Financial Support for Adopters

Financial support is intended to supplement existing means of support available to adoptive parents and the child or children being adopted. Adopters must be given advice of entitlements to employee's rights to leave and pay, benefits, tax credits and allowances, and these should be taken into account when considering financial support.

From 1^st January 2021 the 4 Local Authority Adoption Services for Barnsley, Doncaster, Rotherham and Sheffield have been a part of One Adoption South Yorkshire, the Regional Adoption Agency and responsibility for some aspects of financial support has transferred from the individual authorities to the RAA (see the One Adoption South Yorkshire document - Initial Support Offer to Adopters).

The circumstances in which provision for financial support may be made is with reference to the Adoption Support Services Regulations 2005 where financial support is necessary either for the purpose of supporting the placement of an adoptive child or the continuation of adoption arrangements after an adoption order is made.

Following the regulations all 4 Local Authorities will consider financial support in the following situations:

For the payment of a regular allowance:

1. Where the child needs special care which requires a greater expenditure of resources by reason of illness or disability, and the child's condition is serious and long-term. This would usually be a child who was likely to be entitled to disability living allowance at the higher rate once they were over 3 years;
2. Where it is necessary to facilitate the placement or support the adoption of a child over 48 months of age or the desirability of the child being placed with siblings or a child with whom they have previously shared a home.
   Groups of 2 or more siblings placed at the same time would normally be considered eligible for an allowance. An allowance would not be paid for the first child but would be paid for each additional child.
   It is not anticipated that siblings placed sequentially would automatically be eligible for an adoption allowance. This will depend on the needs of the children and the impact of placing subsequent children on family finances. Consideration will also need to be given as to whether the circumstances require an allowance for each individual child or just for subsequent children.
   Twins under 48 months with no additional health needs would not normally be considered for an adoption allowance.

For one-off or time-limited payments:

3. Where it is necessary to provide additional support to an adoptive family due to the child’s ethnicity or faith;
4. Where financial support is required to meet the recurring costs of travel for visits for the child to members of the birth family or significant others;
5. The regulations also permit the consideration of one-off payments in the following circumstances: 
   • 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);
   • For the purpose of introducing the child to the adoptive parents – these costs are now covered by the Regional Adoption Agency;
   • Specific Items of furniture and equipment as required by the child. The South Yorkshire Local Authorities will not normally consider requests for additional assistance with forms of transport such as larger vehicles or housing costs for adaptations and alterations.

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 by the local authority. If regular payments are authorised, these will be reviewed annually and means tested in line with DofE Guidelines;
• Lump sum payments, which will cover items or adaptations that are required as a consequence of an assessment of each child's individual needs. Payment may be made in instalments and will end at a time specified by the LA;
• Payments in special circumstances. For example:
  • A child with additional needs (not falling within the category defined in Section 2.2 (I));
  • Where adopters incur legal expenses in contested cases.

Payments may be in instalments and may end at a time specified by the LA.

Any requests for exceptional payments outside these parameters will need to be assessed on an individual basis, will normally be time limited and subject to regular review and agreed by the Adoption Allowances Review Panel or equivalent.

Adoptive families can make a request for an assessment for financial support at any point before the child is eighteen. For the first three years post adoption order such an application would be made to the placing authority. If a request is made when there are no longer children’s social workers involved the application to the Adoption Allowances Review Panel (AARP) or local equivalent for consideration will be made by an allocated Adoption Support Worker to the Local Authority where the child resides. For children placed outside the South Yorkshire area after the first 3 years families would need to follow the processes in their particular locality.

Adoption Allowances agreed before the Adoption Order is made continue to be paid by the placing local authority even after the initial 3 years when responsibility for adoption support passes to the authority in which the child resides.

Where 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 into account the adopters' income and reasonable outgoings and commitments and the financial needs and resources of the child (N.B. Support provided under Section 2.2 (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).

As part of this assessment the adopters will be asked to complete a Financial Assessment Form and provide proof of any items declared to the Payments Team in their respective Local Authority. This will then be reviewed annually. Failure to complete the annual re-assessment will result in payments being stopped and not being reinstated until the date the required information has been provided.  Reinstated payments will not be backdated.

In the case of financial support to be agreed before the Adoption Order is made the Adoption Service Manager, in consultation with the child’s social worker and the adoption family-finder, will recommend the level of financial support appropriate for each child. This would normally be apparent at the time of the SHODBA and can be recommended at this point by the Agency Decision-Maker. For some children it might be appropriate to include the additional support package in their profile. There may also be a need to consider additional financial support at the point where the match is agreed. Again, this would be recommended by the Adoption Service Manager following consultation with the Child’s Social Worker and the family-finding social worker. If financial support is required, then that would need to have been considered and agreed by the Adoption Allowances Review Panel or local equivalent prior to the match being finalised. The decision of the Adoption Allowances Review Panel will be clearly recorded on the child’s file. The financial support plan would then be included in the Adoption Support Plan.

