Allowances under a Child Arrangement Order

1. What is a Child Arrangements Order?

A Child Arrangements Order is a court order regulating arrangements relating to any of the following:

• With whom a child is to live, spend time or otherwise have contact, and
• When a child is to live, spend time or otherwise have contact with any person.

If the order states that the child will live with a person who is not his/her parent or guardian, that person will have parental responsibility for the child while the order remains in force.

A child cannot be the subject of a Child Arrangements Order and a Care Order at the same time.

2. The Legal Basis for Paying an Allowance

Under the Children Act 1989, Local Authorities/Trusts have a discretionary power to make payments towards the cost of maintenance and accommodation of a child who lives, or is to live, with a person as the result of a Child Arrangements Order. This power does not apply if the person with whom the child lives is the child's parent, or is the husband, wife or civil partner of the child's parent.

3. Child Arrangements Order as a Permanence Option for a Looked After Child

If a child's parents are unable to care for him/her for an extended period, the most suitable arrangement is usually for the child to live with a relative or another person already known to him/her. It is generally preferable for such arrangements to be made outside the care system – one option to achieve this is through a Child Arrangements Order.

Each review of the care plan for a looked after child should consider all the options for permanence, including possibilities based on an application for a Child Arrangements Order or for Special Guardianship. A review cannot decide to apply for a Child Arrangements Order: the prospective carer must make the application. However, a review may conclude that an application should be encouraged, in which case the social worker will discuss the implications with the prospective carer. If the proposal is that the application should be made by the child's current foster carer, the child's social worker will notify the fostering social worker.

When a child lives with a person under a Child Arrangements Order, the carer has parental responsibility for the child. This includes the duty to support the child, including the cost of the child's accommodation, maintenance and upbringing. The Children's Trust will consider making payments towards these costs in exceptional circumstances

While a child is the subject of a Child Arrangements Order, the carer should have access to all the services that are available to children who live with their parents. If the child is a child in need the Birmingham Children's Trust can provide the same support that it would make available to children who live with their parents. However family and friends carers often find it difficult to discover what resources are available for children living in their area, and extra support may be necessary to ensure that they are able to access appropriate local services.

4. Eligibility Criteria

Birmingham Children's Trust may pay an allowance if a Child Arrangements Order places the child in the care of a person who is not his/her parent, or the husband, wife or civil partner of his/her parent. The purpose of financial support is to facilitate arrangements for the person to care for the child, or to support the continuation of such arrangements, in cases where the Children's Trust consider the arrangements to be beneficial to the child's welfare.

The Children's Trust will not normally pay an allowance unless the following criteria are met:

• The child must have been looked after by Birmingham Children's Trust at some time in the 12 months immediately before the order was made; AND
• The child must be ordinarily resident in Birmingham at the time the order is made, and at the time when any financial support is first agreed, if different; OR
• The Designated Manager (Special Guardianship Support and Child Arrangements Order Allowances) agrees that the circumstances of the individual case justify making an exception.

While a Child Arrangements Order is in force, the carer has parental responsibility for the child. This includes the duty to support the child, including the cost of the child's accommodation, maintenance and upbringing. Birmingham Children's Trust will consider paying an allowance in circumstances in which financial support would be payable to a special guardian, that is:

• The Children's Trust considers that financial support is necessary to ensure that the carer can look after the child; or
• The child needs special care as a result of illness, disability, emotional or behavioural difficulties or the consequences of abuse or neglect, and this requires extra expenditure of resources; or
• The Children's Trust consider that it is reasonable to contribute toward costs of accommodating and maintaining the child which are not available to the carers through the tax and benefit system.

The Children's Trust regards the first of these conditions as meaning that it is likely that the child will suffer harm through lack of financial resources and that payment of an allowance will prevent that harm.

The Children's Trust regards the third of these conditions as meaning that the child's carer is not entitled to financial support through the tax and benefit system that would normally be available to a parent looking after a similar child.

