Financial arrangements for young people leaving care

Extracts from Financial Policy for Children Leaving Care 2010
Updated 2011.

These notes apply to young people who are compulsorily supported.

1. The DWP 2010 figure for Income Support or Job Seekers for under (18s) £50.95 per week.
   I am therefore proposing that we pay young people £51.85 as the base rate. This should be reviewed every year to keep in-line with DWP increases. Throughcare workers will assess each young person and decide how much above the base rate each young person will receive. This may include additional payments for laundry and travel
2. The DWP Housing benefit rate for 2010 is £275 as of April 2011; I am proposing that this will be the base rate for our young people to receive from the Social Work. This may increase for young people depending on circumstances. We need to be careful that we do not exceed this amount too much as it could be impossible for the young person to receive any more than this from Housing when they reach 18yrs old
3. I am recommending that all Compulsorily Supported young people receive an annual holiday payment of £90.00 each. This money should be paid towards the cost of a break for the young person. The Throughcare Manager will have the discretion to increase this amount and this could be used to go on holiday alone or with family & friends
4. Each Compulsorily Supported young person should have a yearly clothing grant of £280. This can be paid in a lump sum or in instalments throughout the year. This money should be supervised by staff
5. Emergency payments of clothing money can be made payable to Discretionarily Supported young people if the Throughcare Manager deems this appropriate. This should be in small sums and only in the case of an emergency. Under normal circumstances, DS young people should make efforts to buy clothes from their benefit payments. Under no circumstances should these payments be made to Currently Looked After young people
6. Compulsorily Supported young person should receive a birthday and Christmas payment of £35.00 for birthday and £50.00 for Christmas money. These payments should be to purchase gifts and not used as cash payments.  They will only be payable on the 16th, 17th and 18th birthday the Throughcare Manager will have the discretion to make similar payments to Discretionarily Supported young people in certain circumstances
7. Each Compulsorily Supported young person should receive a travel card irrespective of where the young person is placed. Where possible this should be part of the weekly payments made to young people. The Throughcare team will need to use their discretion if young people claim to have lost their card. They may need to develop criteria for this if required
8. If any Compulsorily Supported young person goes onto further education, the costs of this should be met from Section 30. This  will include accommodation costs and materials such as text books etc; there is a section 30-budget code that can be used for this purpose
9. All Compulsorily Supported young people should have access to an exceptional circumstances grant. The grant of £250 should be available to each young person and money from this grant will be used to help young people throughout the year with miscellaneous items. Young people will not be aware of this grant but if they have not accessed it through the year then the remainder will be paid to the young person at the end of the financial year. This money at year-end can be used to buy the young person items for their flat or used for a break away. Young people should not be given this money as cash; it must be supervised to buy items
10. As stated earlier, our weekly Income Support payment to young people will be £51.85. If a young person is actively seeking employment, training or education then we should consider paying a 20% premium on top of the £51.85. This will be reviewed every 6 weeks until the young person is no longer or a job is secured. This should be used as an incentive to young people. At each review, it will be up to the team leader to decide if the payments are to continue
11. If a Compulsorily Supported young person (who is accommodated in their own tenancy by us) gets employment, we should pay for the first months rent to allow the young person to adjust to the new circumstances. Thereafter, the young person should make payments based on the (Appendix 1) paper. This
    will continue until the young persons 18th birthday. It will be at the Managers discretion to continue making top-up rent payments to the young person beyond their 18th birthday
12. In general terms, any Compulsorily Supported young person who is working should have their wages topped-up if their wage falls below the benefits base rate of £51.85. This will be 10% above the base rate of benefit payments. This can only be paid until the young person is 18yrs old
13. Any young person who refuses to look for work, training or education should have their circumstances reviewed on a regular basis. There should be no arrestment of benefits but a close eye needs to be kept on what the young person is using the benefits money for. If they are involved in the drug abuse then the Manager will need to consider options to freeze payments. This can be stopped once the young person has made contact with the Throughcare team
14. All Compulsorily Supported young people should have access to leisure activities. If a Compulsorily Supported young person shows interest in sports or want to get fit or remain healthy, memberships can be bought for the local club/gym if deemed appropriate. This will be at the discretion of the team Manager.
15. No allowances should be paid to young people who are in custody. If serving a custodial sentence the young people will receive a small allowance or can earn additional monies through the prison system. The same should apply to young people who are held in secure units. Discussion should take place with the senior of the secure unit with regard to this. A birthday and Christmas gift should be provided. On release, clothing and accommodation will need to be considered
16. The provision for providing driving lessons to Compulsorily Supported young people, is laid out in detail in appendix (2)
17. Financial Advisors. Young people who have inherited funds, trust funds or criminal injuries compensation should be encouraged to accept independent financial advice prior to accessing these funds
18. Funerals;-. Young people should be assisted in order to ensure they are suitably attired and are able to get these funds
19. Leaving Care Grant (LCG) See Appendix (4) £1800. All other payments are explained in the “Young People Leaving Care Financial Guidance “document, Including ;-

• • Young people on training schemes
  • Accommodation Groups
  • Arrangements with Landlords/providers
  • Financial Accommodation
  • Damage Deposit/ Rent Guarantee
  • Private Rented Accommodation
  • College / University Accommodation
  • Support in employment
  • Rewards / Incentives
  • Care Leavers Entering University
  • Hobbies & Holidays.