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This policy is being drafted as a result of several incidents where children placed within foster homes, with IFA carers, have had problems accessing their savings once the placement has ended. The policy, once agreed, should be applied to both IFA arrangements and In house placements.

Given the difficulties that young people leaving care have in terms of financing their independent living (often without any support from birth parents) an accumulation of long term savings which can be made available to them at the age of 18 will help to ease financial constraints and supplement their leaving care grant.

All children placed in foster care should be encouraged to save an element of their weekly pocket money; in addition foster carers should be encouraged to save for the child.  From whichever source it is recommended that a graduated scheme or an agreed percentage (dependent on the child's age) of the carer's allowance per week be saved for any child or young person.  Advice and agreement on the amount to be saved for any particular child should be agreed between the carers and the child's social worker.  It is necessary that all savings are held in the name of the child concerned and in a form that is portable, such that when a child moves placement the savings are able to move with them in an easy format, ie without the raising of cheques and transfer of funds between the local authority and other bodies.  There are some financial organisations that make opening an account in the name of the child difficult (eg a bank will probably ask for a passport or some other rigorous paperwork that may not be available).  As such it is recommended that an Investment account be opened (via the post office) with NS&I (with an initial minimum deposit of £20.00).  This account provides a 'passport' that records deposits and withdrawals, which can be made through any post office.  The account can be opened by an adult in the name of a child of any age up to 7 years.  After 7 years the child becomes the signatory to the account, but the foster carer should hold the 'passport'.  At an older age and dependent upon the specific child, it is possible for the 'passport' to be given into the control of the young person.

In some cases it is not advisable for the young person to know that money is being saved for them, as they will have an expectation that they can have access to the savings at any time they choose.  In these cases and where the child reaches the age of 7 years and it inadvisable for them to have control of their account, L B Bromley is able to open an Investment Account in the name of the child, where the account is held in trust for the child until they reach the age of 18.  Regular sums can be submitted to the Council to deposit on behalf of the child.

The foster carer is required to keep records of the sums that are deposited into a savings account for a child.  At the time of LAC reviews, savings and investments held in the name of the child should be reviewed to ensure that savings are continuing and to discuss any withdrawals from the accounts.  In general withdrawals from the savings account over the sum of £25.00 must be authorised by the child's social worker (or social work manager) in writing in advance of the withdrawal.  This protects all parties against accusations of inappropriate withdrawal or control of the child's money.  A set of guidelines are available in order to inform and advice both children and carers on when and how savings should be used or accessed.

Where foster carers make savings for a child it should be clearly understood that the money, once deposited, becomes the property of the child.  As such the money cannot be withdrawn or withheld by the foster carer as compensation or reimbursement for any damage the child may have caused.  Where it is felt that carers have incurred substantial loss as a result of physical damage to property an appropriate claim should be submitted via the fostering agency or supporting social worker (in-house) to the L B Bromley, which will in turn be considered by the Chair of the Placement Panel or Asst Director.  Where foster carers wish to impose a financial sanction on a child this must be from current pocket money, where the child is informed that a sanction is being imposed and the money is never given or deposited to the child's account.  The child's social worker must also be informed when this arrangement has been made with the child.

A young person's Leaving Care Grant is protected from any means testing against savings that a young person has accrued in their time in care.  At no time is the issue of the Leaving Care Grant or grants for University attendance to be withheld as a result of the value of a young person's existing savings.

Where new born children are subject to a Care Order and are placed in the care of the local authority the authority will claim any government allowances payable for new born children (currently £250) and will be used to open the savings account for that child. As with older children a sum should be saved weekly on behalf of babies and toddlers.

Interest accrued on the savings will be retained by the child and not used in any way to offset the costs of administration of the scheme by the authority or by the foster carer.

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