4.13.4 Savings Policy and Procedure for Looked After Children and Young People |
Contents
1. The Policy
The Local Authority has a corporate responsibility to save for Looked After Children and to ensure that the savings are kept safe and can accrue interest during the period that children and young people are looked after.
The policy will include a long term saving arrangement where on behalf of each looked after child the Local Authority will deduct £5 per week at source from the maintenance element of carers’ allowances. This is a flat rate regardless of age.
In addition there will be a saving plan with the child where the carer will be expected to open a saving book in the child’s name and encourage the child to save pocket money on a regular basis.
Once a young person reaches 16 years old, it is expected that the foster carer ensures at least an additional £5 per month is saved which will be put in the savings account that the foster carer has opened on behalf of the young person. This is to further encourage the young person to save for the future. The arrangements for day to day saving must be discussed in each Review and the savings book evidenced and the post 16 arrangement will be reinforced and monitored by the IRO at Reviews.
2. The Procedure
The system of savings deducted from the allowance at source (investing in the child’s future) for the young person/child would begin immediately a child comes into care. Savings would be available to the young person or to them and their parent/carer (if they are under 16) when they leave care.
On leaving care the amounts accumulated for each child will be calculated annually at 31 March with interest at the rate that the Local Authority gains interest on the money.
When children/young people are placed in IFA’s/residential placements, they will be informed of Bexley’s policy for savings by the duty worker making the placement. CPS duty will also inform finance, so they can start the process of savings.
The money will be released by finance via bank transfer 6 weeks after the child/young person leaves care. Placement Service will notify finance and payments when a child leaves care. Also, the allocated Social Worker advises the Child Care Unit administrator who arranges for bank detail form to be completed with the young person (and their parent/carer if under 16). If there is not a current one on the payments file this form will then be hand delivered by the administrator to the Payments Team. Payments Team will then contact Finance for interest (at the rate the local authority gains interest on money) to be calculated. Finance will notify the Social Worker and Payments of the amount, the Social Worker will complete a D87 and pass to payments. As soon as child/young person if out of care for 6 weeks a standard letter will be sent by Payments giving the details of the payment and that the bank transfer is made. A copy of the letter will be forwarded to the administrator in the Child Care Unit to be lodged on the child’s file.
The review that decides on the discharge plan will clarify that these arrangements have been made and or are in process.
In the case of a young person who is over 16 and moving on from a foster placement to semi/independence ideally there would be a CIN meeting or Pathway Review and the first such Review will clarify that the money was returned and how it is being managed.
record of the savings is to be kept by finance and a statement of savings excluding interest is available on the local authority N drive. The Social Worker can arrange to access this and advise the child/young person and carers how much is saved (minus interest which will be calculated when the child leaves care..
It is important that children/young people are made aware of the council’s policy for their savings. This should be explained to them at the Placement Agreement meeting and at Case Reviews taking account of their age and understanding.
Foster carers will still be encouraged by allocated workers and at Reviews to open savings accounts on behalf of children and young people to encourage them to save some of their pocket money and develop money management skills. Any foster carers who wish to supplement these savings will be welcome to do so.
End