The Local Government and Social Care Ombudsman said Southend-on-Sea Borough Council's actions affected the allowance paid to the complainant, as well as other family foster carers, during the first two years since they were granted a Special Guardianship Order.
The report reveals that the complainant and his wife took responsibility for their two grandchildren after they were taken into care by the council.
Initially, the council paid the grandparents a family foster carer allowance. However, after a Special Guardianship Order (SGO) was made, the council paid them in accordance with its practice at that time, which was to reduce the allowance over a two-year transitional period.
Statutory guidance states that, in determining the amount of ongoing financial support for special guardians, a council should “have regard to” the amount of fostering allowance that would have been payable if the child were fostered, with any means testing using this maximum payment as a basis for calculation. Where special guardians were previously foster carers, councils can pay them the fostering amount for a two-year transitional period to give them time to adjust.
The regulations state that: “The purpose of the two-year transitional provision is to enable local authorities to maintain payments to foster carers who become special guardians, at the same rate as they received when they were fostering the child. This should give the family time to adjust to their new circumstances."
In theory, this can give time for special guardians to apply for benefits during the period, which they would not have been entitled to as foster carers.
The ombudsman found that at the time of the complaint Southend Council had a practice of paying special guardians who had previously been family foster carers, special guardianship allowance at 75 per cent of the core fostering allowance for the first year and then 50 per cent during the second year.
The report states that, following legal advice, the ombudsman was satisfied that the council's practice of reducing the allowance over a two-year period was not in keeping with legislative requirements. The council told the ombudsman that it genuinely thought that this was in keeping with the legislation and guidance.
"Understandably, in these difficult times, the council says that it will require six months to review and amend its SG practice and issue a policy," the report states.
"The council estimates that there are 37 families and 46 children who would have been adversely affected by the faults which I have identified."
The ombudsman also found fault in the way the council withdrew the financial support for legal assistance to the complainant.
Southend Council has accepted the recommended actions to remedy this complaint. The grandparents will receive £6,948.31 in backdated special guardian allowance payments and will also make a payment of £400 in recognition of the avoidable distress and uncertainty caused by the late withdrawal of legal assistance.
Councillor Anne Jones, Southend's cabinet member for children and learning, says: “We have acknowledged and accepted the findings of the Ombudsman. We are currently reviewing our policy and practice to bring it in line with statutory requirements, along with reviewing our SGO caseload to ensure back dated payments are made to the affected families.
“We apologise to the complainant for any distress this may have caused them, and any other impacted families.
“The Local Government and Social Care Ombudsman is satisfied with our response and have closed the case.”
