potential carers have not been assessed as substitute carers, an assessment should be undertaken. The assessment will consist of an abbreviated version of BAAF Form F2, Format for Residence Order Allowance application, available in the Adoption and Permanency Team. The social worker should arrange the assessment, using available resources – this could be the Locality Team, Children’s Resource Team or the Adoption and Permanency Team. The Residence Order (Allowance) application should then be provided for the Designated Manager (Residence Orders).

The format of the application should cover the following issues:

A profile of the child and their needs to include specific reference to why a Residence Order and allowance is needed to safeguard and promote the child’s welfare - section 22, Children Act 1989. The Applicant
	Family composition to include household members, other significant family members, age, ethnicity, religion, occupation, relationship to child. Brief Background History – consider following issues as appropriate:- Personality, background, attitude to education Employment, hours of work Relationships, strengths, vulnerabilities Valuing diversity Support networks, extended family dynamics Experience, knowledge of parenting, refer to own childhood if necessary. Parenting capacity in relation to the specific child Understanding of adolescence issues Others in household, attitude to RO application, interests , employment Health issues Particulars of any previous applications or approvals for adoption or fostering any child protections issues.

Accommodation: any safety issues. Disability issues – refer to Form F2 part 3.

Contact Issues: Links with birth family, any difficulties, child protection issues

Contingency Plan: alternative family care if illness etc led to breakdown.

CRB and Social Service Dept checks, referees x 2

Social Work Assessment and recommendation

Disability Issues – THIS IS A SPECIALIST AREA AND BAAF form F2, part 3 should be used for reference as to additional information needed.

Where carers applying for a Residence Order Allowance have previously been approved as foster carers, no further assessment of the carers is required. The original BAAF Form F assessment, together with most recent Foster Carer Review and an up-date report to include the understanding of and commitment to the long term care of the child/children should be provided for the Designated Manager (Residence Orders).

In both cases, the assessment report should include a Contingency Plan for the child in the event that the carer is no longer able to continue caring for the child. This would be particularly important if the carer is elderly or health is uncertain.

In addition the procedures for approving Permanence Plans for Looked After Children must be followed – see Decision to Look After a Child (Care and Permanence Planning Procedure).

Where the Adoption and Permanency Panel has already considered a Permanency Decision for Permanency for the child, a further report should be presented to the Adoption and Permanency Panel. This should include the Child’s Permanence Report or BAAF Form E suitably modified to fit the circumstances of a residence order for the child requesting a recommendation that a Residence Order is in the child’s best interests. The Adoption and Permanency Panel’s recommendation will then be referred to the Agency Decision Maker for approval.

Where the Adoption and Permanency Panel’s endorsement of the Permanence Plan as in the best interests of the child is not required, the conclusion that a Residence Order is the appropriate Permanence Plan for the child is made through the usual planning and review process based on the current and up to date needs assessment of the child and an assessment of the proposed carer and presented to the Designated Manager (Residence Orders) for authorisation.

3.2 In relation to Children who are not Looked After

It will only be in exceptional circumstances that a Residence Order Allowance will be considered appropriate such as where the child’s social worker providing family support work is clear that the child would need to be accommodated if a Residence Order with Allowance were not possible.

In these circumstances, the child’s social worker should provide a report to the Designated Manager (Residence Orders) based on the needs assessment of the child and the suitability of the carer.

4. The Decision

A decision to pay a Residence Order Allowance will be made by the Designated Manager (Residence Orders).

The social worker’s assessment as to whether the criteria for a Residence Order Allowance are met will be presented to the Designated Manager (Residence Orders) for approval in principle that a Residence Order Allowance should be paid, subject to the financial assessment of the carers.

5. Financial Assessment

In all cases, the child’s social worker should ensure that the prospective carer is aware of all the Benefits available to them, i.e. Child Benefit, Family Tax Credit etc.

Once approval in principle has been given, the social worker will refer the case to the Family Placement Unit, Adoption Team Business Support Officer, for a financial assessment of the carers to be carried out by the Finance Department. The Business Support Officer will liaise with the Finance Department.

The administrative staff in the Family Placement Unit will send the carers a financial circumstances form (FPU 136R) for completion, together with the leaflets: ‘What is a Residence Order Allowance?’ and ‘How a Residence Order Allowance may affect Benefits and Tax Allowances’.

The completed FPU 136R, when received, will be sent to the Finance Department, and a copy retained on the file at the Family Placement Unit.

The calculation of Residence Order Allowance is based on the following:

The applicants’ income
An allowance for the applicants’ living allowance is calculated (based on Income Support allowances plus 25% of income, and essential expenditure such as rent or mortgage)
The allowance (b) is subtracted from the available income (a) leaving a sum which is a residual income. The Residence Order Allowance is based on the Basic Adoption Allowance rate LESS child benefit, any tax credits, i.e. child tax credit and working tax credit, and any residual income. Application to the Inland Revenue should be made by the carers for tax credits.

If the carer meets the financial criteria for a Residence Order Allowance and the other criteria identified above then a Residence Order Allowance is paid. If the carer does not meet the financial criteria then no allowance is paid.

The calculation and covering letter FPU 137A should be sent to the carers who have 28 days to query the calculation. The administrative staff at the Family Placement Unit will inform the child’s social worker of the outcome.

A preliminary financial assessment can give an indication whether an Allowance, IF AGREED, would be payable and at what rate. The preliminary assessment could assist carers to determine whether or not they are able to pursue an application for a Residence Order.

Where there is a very significant reason for an exception to be made the Head of Service, Care Resources, should be consulted.

6. Reviews

Residence Order Allowances will be reviewed annually by the Finance Department to establish whether the Allowance should be adjusted or withdrawn. Financial Review Forms will be sent by post with a deadline date for return. If not returned, the allowance may be suspended until the necessary information is received.

Reviews may take place more frequently where there has been a significant change in the child’s circumstances or where the circumstances otherwise require it.

7. Withdrawal of Allowance

The Department reserves the right to withdraw the allowance if

There is sufficient concern about the care of the child and the placement can no longer be supported
Notification is received that the child is no longer living with the holder of the Residence Order
The carers no longer meet the financial criteria for a Residence Order Allowance
An Interim Residence Order does not become a full Residence Order.

End