WIRRAL COUNCIL

CABINET – 14 NOVEMBER 2007

REPORT OF DIRECTOR OF CHILDREN’S SERVICES

PRUDENTIAL BORROWING FAMILY SUPPORT

EXECUTIVE SUMMARY

This report seeks approval for funding a scheme to modify residential premises owned by carers to support their grandson and allow him to remain in their care.  This is proposed under the previously approved Prudential Borrowing Family Support Capital Fund (Cabinet 3rd August 2005).

1.0	Background

1.1	The Director of the former Social Services Department presented a Capital Investment Strategy report to Cabinet on 3rd August 2005, which was approved.  One of the key elements in this report was an Invest to Save strategy, a principle approved in an earlier Cabinet report on 24th February 2005.

1.2	The creation of the Children and Young People’s Department has resulted in some elements of the approved Invest to Save Strategy transferring to the new department, including the Family Support Capital Fund.

1.3	The establishment of this capital fund of £500,000, under the Prudential Borrowing framework, is linked to the medium term financial plan target of a reduction in the number of looked after children in residential care of 30.  The capital fund is intended to fund major adaptations to residential properties, assistive technologies and “move ups” that will facilitate 10 “difficult to place” young people to be looked after in family settings, rather than being placed in residential care.  Access to the fund is approved under council Standing Orders.

1.4	This report seeks approval for a further scheme to be funded from the Family Support Capital Fund.

1.5	Case R concerns one child who is subject to an Interim Residence Order and in placement with a relative carer at a Wirral address.  The carer receives allowances under this scheme equivalent to a fostering allowance.  The child is aged 2 years.  The current home only has three bedrooms.  The carer currently has three adult sons who share the property.  Two son’s have a room each whilst one son, during the summer time, sleeps in an outdoor summer building but moves into share a room during winter. 

1.6	Child R is currently sleeping in the carers’ bedroom.  The Local Authority have offered to assist financially to enable some of the grown up sons to move into their own accommodation.  However, the carers have given reasons why this is not appropriate at this current point in time. This matter is being heard within the family court and child R is a member of a sibling group subject to the same legal proceedings as Child R. His two older brothers are looked after by the Local Authority and are placed with another grandparent where a Special Guardianship Order is being sought in order for the children to remain in the permanent care of their extended family. It is the view of the Local Authority and the court that the provision of a Special Guardianship Order will provide continued stability and security for all three children.

1.7	The proposal here is to fund a single story extension at a cost of £20,000.  This will enable the child who resides with the carers in their bedroom to move into a room of their own.

1.8	Clearly this investment will make for a sustainable arrangement.  The investment is 	part of a package relating to securing the future of all 3 children concerned.

1.9	The kinship carers intend to apply for a Special Guardianship Order which will ensure that child R does not become subject to a full Care Order and become a Looked After Child. The carers become eligible under this Order to continue to claim child benefit, which is deducted from any allowance the Authority pays.  In addition after two years there will be a further review of the financial support provided.  Special Guardianship provides greater security and stability for the child which is achievable through this investment supporting the package of care.

2.	Financial and Staffing Implications

2.1	The reduced annual cost arising from the three children becoming subject to Special Guardianship Orders would be Child R = £941.20 reduced cost per annum (Child benefit of £18.10 deducted for 52 weeks). Other two children would produce a reduced cost of £1,570.40 per annum (child benefit of £18.10 deducted for 52 weeks for the first child and £12.10 deducted for 52 weeks for the second child). This leads to a reduced cost for all children of £2,511.60 per year.

2.1	The Prudential Borrowing costs are £1,852 pa. The investment will reduce the risk to the Council of the placement breaking down, resulting in the need for higher cost alternatives. 

2.3	Approval of this scheme will leave a balance in the Family Support Capital Fund of £400,190.

2.4	The fund when fully implemented is estimated to produce annual savings of £400,000 per annum as part of the target reduction in residential care.  

3.	Staffing Implications

3.1	There are none arising directly from this report.

4.	Equal Opportunities Implications

4.1	There are none arising directly from this report.

5.	Community Safety Implications

5.1	There are none arising directly from this report.

6.	Local Agenda 21 Statement

6.1	These proposals are intended to be cost effective in terms of maximising existing arrangements.

7.	Planning Implications

7.1	The grant in this case which relates to building adaptations/extensions would be made subject to planning permission being obtained.

8.	Anti Poverty implications

8.1	There are none arising directly from this report.

9.	Social inclusion implications

9.1	There are none arising directly from this report.

10.	Local Member Support implications 

10.1	There are none arising directly from this report.

11.	Background Papers

11.1	Case files held by the Children and Young People’s Department

RECOMMENDATIONS

That

1)	as part of the approved Prudential Borrowing Family Capital Support Fund, a grant of £20,000 be made in respect of the case R outlined at 1.9 above to fund alteration works; and

2) 	this grant be subject to a formal agreement between the council and the relevant parties.

Howard Cooper
Director of Children’s Services