Civic Centre, Castle Street,

Merthyr Tydfil CF47 8AN

Main Tel: 01685 725000 www.merthyr.gov.uk

CABINET REPORT
Date Written January 2017
Report Author Sarah Skuse
Service Area Children’s Services
Committee Division Cabinet
Exempt/Non Exempt Non Exempt
Committee Date 8th February 2017

To: Chair, Ladies and Gentlemen

Allowances for Foster Carers

1.0 SUMMARY OF THE REPORT

1.1 This report provides information in relation to Foster Carer fees. Proposals are
made to bring Merthyr Tydfil County Borough’s financial support to carers in line with
national minimum standards.

2.0 RECOMMENDATIONS that

2.1 The contents of the report be noted.

2.2 Payments be aligned to the Welsh National Minimum Allowances from April 2016.

2.3 Holiday, festival/Christmas, permanency bonus and birthday payments cease from
April 2017. The report outlines the measures that will be applied to any carers who
experience financial detriment as a result.

2.4 Mileage expenses for foster carers be standardised to those set by HMRC from April
2017.

3.0 INTRODUCTION AND BACKGROUND

3.1 Cabinet will be aware that Merthyr Tydfil County Borough Council has a duty to
ensure that approved foster carers are fairly remunerated through the payment of
fostering allowances.
3.2 Foster carer allowances should adhere to the National Minimum Maintenance
Allowance for Foster Carers which were set out by Welsh Government in circular
WGC 008/2013. The circular states that:

“The national maintenance allowance is intended to provide a safeguard for foster

carers. Whilst we expect variation above the minimum to continue and do not
expect any fostering service to lower its allowance in response to the establishment
of the national minimum maintenance allowance.”

3.3 For 2016/17 Merthyr Tydfil are not currently paying the minimum allowance for all
children; this report puts forward a proposal to rectify this. It further proposes
changes to foster carer payments to ensure that the payment of allowances remain
affordable to the Local Authority in coming years whilst also ensuring that foster
carers are not placed in detriment as a result of decisions.

3.4 The Children Looked After Prevention Strategy includes the aim of recruiting more
Merthyr Tydfil foster carers for our young people/children looked after, to do so the
allowances paid to foster carers must be fair and competitive to others within Wales.
We also need to ensure that foster care allowances are commensurate with the
guidance provided by Welsh Government. Further and most importantly we need to
ensure that financial pressures do not place pressure on placement stability or
placement availability for children.

4.0 CURRENT SITUATION

4.1 The Welsh Government have recently announced the NMA for the three years from
April 2017 onwards. The table sets out the recommended minimum maintenance
allowance rated for foster placements in Wales varying according to the age of the
foster child.

Recommended national minimum weekly allowance rated up rated in line with

the Office of Budgetary Responsibility forecasts for growth in earnings
2016/2017
Age of child (years) 0-4 5-15 16+
Maintenance allowance for on-going costs £166 £151 £189
2017/2018
Age of child (years) 0-4 5-15 16+
Maintenance allowance for on-going costs £170 £155 £194
2018/2019
Age of child (years) 0-4 5-15 16+
Maintenance allowance for on-going costs £175 £159 £199
2019/2020
Age of child (years) 0-4 5-15 16+
Maintenance allowance for on-going costs £181 £165 206
4.2 The table below sets out the basic maintenance allowance that are made to MTCBC
foster carers according to the age of the foster child.

Current Payments to MTCBC Foster Carers

Age of child (years) 0-10 11+
Maintenance allowance for on-going costs £159 £189

4.3 In addition to the minimum maintenance allowances, Merthyr Tydfil foster carers
receive 5 weeks of one-off allowances for specific events in the year - the child’s
birthday, religious festival and for a holiday. They will also receive a ‘permanence
payment’ inversely linked to the level of respite care accessed during any year and
in certain circumstances, subject to an assessment of need, payments linked to
exceptional or unforeseen needs.

4.4 Some Merthyr Tydfil Foster Carers also receive enhanced response payments of
£65.00 per week (Band 1) or £160 (Band 2). This is linked to the carer undertaking
specific training, accepting additional responsibilities eg. supporting new carers and
by evidencing advanced skills and commitment in dealing with children that present
higher level needs.

4.5 Foster Carer mileage allowance is paid at 0.40p per mile.

5.0 ALLOWANCES FOR MERTHYR TYDFIL FOSTER CARERS

5.1 It should be noted that Welsh Government use 3 age groups for their allowances
whereas Merthyr Tydfil currently use 2 groups. In order to ensure that we can best
reflect the allowances proposed by Welsh Government it is proposed that this is
managed through the adoption of 4 age groups until rates fully align.

