Future of foster care: consultation analysis – updated final report

7. Retention – Financial Support

This chapter presents the analysis of further questions about the retention of foster carers, with a focus on financial support. The consultation paper explains that foster carers, while remunerated, are self-employed for tax purposes. Foster carers' remuneration includes:

• A weekly fostering allowance to cover the cost of caring for a child
• Fees reflecting the expertise and nature of tasks undertaken by foster carers
• Additional payments to cover one-off expenses.
• Retainer fees for a time-limited period may or may not be paid to foster carers to allow them to be available to receive a child into their home.
• Continuing Care allowances, in which some fostering services will continue to pay an allowance and fee to a foster carer where a young person remains in that placement after their 18^th birthday.

Q19. How effective is the current financial model for foster carers?

Of those answering Q19 (74% of all respondents), almost half (47%) felt the current financial model for foster carers was not effective, compared to 14% who felt it was effective and 28% who felt it was somewhat effective. Individuals were more likely than organisations to view the model as not effective, at 52% compared to 38% of organisations. However, seven of the ten local authorities who answered Q19 felt the current model was effective to some extent.

Just under two thirds of respondents left an open comment at Q19. The most common themes in order of prevalence were to improve terms and conditions for foster carers, to standardise payments and to build in an annual increment.

Improved terms and conditions for foster carers

Many respondents at Q19 called for improved terms and conditions, including foster carers becoming salaried and enhancing remuneration. The need to enhance remuneration packages for foster carers was repeatedly raised across multiple questions, particularly at Q2, Q11 and Q12, with comments made at those questions included in the analysis below.

Comments across these questions highlighted a preference for foster carers to hold a salaried position with associated employment rights, instead of being self-employed as currently. This specific issue was also raised at Q26 and advocated by attendees at an engagement event. Foster carers having employment rights was viewed as providing multiple benefits such as enhancing the financial and employment security of carers, resulting in them being more valued, and having a positive impact on children as a result of the increased financial stability of their carers. Rights respondents expected would be included in a salaried position included paid leave, sick pay, pension contributions, being paid to attend meetings and improved access to trade union representation.

Across questions, issues raised included calls for increased rates of fees and allowances. Views expressed were that current fees for carers are insufficient and do not adequately recognise their skill and experience or the demands of the role. This was also raised across engagement events. For instance, participants at one event noted that while they felt they were some of the better-paid carers, they still felt the rate was insufficient, and they had to regularly use their own savings to make ends meet. According to these respondents, retention and recruitment could be improved if these changes were made.

“The biggest hurdle is always going to be the low rate of payment under the Scottish Recommended Allowance. This is a 24/7 role with sometimes challenging children due to their previous circumstances. Raising children who have gone and are going through very traumatic times is even harder and to receive less than minimum wage for doing the 'job' makes it difficult to attract good potential candidates.” - East Ayrshire Council

Standardisation of payments

Several respondents called for standardised payments across Scotland and payment types, with some commenting generally or specifically on allowances and fees. Standardisation was suggested to increase transparency, equity, and consistency between carers. It was also suggested that it could reduce competition between local authorities and IFAs, as there are currently differences in payment, and aid in the recruitment and retention of carers in some areas.

Increases in payments – annual increments, retainer fees and additional payments

A need for a higher allowance to reflect expenditure was suggested by some respondents. This was suggested to support recruitment and retention of foster carers, prevent foster carers from being out of pocket and facing financial challenges, reflect increased costs as children age, and meet the different needs of different children. It was noted that current allowance payments are currently insufficient to meet costs of care.

Some respondents suggested building in an annual increment to allowances and fees, to reflect inflation, the increased cost of living and greater costs as children grow up. A lack of increases over the years, meaning payments have not kept pace with inflation, was noted.

The desire for retainer fee payments was noted by some respondents and attendees at an engagement event, including the need for standardisation. Respondents highlighted challenges in not having retainer fees, namely putting foster carers under financial stress when they do not have a placement. This is detailed further under Q22. Some respondents also requested additional one-off payments for the individual needs of children or the standardisation of payments for birthdays, Christmas and holidays.

