The recommendation to backdate allowances for grandparents, who are granted special guardianship orders (SGOs) to look after their grandchildren, was made in a critical report by the ombudsman in May this year.
The council challenged the ombudsman’s findings in the High Court.
The challenge failed this week, with the High Court agreeing with the ombudsman that the local authority needed to look again at its policy of paying special guardians.
The case involved grandparents who had been granted an SGO to look after their grandchild and have day-to-day responsibility for their care.
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