POLICY FOR THE PAYMENT OF ADOPTION ALLOWANCES Date of Ratification – 2nd October 2015 Next Review date – September 2016 Page 1 of 9 Next Review date: September 2016 1 Introduction 1.1 This Policy, procedures and financial assessment forms used in relation to the financial support available to Adopters, have been updated following a Review and consultation with Adopters. The Review was undertaken to consider changes following similar reviews that already taken place on a regional and national level. 1.2 A significant part of Adoption Support Services for many adopting and adoptive families is the provision of short term or longer term financial support. 1.3 The Adoption Support Regulation 2005 sets out the circumstances in which financial support may be paid to an adoptive family. Financial support is payable for the purpose of supporting the placement of an adoptive child or the continuation of adoption arrangements after an Adoption Order is made. 1.4 The regulations make a distinction between ongoing financial support that is paid on a regular basis and which was agreed before the making of an Adoption Order and other support needs (including financial) which may arise later in the child’s life. This is because the assessment and provision of financial support prior to the making of an Adoption Order will remain the responsibility of the local authority that agreed it for as long as the family in question qualifies for payments. 1.5 This policy refers to financial support that is paid on a regular basis and which is agreed prior to the making of an Adoption Order. 1 Legal Framework 2.1 Payment of ongoing Financial Support for Adopters is not automatic. The conditions for considering whether financial support should be paid or not, are laid out in the Adoption Support Regulations (Local Authorities) (England) Regulations 2005, Regulation 8. 3 Criteria 3.1 The circumstances in which provision of financial support may be paid are as follows: i. Where it is necessary to ensure that adoptive parents can look after a child; ii. Where the child needs special care which requires a greater expenditure of resources by reason of illness, disability, emotional or behavioural difficulties or the continuing consequences of neglect - and the child's condition is serious and long-term; iii. Where it is necessary for the local authority to make any special arrangements to facilitate the placement or the adoption by reason of the age or ethnic origin of the child or the desirability of the child being placed with siblings or a child with whom he/she has previously shared a home; Page 2 of 9 Next Review date: September 2016 iv. Where such support is to meet the recurring costs of travel for visits for the child to members of the birth family/significant others; v. Where the local authority considers it appropriate to contribute towards expenditure on legal costs, including Court fees (in cases where the adoption is supported by the local authority), or expenses associated with the child's introduction to adoptive parents or expenditure on accommodating the child (e.g. adaptations to the home, furniture, clothing or transport). 4 Types of Payments 4.1 Payment to adoptive parents may be made in the following ways: Regular payments - which will be based upon the developmental age of the child and calculated as agreed from time to time by the local authority. This is Means Tested (using the DFE Model) and is paid to prospective adopters / adopters on a Monthly basis; Lump sum payments (settling in costs, special needs and adaptations), which will cover items or adaptations that are required as a consequence of assessment of each child's individual needs. Payment may be in instalments and will end at a time specified by the local authority; Payments in special circumstances (for example, a child with additional needs or where foster carers adopt a child for whom they are already caring or where adopters incur legal expenses in contested cases). Payment may be in instalments and may end at a time specified by the local authority. 5 Foster Carers Applying to Adopt 5.1 Part of the viability discussions with foster carers who have expressed a wish to adopt will be around the financial support that may be available to them (see guidance for Foster Carers Wishing to Adopt). 5.2 Financial support cannot normally include any element of remuneration to the adoptive parent. However, the Adoption Support Regulation 9 (2005) provides that where an adoptive parent was previously the child’s foster carer, and they received an element of remuneration (skills based payment) as the child’s foster carer, they can receive an element of remuneration for up to two years from the date of the Adoption Order. It may be paid for longer in exceptional circumstances at the Local Authority’s discretion. 5.3 The Local Authority MAY pay foster carers who are adopting a child placed with them an allowance equal to the skills based payment and child allowance they were previously receiving, minus Child Benefit deductions. Page 3 of 9 Next Review date: September 2016 This can be paid for a period of no more than 2 years. The threshold criteria for this are: Where it is necessary to ensure that the foster carer parent can look after the child; The child is over 12 months of age, unless there are specific health or disability issues to be considered; The desirability of the child being placed with the same adoptive parent as his brother or sister, or another child with whom he has previously shared a home; The foster carers require this transitory arrangement to help them adjust to the new circumstances. 5.4 The Head of Service has delegated authority to agree to fund up to two years. In exceptional circumstances the child allowance may be extended subject to financial assessment and the skills based payment may also be extended. This will need to be authorised by the Head of Service, as part of the Adoption Support Plan. 5.5 Financial support to Foster Carers must be agreed by the Head of Service, prior to the re- approval and match being placed before the Adoption and Permanence Panel. 5.6 Foster Carers may apply to be assessed for ongoing financial support the same as any other adopter, if they do not meet the threshold criteria or do not qualify for an extension period to their remuneration. 5.7 Foster Carers are not entitled to a settling in grant or introduction costs as the child is already living with them. 6 Assessment 6.1 In relation to proposed financial support for a new placement, the Adoption Support Plan will be submitted to the Adoption Panel with the Adoption Placement Report when a matching recommendation is being considered. See Placement for Adoption Procedure. 6.2 If, following the match and Adoption Support Plan being agreed, regular Financial Support is considered appropriate, the amount to be paid to adoptive parents will be determined by an assessment of their means. This will take account of the adopters' income and resources (excluding their home), reasonable outgoings and commitments, and the financial needs and resources of the child (N.B. Support provided under Section 9.2 (v) to assist with legal costs or expenses associated with the child's introduction to the placement will not be subject to an assessment of means). Page 4 of 9 Next Review date: September 2016 6.3 To increase equality, a cap on eligible maximum mortgage contributions, personal pension scheme contributions and child care costs have now been introduced. The following cap / maximum rates will be applied to the means test:- Mortgage payments: Capped at 33% of net income; Personal Pension contributions: Capped at 10% of net income; Childcare costs: linked to equivalent national childcare tax credits. For 15/16 this was set at £122.50 per week. 6.4 As part of this assessment, prospective adopters / adopters will be asked to complete a Financial Assessment Form (See Appendix 1), which should be returned to the Finance Department. The Finance Department will complete the Financial Assessment (Means Test) within 2 weeks of receipt of the Financial Assessment Form. 6.5 It is important that prospective adopters are helped to access benefits to which they are entitled. As part of the financial assessment process and preparation of the Adoption Support Plan Plan, the child’s social worker should ensure that the family is enabled to apply for all benefits and tax credits to which they are entitled, this may include DLA for children who have emotional and behavioral difficulties as well as illness or disability. Under the Adoption Support Services Regulations 2005, any financial support agreed by the Local Authority cannot duplicate any other payment available to Adopters. 6.6 If at the time of the initial financial assessment, applicants have applied, but are not yet in receipt of benefits, they will be financially re-assessed in a further 3 months. If evidence of Tax Awards is not received within 3 months, payments will be suspended. If applicants are not eligible to receive benefits, they must still provide evidence to confirm this. 6.7 If applicants are eligible to receive Tax Awards, a further financial assessment will be completed after 3 months and the allowance will be adjusted accordingly. If applicants have been overpaid, they will be required to reimburse the Local Authoriity. 7 Decision Making 7.1 Once all the relevant information has been collected and the Financial Assessment (Means Test) has been completed, the information will be sent to the Head of Service, who will make all decisions in relation to the approval of Financial Support for Adopters.