Other themes

Some respondents made general comments that the current financial model for foster carers is ineffective and does not adequately reflect the complexities of the role, and requested a review and improvements. A small number commented that money is not a motivator for foster carers or that the allowance for children should be kept separate from payments for foster carers. Conversely, a few noted that the current system is effective and well understood and that the SRA helped to provide consistency in payments.

Q20. Do you think there should be a national approach to fees for foster carers?

Among those who answered Q20 (77% of all respondents), over four fifths (82%) agreed there should be a national approach to fees for foster carers while 18% were opposed. Over four fifths of both individuals (82%) and organisations (83%) supported the proposal.

Almost three quarters of respondents commented to explain their answer. The most common themes were suggestions for what a national approach to fees for foster carers should look like, that it would provide greater clarity, and that would be fair.

Suggestions for a national approach to fees

Several respondents made a range of suggestions about what a national approach to fees for foster carers could include, such as the introduction of a national minimum fee which may support carer recruitment if published, fee increases, and standardised fees potentially with some flexibility. Comments similar to that in Q19 were made, calling for employment status and salaries for foster carers. A desire for a national approach beyond fees was expressed, to include allowances, additional payments and retainer fees.

Benefits of adopting a national approach

Several respondents thought that a national approach to fees for foster carers would achieve more certainty, transparency, simplicity, clarity, and consistency across areas and agencies, allowing for easier movement for foster carers between them. A recurring theme was that a national approach would also create parity, fairness, and equity. Namely, it would reduce variation across the country so that foster carers are paid the same for doing the same job. It was also thought to support foster carers' feeling valued and respected.

“Yes, we need to eradicate the potential detriment that some carers can experience depending on who they are approved by. We want to see foster carers be remunerated fairly and proportionately for the complex task that they undertake.” – East Ayrshire Council

It was noted by several respondents that a national approach could improve recruitment and retention of foster carers. Some detailed that nationwide consistency could also help to reduce competition between areas and agencies. In turn, it was thought that this could help to reduce children being placed out of their area and give carers more choice on where they foster and for which agency.

“Local authorities currently use fees (as do agencies) to outbid others. This puts us in competition with each other, and if foster carers are recruited by an agency/local authority that is not their own local authority this leads to children being placed out of area. We need to end this practice now.” - Individual

General support for a national approach was expressed by some respondents.

Vary by needs, cost of living and experience

Several respondents felt that fees should vary. Views included that this could cater for different children’s needs or ages, particularly by paying more to carers undertaking specialist placements. Some at Q20 and some at Q21 suggested varying fees to take account of the cost of living, which was noted to be higher in certain areas. The need for regional cost differences - such as council tax and housing costs - to be reflected within fees or an additional payment was also suggested. Some felt that fees should vary to recognise different levels of carer experience or knowledge, and the type of care provided.

Other comments

Two respondents disagreed with a national approach and highlighted complexities in implementation, for example the potential it could lead to some foster carers receiving less money than currently, reducing recruitment or risking foster care family breakdowns.

Q21. Do you think there should be a national approach to additional payments?

Among those who answered Q21 (72% of all respondents), 82% felt there should be a national approach to additional payments while 18% did not. A clear majority of individuals and organisations agreed with the proposal, at 85% and 77% respectively.

Two thirds of respondents commented at Q21. The most common themes were that a national approach could create fairness, suggestions for what additional payments could be provided for, and general expressions of agreement.

Agreement and benefits

A recurring theme was that a national approach to additional payments could help to create parity, fairness, equity and consistency across areas. It was also suggested that it could streamline support and reduce the number of foster carers moving between local authorities for increased payments.

General expressions of support were made by some respondents, noting standardisation would be beneficial. A small number noted a national approach could minimise competition between agencies and areas, resulting in fewer carers moving between areas and fewer children being placed out of area. One respondent commented that for events such as birthdays, costs for food and presents are the same across the country and there should not be variation in additional payments.

