Income Support disregard for professional fostering
Officers of the Social Security Department have recently held meetings with the Head of Children’s Social Work and the Manager of Fostering and Adoption Jersey. Funding has been approved to create a specialist fostering service in Jersey by paying some foster parents who have earned accredited care skills – at present the parents receive a “boarding out allowance” to cover costs, but receive no payment for their time. Parents will be paid more as they earn accreditation at the higher levels. This is based on a successful UK model.
In addition, there is an objective to increase the number of children who are formally adopted by family carers, typically grandparents. In many cases these children would then become part of an Income Support household.
The Fostering and Adoption service has indicated it would like to investigate how it can provide a financial incentive to people receiving Income Support to become accredited foster carers, without this being fully regarded as an income. In addition, it would like to ensure there is no financial disincentive for ‘connected persons’ to formally adopt the children.
Limited disregard of fostering income under Income Support
The Minister decided to put in place limited measures to assist the fostering service in potentially recruiting new participants from amongst the families receiving Income Support. Many families will already have a member who is exempt from jobseeking to look after children, and so could potentially find this arrangement worthwhile.
Earnings disregard for paid foster carers
The Minister decided that the first £100 of income from fostering will be disregarded from the Income Support calculation, in addition to the boarding out allowance (which is already disregarded at present).
Any further income above that level will be subject to the standard Income Support earnings disregard (23%) with an additional disregard of the 6% value of Social Security contributions (if they are paid). This would mean that a person receiving a fee of £150 per week would keep £111.50 of that outside the Income Support calculation.
Connected persons
The Minister decided that in these cases the child can be included in the Income Support household once it has been adopted. Any top-up fees will be monitored, but fully disregarded. Procedures will be put in place to monitor to ensure that top-up fees payable in respect of disabled children are offset against any disability award from Income Support, to ensure that foster parents are not overpaid. Top-up fees must be used in lieu of an application for a special payment grant in respect of the child, although special payment loans for large expenses will still be available.
Foster carers as jobseekers
The Minister confirmed that guidance will be issued to inform staff that a foster carer awaiting a new placement is not subject to any jobseeking requirements that would interfere with this.
Financial and manpower consideration
There will be no manpower implications for this change. The financial implication is negligible and will be absorbed into the existing budget of Income Support.