The applicant may live within the city or outside it, but must live in the British Islands (the United Kingdom, the Channel Islands or the Isle of Man), and:

• If the child leaves the British Islands for more than a month, payment of any allowance will be suspended until her/his return;
• If the child is absent from the British Islands for more than 3 months, payments will be terminated. If the child subsequently returns and becomes ordinarily resident in Birmingham, the carer may re-apply for an allowance. 

5. Income Assessment

Before deciding to pay an allowance the Children's Trust will apply an income assessment. This will take into account the financial resources and reasonable commitments of the person named in the court order and the financial needs and resources of the child. It is expected that any person who receives a Child Arrangements Allowance will claim all the state benefits to which they are entitled, and these will be taken into account in calculating the amount of any allowance.

The income assessment applied will be the same as is used in calculating financial support in adoption and special guardianship – the maximum allowance payable will be the amount of maintenance that the Children's Trust would pay to a foster carer looking after the same child.

The Children's Trust will reassess the carer's financial circumstances annually, applying the same income assessment.

6. Payment of Legal Fees to Enable an Application for a Child Arrangements Order or a Special Guardianship Order

Birmingham Children's Trust may consider paying a contribution toward legal fees to facilitate an application for a Child Arrangements Order/Special Guardianship Order if:

• The child concerned is being looked after by the Children's Trust and the application for the order is part of the child's care plan; or
• The application for the order is being made during Care Proceedings and is supported by the Children's Trust; or
• The Children's Trust acknowledges that the application for the order is being made as a direct alternative to Care Proceedings.

The Special Guardianship Regulations 2005 specifically allow that the Local Authority/Trust may contribute toward legal costs [Reg. 6(2)(c)]. Payments of legal costs of an application for a Child Arrangements Order is an application of section 17 of the Children Act 1989 – provision of services to safeguard and promote the welfare of children in need.

Before the Children's Trust will agree to the payment of legal fees there must be a positive assessment of the suitability of the connected person, for example a Schedule 4 report.

The social worker must seek the approval of the Designated Manager (Special Guardianship Support and Child Arrangements Order Allowances), who must be satisfied that -

• Making the order would be in the child's best interests;
• The connected person could not reasonably be expected to pay the legal costs; and
• Making a payment under this scheme would be reasonable and would represent best value for the Children's Trust.

The connected person will choose a solicitor to represent them and will notify the social worker, who will check whether the chosen firm is already on the approved list for the scheme. If not the social worker will notify Legal Services, who will inform the firm of the terms of the scheme and, if appropriate, arrange to put them on the approved list.

The social worker will notify the Designated Manager of the firm and confirm that it is approved under the scheme. The Designated Manager will send the solicitor a standard letter confirming that the Children's Trust will pay the legal costs subject to the conditions of the scheme.

7. Application for an Allowance

The possibility of paying a child arrangements order allowance most frequently arises as part of care planning for a looked after child – either as a way of securing a long term arrangement for a child to live with a family and friends carer or in discussions about whether the child's current foster carer might assume parental responsibility.

Before proceeding with an application, the worker should consider whether the applicant meets the eligibility criteria for this scheme (see Section 4, Eligibility Criteria).

If the child is a looked after child and their current foster carer is considering applying for a Child Arrangements Order, the child's social worker will notify the carer's supervising social worker.

If the applicant wishes to apply for a regular allowance, the social worker will ensure that they understand the limits of the Children's Trust's scheme (see Section 10, Conditions of Payment). Applicants should also be directed to the information about the Children's Trust's Family and Friends Policy on the Trust's website.

The worker will carry out an assessment of the needs of the child and the suitability of the applicant to look after children in general and this child in particular. A Schedule 4 assessment will provide a suitable format for this.

