Children and Families Bill

Lord Geddes Excerpts

Wednesday 16th October 2013 Grand Committee

According to the experience of the Kinship Care Alliance in advising thousands of families and friend carers every year, this lack of support is due to three major factors. First, they are not entitled to local authority financial or other support for these children—for example, help with contact arrangements, bereavement counselling or challenging behaviour. If a child is looked after by a local authority, the carer must be approved as a foster carer and they are entitled to a fostering allowance. However, 94% of kinship carers are not in that category. If a child is not looked after by a local authority, then financial support is discretionary. Yet carers often face enormous costs—for example, the need to give up a job, to adjust their homes, to buy extra equipment and clothing for the children, as well as possibly some childcare. I have also heard of cases where kinship carers have had to pay enormous sums of money in legal bills to secure the child’s future with them. Although there is a duty on local authorities to establish a special guardianship support service, similar to adoption support, this does not give an individual carer the right to a specific service. Moreover, there is no equivalent support service for children in kinship care under a residence order or no order.

[The Deputy Chairman of Committees (Lord Geddes) (Con)]

My Lords, with apologies to the noble Baroness, a Division has been called in the Chamber. The Grand Committee stands adjourned for 10 minutes, to resume at 5.12 pm.

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[The Deputy Chairman of Committees (Lord Geddes)]

My Lords, it is now 5.12 pm. I apologise again to the noble Baroness for interrupting her mid-flow. The Grand Committee is now resumed.

[Baroness Massey of Darwen]

It was quite a welcome break in this long speech. I am moving Amendment 44 and speaking to Amendment 45. They support financial and other support to family and friends carers. I was summarising briefly the benefits to children of such care and the hardships suffered by family and friends carers. Although there is a duty on local authorities to establish a special guardianship support service, similar to adoption support, this does not give an individual carer the right to a specific service. Moreover, there is no equivalent support service for children in kinship care under a residence order or no order. A survey of family and friends carers shows that those with special guardianship orders are the most satisfied with the legal order compared to those who do not have such orders.

Secondly in the list I started earlier, despite the Government’s 2011 guidance on family and friends care, most local authorities are not proactive in supporting family and friends care. There is no dedicated family and friends care team, for example, in most local authorities. This means that the carers and children are dealt with—here we go again—by different teams in children’s services, who may not have specific expertise.

The third factor is that there are no official statistics published on the number of children in family and friends care either nationally or locally. One analysis by the University of Bristol excludes friends care, for example. Local authorities do not routinely collect such data so it is difficult to see how they can design and finance such services. The 2011 guidance is clear: it requires all English local authorities to have a family and friends care policy stating what support they would provide by September 2011. Sadly, much later after that deadline, more than 30% of local authorities still have not published a family and friends care policy. The guidance does not change the legal position but while local authorities have to provide support for looked-after children placed with family and friends carers, which is 6% of children, they do not have to provide support for the 94% of children in family and friends care who are classified as not looked after.

I am aware that, in the climate of financial restrictions, local authorities are seeking to reduce service provision and that non-statutory services are being cut. My Amendment 44, which mirrors the special guardianship support service required, seeks to redress the shortcoming by requiring local authorities to provide support to meet the identified needs of children being raised by family or friends under a private arrangement or residence order. The circumstances as to when this would apply restrict the support to children who would otherwise be in the care system because they are at risk or their parents are incapacitated, dead or in prison. I hope the Minister will be able to address these concerns and meet with the Kinship Care Alliance to discuss the urgency of this situation.

Amendment 45 seeks to insert a new Section 77A into the Social Security Contributions and Benefits Act 1992. It aims to ensure that family and friends carers receive a basic financial allowance from central government to support them in raising a child who cannot remain with their parents and would otherwise be in the care system. Support would be restricted to cases of children whose parents are incapacitated, dead or in prison. The amendment would provide the mechanism for local authorities to provide discretionary support to meet more effectively the assessed needs of children in family and friends care under residence orders or where there is no order at all. However, this does not address the additional costs to family and friends carers of raising a child who is not their own.

Of course, the legal liability for maintaining children lies with the parents at all times, even if their children are cared for by someone else. At no point does legal liability transfer to family and friends carers, except on adoption, but these carers often have existing financial responsibilities—for example, caring for an elderly relative or their own existing children.

They may apply for child benefit, although there are sometimes problems in transferring this from the parents to the carer. They may apply for tax credits according to their means, and an allowance for the child where they are in receipt of income support. However, there is no recognition in the benefits system of the additional costs of raising a child who is not their own. Caring for a child, according to the Fostering Network, is calculated to be 50% higher than the cost of caring for a birth child. This is partly due to emotional distress in the children, maintaining contact with parents and other family members and engaging with social workers and health and education staff. This is why foster carers receive specific allowances from local authorities, paid at substantially higher rates than state benefits and tax credits.

Briefly, there are four key financial issues for family and friends carers in raising a child outside the looked-after system. First, there is the immediate cost of a child coming to live with a carer, often, as I said earlier, in an unplanned or emergency situation. Secondly, there are the costs of applying for a legal order to provide the child with security and permanence. Thirdly, there is the lost income resulting from the carer reducing their working hours, leaving paid work, forgoing career opportunities or losing pension rights. Finally, there are the actual costs of raising a child, which may include a larger home, higher utility bills and so on.

When special guardianship legislation was passed, it was envisaged that many foster carers would apply for special guardianship orders for older children in their care. There have been cases of successful orders in such situations but many foster carers are reluctant to apply for such orders because they fear that the financial support received would be inadequate, as compared to the mandatory support they and the child would receive as foster carers. It is likely that more foster carers would apply for special guardianship orders if they could be guaranteed continued financial support. The regulations should be amended accordingly. I hope that these two amendments will be favourably received by the Government, so that family and friends carers get a much better deal.

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[Lord McNally]

That is the very interesting nature of this debate—whether removing the term will mean that it is not on the tin, so people will not be sure what they are letting themselves in for, or whether, as the noble and learned Baroness, Lady Butler-Sloss, is suggesting, it being on the tin will deter people from opening the tin. As I said, we have commissioned research on this. We are only at Committee stage. I will make the outcome of that research available. There is no absolute certainty at this stage as to which of us is right about this.

[The Deputy Chairman of Committees]

My Lords, with great respect to the noble Lord, a Division has been called in the Chamber. The Grand Committee stands adjourned until 6.27 pm.