5.2 2016/17 - The table below sets out the proposed weekly allowances for 2016/17.

Recommended MTCBC weekly allowances

2016/2017
Age of child (years) 0-4 5-15 11-15 16+
Maintenance allowance for on-going costs £186 £170 £170 £213
“One off” Allowance payments Up to 5 Up to 5 Up to 5 Up to 5
weeks weeks weeks weeks

5.2.1 Maintain enhanced response payments at £65.00 per week (Band 1) or £160
(Band 2).

5.2.2 Maintain mileage allowance rate at 0.40p per mile.

5.3 2017/18 - The table below sets out the proposed weekly allowances for 2017/18
onwards.

Recommended MTCBC weekly allowances (incorporating 5 weeks additional)

2017/2018
Age of child (years) 0-4 5-15 11-15 16+
Maintenance allowance for on-going costs £170 £155 £155 £194
“One off” Allowance payments Up to 5 Up to 5 Up to 5 Up to 5
weeks weeks weeks weeks

2018/2019
Age of child (years) 0-4 5-15 11-15 16+
Maintenance allowance for on-going costs £175 £159 £159 £199
“One off” Allowance payments Up to 5 Up to 5 Up to 5 Up to 5
weeks weeks weeks weeks

2019/2020
Age of child (years) 0-4 5-15 11-15 16+
Maintenance allowance for on-going costs £181 £165 £165 £206
“One off” Allowance payments Up to 5 Up to 5 Up to 5 Up to 5
weeks weeks weeks weeks

5.3.1 Maintain enhanced response payments at £65.00 per week (Band 1) or £160
(Band 2).

5.3.2 Standardise mileage allowance to HMRC rate at 0.45p per mile. This will
make the chosen mileage rate equitable to that paid to others incurring
mileage costs and place the Local Authority in a stronger position to defend
the rate chosen.

5.4 It is acknowledged that for foster carers providing placement for 5-10 year olds and
11-15 years olds integrating the additional 5 weeks allowances will result in lower
allowance payments which should be compensated for; this will be addressed via
separate “detriment payments” to those foster carers with eligible placements.

5.5 It should be noted that detriment payments are linked to the placement, should that
young person move on and carers accept another placement this subsequent
placement will not be eligible for the detriment payment. The Table below shows the
level of detriment payments up to 2020.
 Detriment Payments for eligible placements

2017/2018
Age of child (years) 0-4 5-15 11-15 16+
£Nil minimum £Nil (increase
£4 per week £30 per week
met in allowance)
2018/2019
Age of child (years) 0-4 5-15 11-15 16+
£Nil minimum £Nil minimum £Nil minimum
£25 per week
met met met
2019/2020
Age of child (years) 0-4 5-15 11-15 16+
£Nil minimum £Nil minimum £Nil minimum
£19 per week
met met met

6.0 NEXT STEPS

6.1 Consultation will take place with foster carers to explain the necessity of these
changes to bring Merthyr Tydfil CBC in line with Welsh Government National
Minimum Allowances. This will be undertaken via letter advising of the full change
that will take place from 1st April 2017. Discussions will then be followed up via
support groups to assist carers to fully understand the changes.

6.2 In respect of 2016/17 should agreement be provided to make the proposed changes
to the age categories and to the allowances within this report foster carers will be
notified immediately and any eligible back payments in respect of 2016/17 will be
paid up prior to the end of the financial year.

7.0 FINANCIAL IMPLICATIONS

7.1 Consultation has taken place with finance and the proposed changes to allowances,
age categories and detriment payments can be met within the budget estimates
within the Medium Term Financial Plan.

8.0 SINGLE INTEGRATED PLAN AND SUSTAINABILITY IMPACT

SUMMARY

8.1 A single integrated plan and sustainability impact assessment has been prepared for
the purpose of this report. No negative impacts have been identified.
9.0 EQUALITY IMPACT ASSESSMENT

9.1 An Equality Impact Assessment (EqIA) form has been prepared for the purpose of
this report. It has been found that a full assessment is not required at this time. The
form can be accessed on the Council’s website/intranet via the ‘Equality Impact
Assessment’ link.

LISA CURTIS JONES COUNCILLOR LINDA MATTHEWS

CHIEF OFFICER (SOCIAL SERVICES) CABINET MEMBER FOR
SOCIAL SERVICES

BACKGROUND PAPERS
Title of Document(s) Document(s) Date Document Location
Looked After children Spring 2015 Unit 5
Prevention Strategy

National Fostering Autumn 2016 Unit 5

Framework
Does the report contain any issue that may impact the Council’s No
Constitution?

Consultation has been undertaken with the Corporate Management Team in respect
of each proposal(s) and recommendation(s) set out in this report.