The worker carrying out the assessment will consider:

• Whether living with the applicant under a child arrangements order is the best way to safeguard and promote this child's welfare;
• Whether the applicant has easy access to services available to children living with their parents - This includes knowing about the availability of such services;
• Whether the applicant needs help with "start-up costs" – for example baby equipment; bed, bedding and storage for clothes; safety equipment for stairs, kitchen, bathroom and garden; a car seat etc. – the Children's Trust could fund these under section 17 of the Children Act 1989; and
• If the applicant wishes to apply for a regular allowance, the evidence that the child is likely to suffer harm through lack of financial resources and that the payment of an allowance would prevent that harm.

If the child is currently being looked after by the Children's Trust, the proposal that an application should be made for a Child Arrangements Order must be discussed at a statutory review. The review will consider whether, in the light of the assessment, a Child Arrangements Order seems to be a suitable way to meet the child's needs. The review recommendation will be considered by the team manager in the normal way.

If the child is not currently a looked after child, the social worker and team manager will consider the assessment and make a recommendation as to whether a Child Arrangements Order seems to be a suitable way to meet the child's needs.

8. Approval of an Allowance

The social worker will pass the request to the Designated Manager (Special Guardianship Support and Child Arrangements Order Allowances) with the assessment report and either:

• The recommendations of the statutory review that considered whether a child arrangements order would be in the child's best interests; or
• If the child is not looked after, any comments from the team manager including, for example, comment on whether an application for a child arrangements order would be an alternative to care proceedings.

If the Designated Manager agrees that an allowance is payable, the team manager will notify the financial support officer in the Adoption Service who will write to the applicant, confirming that the Children's Trust agrees to pay an allowance if the court makes a Child Arrangements Order, subject to an income assessment.

When the completed income assessment form is returned the financial support officer will estimate the amount of the allowance payable and notify the applicant.

9. Refusal of an Allowance

If the Designated Manager decides that an allowance should not be paid, s/he will write to the applicant to inform her/him of the decision and the reasons for it.

10. Conditions of Payment

The worker must ensure that the applicant is aware that a child arrangements order allowance is approved for a maximum of two years and that if an allowance is still needed after that time they must reapply for it.

Before the Children's Trust pays a child arrangements order allowance the child's carer must sign the standard agreement. This states that:

• The applicant agrees to notify the Children's Trust if:
  • They change address;
  • A parent or step parent of the child moves to stay with them for more than a week;
  • The order is discharged;
  • The child ceases to live with them;
  • The child ceases full time education or training and commences employment;
  • The child qualifies for income support or jobseekers' allowance in their own right;
  • There is any change in their financial circumstances or in the financial circumstances of the child;
  • The child leaves the United Kingdom for more than a month; or
  • The child dies.
• The applicant agrees to provide the Children's Trust with an annual financial statement.
• The applicant understands that payment of the allowance will cease if:
  • The order is discharged or expires;
  • The child ceases to live in their household;
  • A parent or step parent of the child lives with them;
  • The child ceases to be ordinarily resident in the United Kingdom; or
  • The child dies.

11. Arranging Payment

The Children's Trust cannot apply for a Child Arrangements Order: an application must be made by the person with whom the child will live if the order is made.

No allowance will be paid until the order has been made and the social worker has seen it. When the order has been seen the team manager will notify the financial support officer in the Adoption Service who will arrange for payments to start.

12. Financial Review

All child arrangements order allowances are subject to an annual financial review. A review will also be carried out on receipt of any information that suggests that there has been a significant change in the carer's financial circumstances.

Two months before the financial review is due, the financial support officer in the Adoption Service will write to the child's carer asking for up to date information about their income and commitments. If the child's carer does not provide a statement by the time it is due, the financial support officer will send a reminder setting a new date and stating that if the information is not received by that date payments will be suspended.

On receiving the statement from the child's carers the financial support officer will:

• Check whether their financial circumstances have changed;
• Query any anomalies;
• Recalculate the appropriate level of financial support; and
• Notify the child's carer of the decision.

