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ITEM EX6

EXECUTIVE – 6 FEBRUARY 2002

CHILDREN AND FAMILIES – CHARGING SCHEME

Report by the Director of Social Services

Introduction

  1. The County Council’s Policy and Budget Plans for 2001/2002 identified a sum of £102,000 to be saved within the Children and Families Budget by the introduction of charges for Children Looked After by the Local Authority. This would be an extension of existing County Council charging schemes and includes residential and foster care (whether provided directly or through another agency), respite care and relief care.

  2. The sum of £102,000 includes two elements: an increase of income, and savings on placement costs, as the charging policy will help to deter new referrals which are not absolutely necessary for the welfare of the child.

  3. The legal basis for these contributions is Schedule 2, Part III of the Children Act 1989. The purpose of the Scheme is not only the generation of income but, in line with the best interests of the child, to impress upon parents the significance of the step involved in taking a child or young person into the Looked After system, the costs of such a step and the importance of their continuing responsibility to the child or young person wherever they may be living.

  4. This report provides information on the charging scheme and the outcome of consultation with a sample group of parents and organisations representing the interests of parents and young people. The Charging Scheme as reported to the Social Services Committee is attached at Annex 1.

    5. Background

  5. The Social Services Committee received a report in October 2001 outlining the proposed Scheme. Officers were requested to consult with parents and with organisations representing parents regarding the proposals and to report back to the Executive on the outcome.

  6. The consultation was carried out in two parts:

        1. With a sample group (10%) of parents whose children are accommodated by Oxfordshire County Council; and

        2. With a number of organisations that have an interest in this area, including organisations representing parents of children looked after.

    Progress

    Parents of Children Looked After by Oxfordshire County Council

  7. At any one time there are approximately 450 Children Looked After who would come within the scope of the Charging Scheme. As for many other local authorities, there are problems where parents may be difficult to locate. A 10% (45) sample of parents were contacted. The response rate was low four written and three telephone responses received. This response rate may reflect the problems that will be experienced in securing income from the charging policy. The policy does emphasise parents’ continuing responsibility for their child, and may deter some requests for children to be accommodated by the local authority.

  8. All of those responding were opposed to the idea of a Charging Scheme. The majority felt that the Scheme was "unfair" because it would reduce their income or because they had inadequate income. All felt that the Scheme would cause financial hardship.

  9. Comments included:

    10. "I would rather care for my children myself than pay for their care"

    "It takes out of our hands the fact of whether we can plan our household budget".

  10. Some of these comments were received from parents who were in receipt of Income Support payments and who would not be expected to contribute as they would be subject to the Waiver Scheme (see Annex 1).

    11. Organisations Representing Children and Parents of Children Looked After

  11. Nine organisations were approached for their views on the Charging Scheme, and four have responded.

  12. The National Youth Advocacy Service felt that the proposals would be difficult to enforce, as there will be particular situations which may not fit easily within the rules of the scheme. They had concerns that the money raised may not cover the costs of administration. The need for sensitivity in dealing with children and parents in difficult circumstances was emphasised. They advised that the Waiver Scheme should be independent of the Charging Scheme and that procedures for dealing with defaulters should be put in place.

  13. The Family Rights Group had concerns in general about the principle of charging for Looked After Children and questioned whether the authority would try to withdraw services if people did not pay. They stated that contributions could not be asked for from parents who are in receipt of Income Support or Family Credit as that would be unlawful. They felt that there needed to be more clarity regarding the assessment of parental contribution, that more should be allowed for essential living needs and that the appeal process was not satisfactory.

  14. The Who Carers Trust (representing young people in the care system) advised that there needed to be an explanation of why a Charging Scheme was to be introduced at this time. They had concerns that such a Policy would increase the hardship and stress experienced by those families needing their children to be looked after. They also asked what provision there would be for families to comment on the quality and cost-effectiveness of the service they are given.

  15. The Children’s Legal Centre felt that more information should be provided, particularly in relation to the Waiver Scheme, the Appeals process and the Financial Assessment. Further clarification is needed on which cases will not attract charges. They also advised that the Benefits system is likely to undergo changes in the near future and that, where possible, this should be taken into account in the scheme.

  16. The detailed views of these organisations can be made available if required.

    17. Conclusion

  17. The objective of the scheme is not to place an extra burden on those families already experiencing financial hardship or family breakdown but to levy charges on those parents who have it within their means to pay a contribution, as well as to underline the continuing responsibility that parents hold when their children enter the Looked After system.

  18. The points raised during the consultation exercise will be considered carefully and taken into account when implementing the scheme.

    19.   Financial Implications

  19. Information provided by other local authorities who have a Charging Scheme indicates approximately 70% of families with children in the Looked After System would be excluded from the Charging Scheme because they are in receipt of Income Support.

  20. Assuming from the current Children Looked After population of approximately 450 children, 120 families paid an average of £15 per week, this could potentially raise income of £93,600. The experience of other local authorities, however is that there are difficulties in successfully collecting this income and this has to be balanced against the administration costs of the Scheme. The net income generated may be modest but other significant benefits would be realised: reinforcing parents responsibility for their children and deterring requests from parents that are not necessary for the welfare of the child.

    21. Staff Implications

  21. Although it is estimated that approximately 30% of families will be assessed to contribute, it will be necessary to reassess the families of all Children Looked After on an annual basis. This will be to monitor for any changes in their circumstances and to record the movements of children.

  22. Existing Charging Systems will be amended to accommodate the Scheme. The report prepared in October 2002 requested an additional Finance Officer post to undertake the work involved in this scheme. A reorganisation of duties and responsibilities within the Finance section means the additional tasks will be absorbed within the existing staff establishment.

    23. RECOMMENDATIONS

  23. The Executive is RECOMMENDED to:

          1. note the outcome of the consultation with parents and organisations representing parents and young people;

          2. agree to implement the Financial Assessment and Charging Scheme as detailed in Annex 1 to the report.

 

MARY ROBERTSON
Director of Social Services

Background Papers: Responses to Consultation

Contact Officers: Phil Hodgson Assistant Director Children and Families, Tel: 012865 815833

Nick Kennedy Finance Manager, Tel: 01865 815992

January 2002

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