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. This will be for information only as the Adoption Panel can only make recommendations about Adoption Support not decisions.

Adoption Allowances maybe agreed for a time-limited period. At the end of the stipulated period the family circumstances will be reviewed by the Adoption Support Service and a recommendation made to the AARP or equivalent as to whether the allowance is no longer needed or whether it should continue. Where the child no longer resides in the South Yorkshire area and responsibility for adoption support has been transferred to another RAA the relevant RAA should be approached to undertake the review.

In the case of a request for Financial Support post adoption order a report will be prepared by the Adoption Support Social Worker and considered by the Adoption Allowances Review Panel or local equivalent. Again, if a child has been placed for over three years this application would be to the local authority in which the child resides rather than the placing authority.

The adopters will be sent written confirmation of the decision to provide financial support outlining the plan to include either ongoing or an end date if specified for the payments to end. This will include the amount, terms of the support and information about annual reviews. This decision will be sent from the Adoption Allowances Review Panel or equivalent and a copy will be shared with the payments team.  A copy of the decision will also be placed on the child’s case file by the AARP minute taker or equivalent.

Adoption Allowances for previous foster carers will only be considered where the proposed placement is supported by the placing local authority. Where the plan for a currently fostered child is adoption there should be an immediate planning meeting with the Child’s Social Worker, the Adoption Family-finder, the Fostering Support Social Worker and the Foster Carer to consider whether the current placement could become a permanent adoptive family.

The key areas to consider are: 

• Whether the family have been previously assessed as suitable long-term carers
• If not, what is their potential as parents – where do they see their lives when this child is 15, 25, 30 years old?
• What other children are in the family, do they intend to continue to foster – how would this impact on the child as they grow up?
• Adoption allowances to foster carers should only be paid in the same circumstances as they are paid to other adopters. Would the foster carers consider adoption without an ongoing allowance – would that affect whether or not they continue to foster? If they continue to foster is that in the interests of the child?

Where the adopter previously fostered the child they are adopting and they received remuneration in the financial support paid to them as the child’s foster parent, the Local Authority may continue to pay remuneration for a transitional period of 2 years from the date the Agency Decision-Maker agrees to the match. The decision to include remuneration must have been taken before the making of the match and should detail if this will end after 2 years.

Remuneration will include the fostering fee and a non-means-tested allowance for the child. In circumstances where the child would meet the criteria for an adoption allowance as detailed in Section 2.2 (i) and (ii) above a means-tested allowance could continue after the 2 years have ended.

In circumstances where the foster carer would be unable to provide the adoptive placement without remuneration and this is a child where there are no suitable adoptive families available, as an alternative to a child growing up in care, the Local Authority could consider continuing the remuneration element of the adoption allowance and a non-means tested allowance (less Child Benefit) beyond the initial 2 years.

Adoptive families can make a request for an assessment for financial support at any point before the child is eighteen. For the first three years after placement such an application would be made to the placing authority. After 3 years the application should be made to the authority in which the child resides. If a request is made when there are no longer children’s social workers involved the application to the Adoption Allowances Review Panel for consideration will be made by an allocated Adoption Support Worker. In areas outside the South Yorkshire RAA families should follow the local procedures.

Financial support will end in the following circumstances:

• Where the agreed time limited period of financial support outlined in the Adoption Support Plan ceases;
• Payments will cease to be made when the child reaches the age of 18 years unless a young person remains in full time education. If this is the case then an assessment of adoption support need should be completed and a further decision will be made dependant on needs at the time to continue to the end of that school year. Legislation says financial support should continue to the end of the course the child was undertaking at the age of eighteen. For some children with complex needs this may take them beyond the school year in which they are eighteen;
• Where a child ceases full-time education or training and commences employment;
• Where a child qualifies for Universal Credit in their own right (referenced as income support or job seekers allowance in regulations at present);
• Where circumstances have changed significantly, and the criteria are no longer met;
• If a child leaves the adoptive home and this is regarded as a permanent departure. Temporary absences do not apply, e.g., boarding school, hospital, and respite care;
• The child dies.

If it is decided that financial support should be given to adoptive parents, payment may be subject to conditions and a date specified by which the condition is to be met.

Prior to making financial support available to prospective or adoptive parents, they will be required to make an undertaking to inform the adoption service:

1. Of any changes to their home address;
2. If the child (for any reason) no longer lives with them;
3. If there are any changes to their financial situation or to the resources of the child.

Where information is given orally parents must confirm this in writing within 7 days.

Should parents fail to comply with the requirements then the Local Authority will give twenty-eight days, notice before ending the payments. Unless the situation is rectified within those 28 days the payments would cease. Parents would need to re-apply to have the payments re-instated.

If over payments are made due to parents’ failure to share information regarding changes in circumstances these will be recoverable in full.