13. Reassessment

Approval for payment of a child arrangements order allowance is given for a fixed period, up to a maximum of two years. At the end of that period, if the child's carer wishes to continue to receive an allowance they must reapply. The team manager will arrange for a social worker to carry out an assessment.

The social worker will confirm that:

• The child still lives with the carer, and is not being cared for by a parent, or step parent;
• The Child Arrangements Order remains in force; and
• The child still resides in the United Kingdom.

In carrying out the assessment the social worker will consider:

• Whether the child's carer still seems a suitable person to look after children, and to meet the needs of this child in particular;
• Whether living with the carer under a child arrangements order still seems the best way to safeguard and promote this child's welfare;
• Whether the carer needs help with any particular costs relating to the care of the child;
• The evidence that the child is likely to suffer significant harm through lack of financial resources and that the payment of an allowance is necessary to prevent that harm; and
• Whether it is likely that the child's carer will need financial support beyond the child's 16th birthday.

If the child's carer wishes to receive an allowance beyond the child's 16th birthday, this must be mentioned in the assessment. Payment of a child arrangements order allowance normally ceases on the child's 16th birthday. Any proposal to continue payment beyond this date must be fully discussed and agreed at the time of reassessment.

The assessment report and the recommendation of the social worker and team manager will be referred to the Designated Manager (Special Guardianship Support and Child Arrangements Allowances) who will decide whether an allowance should continue to be paid.

The Designated Manager may decide that payments should not be continued if it appears that:

• The child is no longer at risk of significant harm through lack of financial resources; or
• The financial support being provided is not being used to protect the child from risk of significant harm; or
• Other arrangements (for example the child returning to the care of his/her parents) would be a better way to promote the child's welfare.

If the Designated Manager agrees that an allowance should continue to be paid the social worker will notify the financial support officer in the Adoption Service, who will write to the child's carer asking for up to date information about their income and commitments.

On receiving the financial information from the child's carer, the financial support officer will apply the income assessment to determine the amount of the allowance to be paid, notify the child's carer of this figure, and arrange for payments to continue.

14. Carers who Move Out of the City

If the child's carer moves to live in any other part of the United Kingdom, the Children's Trust will continue to pay the allowance.

15. Suspending an Allowance

Payment of a child arrangements order allowance will be suspended in the following circumstances:

• If the child leaves the United Kingdom for more than a month, payments will be suspended until his/her return;
• If the child no longer appears to be living in the carer's household, payments will be suspended while an investigation is carried out into whether payment of the allowance is still appropriate. This does not apply to short holidays (less than a month) spent away from the household;
• If the carers do not submit all the information required for review of their financial circumstances, payment will be suspended until this information is received.

The team manager may suspend payments and arrange a reassessment if at any time it appears that the payments are not being used to meet the child's needs.

16. Terminating an Allowance

Payment of a child arrangements order allowance is agreed for a fixed period, up to a maximum of two years. If the child's carer wishes to receive an allowance for a longer period they must reapply and the need will be reassessed. If no application is received at the end of the agreed period, payments will cease.

Payments will cease if any of the following circumstances apply:

• The child arrangements order expires or is discharged by the court;
• The child no longer lives with the person to whom the payments were being made;
• A parent or special guardian is living in the same premises as the child (but an exception may be made if the parent is also in need of care); or
• The child reaches the age of 16 (but see the next paragraph);
• The child ends full time education or training and starts employment;
• The child qualifies for income support or jobseekers allowance in their own right; or
• The child dies.

The Designated Manager (Special Guardianship Support and Child Arrangements Order Allowances) may agree that regular payments will extend beyond the child's 16th birthday, but this must be agreed in advance, at the time when the need for financial support is being assessed.

The team manager may stop the payments if, following an assessment, it appears that:

• The child is no longer at risk of significant harm through lack of financial resources; or
• The financial support being provided is not being used to protect the child from risk of significant harm; or
• Other arrangements (for example the child returning to the care of his/her parents) would be a better way to promote the child's welfare.