Purpose of additional payments

Some respondents suggested what additional payments should be made, introduced or increased for. A range of individual suggestions included:

• The cost of petrol for rural carers
• Home insurance and excesses
• Emergencies
• Damage to home or items in home by children
• Sick pay
• To cover periods between placements
• Clothing and shoes for children
• Starting placements
• Birthdays, Christmas and holidays
• Additional qualifications and roles
• Caring for children with complex additional needs

Suggestions for implementation

Another theme was suggestions for implementation. These included the need for set criteria, associated funds, minimum payments that can be added to by local authorities, and guidance on good practice. A small number expressed the view that additional payments should be at the discretion of local authorities or IFAs.

Disagreement

Disagreement with a national approach to additional payments was expressed by a small number of respondents, suggesting that there could be unintended consequences to consider. A few individuals commented that circumstances and needs are too variable to have a national approach and highlighted the potential negative financial implications for local authorities if no extra funding is provided by central government.

Q22. Should the financial model for foster carers include a retainer fee for when a foster carer does not have a child placed with them?

Around seven in ten of all respondents (71%) answered Q22, with high levels of support for the proposal overall (92%) and among both individuals (94%) and organisations (88%).

Almost two thirds of respondents provided a response to explain their answer at Q22. The most common themes, from most to least prevalent, were that retainer fees would help with carer recruitment and retention, could recognise that foster carers may not have other income, and provide carers with financial stability and predictability.

Benefits of a retainer fee

Including a retainer fee for foster carers was thought by several respondents to help with recruitment and retention. It was suggested that a retainer fee could make carers feel valued and respected, could be beneficial for carer wellbeing by reducing stress and burnout, and reduce uncertainty between placements. These benefits could, in turn, help recruit and retain carers generally and within specific agencies and areas.

“When a child leaves there is a period of mourning, and for everyone’s mental health you should be able to take time to heal without the added burden of financial stress.” - Individual

Several respondents thought a retainer fee would recognise that carers may experience periods of not working or with reduced or low income if they do not have a placement. As some carers may be reliant on their foster carer's income to pay their mortgage and bills, periods without a placement can mean they need to find other temporary work. It was, therefore, noted by several respondents that a retainer fee could help provide carers with predictability and financial stability. It was also noted that some essentials, such as car and home maintenance, are ongoing and need to be paid for, even if a child is not currently with a foster carer. Other brief comments supporting a retainer fee noted it was more realistic and like other jobs where people are paid for breaks or being on call.

“Improving financial security for carers through a system of retainers is important. Many do not feel the income is sufficiently secure to get by if, for whatever reason, they don’t have a child or children placed with them.” – UNISON Scotland

Some respondents noted the need to ensure the right placements and matches are made when considering the introduction of a retention fee. They thought that a retainer fee could support this by encouraging placement changes or rejections if they are not the right match rather than foster carers keeping with their placement or accepting unsuitable placements out of financial need.

Considerations for implementation

How a retainer fee could be achieved within the existing financial model was explored by some respondents. This included suggestions that retainer fees should be consistent with clear conditions and should be time-limited, with one specifying a maximum of 28 days. Conversely, one respondent suggested a retainer fee should be available indefinitely if the foster carer is approved and available, including during allegation investigations. Other singular comments suggested a fee should cover when carers are supporting a child to move onto another placement, and that it should be implemented in the same way as additional payments.

Some respondents expressed a view that a retainer fee should only be paid in certain circumstances, such as if the carer is available for another placement, or when a match has been made but the child has not yet moved in.

Other themes

Another theme was disagreement with a retainer fee, with comments that it is unnecessary in practice and is already happening. Some raised concerns about paying retainer fees, including that it could require substantial change to the existing financial model and increased costs for local authorities and IFAs, while one commented that it should be up to agencies to determine whether they pay a retainer fee.

