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Financial Arrangements for Cared For Children and Care Experienced (Aged 16 To 21/25)

Amendment

This chapter was refreshed in August 2025.

August 12, 2025

The values which underpin this policy and procedure reflect those in the Children Act 1989 and the Children (Leaving Care) Act 2000 including vol. 3 The Planning Transition to Adulthood for Care Leavers regs 2010 (revised 2015 and 2022), the Children and Young People Act 2008, Local Authorities Responsibilities towards former looked after Children in Custody regs 2010 Care Leavers (England) Regulations 2010 and the Government’s Care Leavers Strategy 2013/2016.

The guidance and duties are clear and include delaying becoming care experienced (leaving care) as long as possible and ensuring that young people are prepared as far as possible for their journey on in to independence. There is much research [1] to show that care experienced young people, taken as a group are more likely to be socially excluded, have higher rates of unemployment, homelessness etc when compared to their peers so it is not surprising the regulations and guidance are clear that the Local Authority, through its Corporate Parenting duty to support care experienced young people in to employment, education or training and suitable accommodation. Importantly we must also, provide 'second chances'. Using our understanding of adolescent development, we must allow for young people to sometimes make unwise decisions but support them to make a better choices second, third or fourth time around. After all, most of us didn't get it right first time and we need to [2] '….recognise that the process of successful learning may involve learning from mistakes'.

[1] Young people leaving care published in July 2006 in the journal Child and Family Social Work. Stein, M. (2006.
[2] Page 59 Vol 3 Planning Transition to Adulthood for Care Leavers

The purpose of the policy is to ensure Cumberland provides appropriate financial support to ensure Cumberland care experienced young people, as defined by the Children (Leaving Care) Act 2000 (as it amends the Children Act 1989). This therefore includes all young people who are 'Eligible' (Section 19B) 'Relevant' (Section 23A), 'Former Relevant' (Section 23C), 'Qualifying' young people who have been cared for by local authorities” (Section 24) and 'Former Cared For' (as defined by the Children and Young Persons Act 2008 as it amends the Children Act 1989 (Section 23ZA).

Any financial agreements can only be made and incorporated as part of a Pathway Plan with the knowledge and approval of Team Managers, service mangers, senior managers and assistant directors (in accord with delegated financial authority requirements); once Pathway Plans are approved they become legally binding documents.

Appendix 1: Transition to Adulthood Financial Policy and Guidance 2025 - 2026 is a general guide, it is acknowledged it will not cover every eventuality and there will be cases which will fall outside the scope of this policy document which are covered by the exceptional payments section.

Young people who have not accessed any of their setting up home allowance prior to 1st April 2023 will be eligible to claim up to £3499.50. Those who have already accessed their setting up home allowance prior to 1st April 2023 can claim up to £2000.00.

  • When talking to young people, social workers and Personal Advisers should frame their discussions using (Appendix 1: Transition to Adulthood Financial Policy and Guidance 2025 - 2026) as a guideline;
  • When carrying out the Pathway Plan assessment, part 1 and formulating the Pathway Part 2, the Social Worker must do so using Appendix 1: Transition to Adulthood Financial Policy and Guidance 2025 - 2026 as a guide;
  • The allocated worker must discuss the young persons proposed plan, being clear about the financial implications, in supervision and authorisation must be given by the Team Manager (or service manager/senior manager in accord with the scheme of financial delegated authority) before young people are given any assurances about finance or financial support or any service which has financial implications;
  • The Personal Adviser should also bring the proposed plan with clarity around the financial entitlements to their supervision so that if there are any areas which the Social Worker and Personal Advisor do not agree on they can be highlighted and discussed further;
  • If financial issues are not resolved to everyone's satisfactions, the Personal Advisor should discuss the position with the young person and advise them of their right to discuss the issue(s) with NYAS or alternative advocacy support.
  • When talking to young people, Personal Adviser should frame their discussions using Appendix 1: Transition to Adulthood Financial Policy and Guidance 2025 - 2026 as a guideline;
  • All financial support for 'Qualifying' young people is discretionary (and subject to an assessment of need) *N.B. discretionary payments should not exceed in part or in total, what could be paid to eligible, relevant or former relevant young people in similar circumstances;
  • Any request for financial support should be based on an assessment of need in each individual case;
  • The assessment should be discussed with the Team Manager and make recommendations regarding any funding requirements;
  • The Team Manager will make a decision regarding the request; If financial issues are not resolved to everyone's satisfaction, the Personal Adviser should discuss the position with the young person and advise them of their right to discuss the issue(s) with NYAS or alternative advocacy support;
  • The number of weeks prior to being in custody will determine these young people's entitlement to a full care experienced service and they should be supported accordingly.

Initially it is likely that most purchases funded through a young person's setting up home allowance will be supported by a trusted adult, e.g. foster parent, staying put carer, residential support worker, Personal Adviser or Social Worker but this will determined during their assessment of needs. As the young person becomes increasingly independent there may be times when a Personal Adviser feels it is appropriate to provide young people with specific sums for specific purposes; this would be negotiated with the Team Manager and if this was not successful i.e. no item or receipt not provided, then further spends would need to be reassessed and potentially supervised.

All purchases must be properly evidenced with legitimate invoice and or receipt, if this is not provided the purchase cannot be funded or refunded.

Any purchase a young person intends to make and using their setting up home allowance must be fully discussed and agreed with the Personal Adviser who will seek approval from the Team Manager before any funds are committed. If money is spent without prior approval, it will be at the Service Manager's discretion whether or not it is reimbursed.

Young people who have a confirmed University place are able to access financial support towards a computer and associated software, up to the value of £800.00 (£960.00 where purchased by the local authority and VAT rated at 20%), if not previously accessed.

It is acknowledged that some young people will need access to a high specification computer for specific education, if a specialist computer is required above the £800.00/£960.00 level it is expected that funding above the standard level should then be drawn on, including the 'Pupil Premium' or via birthday or Xmas gifts while young people are in foster, residential care or semi-independence or via university/college and student finance allowances. Where there are extenuating circumstances and a strong case can be made as to why these alternatives have not been used to fund a computer, then a case for discretion can be made to the Team Manager and Service Manager for consideration.

Last Updated: August 18, 2025

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