Q23. Do you think there should be a national approach for Continuing Care allowances and fees?

Among those answering Q23 (75% of all respondents), almost all (96%) expressed the view that continuing care allowances and fees should be governed by a national approach.

Just over two thirds of respondents left a comment at Q23. The most common themes in order of prevalence were the need for Continuing Care, greater consistency in Continuing Care allowances and fees, and the current Continuing Care system.

Need for continuing care

Many respondents used this question to comment on the need for funded Continuing Care for young people. They detailed current challenges, highlighting that many young people are not ready to leave care and need ongoing support to transition into adulthood. The lack of funding for foster carers to provide this ongoing support was highlighted, with some using their own funds to support these young people. Respondents highlighted that a national approach for Continuing Care allowances and fees may help to mitigate this, a view endorsed by attendees at a few engagement events.

Greater consistency and fairness

Several respondents highlighted the need for greater consistency, standardisation and clarity in the fees and allowances for Continuing Care across IFAs and local authorities. Some supported a move to a national approach to reduce any disadvantage experienced by carers or young people based solely on where they live.

“There are inconsistencies across the country in what allowances are paid to young people who are in Continuing Care, and the Scottish Recommended Allowance does not stipulate what the allowance should be or include Continuing Care. To prevent this postcode lottery a national approach should be considered to continuing care allowance” - North Ayrshire Health and Social Care Partnership

Brief statements in support of a national approach for Continuing Care allowances and fees were made by some respondents. Where detail was provided, it was felt this could help to create parity, fairness, and equity and minimise disadvantage to young people.

Implementation considerations

Some respondents made comments on changes required and considerations for a national approach, including calls for:

• Additional funding from the Scottish Government to make the proposal feasible.
• Allowances for children with complex needs, such as disabilities, within Continuing Care.
• Minimum rates, which local authorities can increase, with variable options to adapt to individual needs.
• Reduced allowances that cover food and household costs, with the young people in Continuing Care placement taking some financial responsibility.

Q24. Would an enhanced framework of transparency with a legal requirement, for example, on local authorities and independent fostering agencies to publish foster care allowances assist foster carers and wider recruitment and retention?

Four fifths of respondents left a comment at Q24. Most commonly, respondents gave their general support to the proposal, though less-mentioned themes included that transparency might not be helpful, consistency is needed, and an enhanced framework could help potential carers make more informed decisions.

Support for an enhanced framework

Many respondents agreed with the proposal for an enhanced framework, with comments ranging from a brief ‘yes’ to fuller explanations, such as the need for clear information or that it would act as an incentive to maintain minimum allowance rates.

Some also suggested the proposal would promote consistency, for similar reasons to those outlined in Q9, or felt it would be more aligned with other arrangements for the use of public funds. A few respondents felt it could help with recruitment or retention, for instance by managing expectations or promoting equity for carers.

Some respondents supported the proposal, noting that greater transparency would assist carers or potential carers in making informed choices about what agency to work with or whether they can financially afford to become carers. Attendees at various engagement events shared these views.

“Yes, greater consistency and transparency in this area would make it easier for foster carers to independently research agencies and make an informed choice.” - Individual

“In our view, an enhanced framework of transparency for local authorities is a positive step.” – Includem

Transparency may not be helpful

Contrasting with the theme above, some respondents, two thirds of whom were individuals, commented that transparency may not be helpful. Reasons included that the proposal:

• Could create uncertainty among carers or that people would be primarily attracted to fostering for the fee rather than to meet the needs of children.
• Would not allow fair comparisons due to differences in fees, allowances and support across agencies.
• Could create more competition between agencies including that it might encourage foster carers to move between agencies, drive up fees or allowances, or price smaller agencies out of the market.

A legal requirement is not needed

Some respondents expressed the view that a legal requirement was unnecessary, for instance, if fees were standardised or because allowances were already published.

“There is no need to legislate for publishing foster care allowances. COSLA will continue to work with the Scottish Government and member authorities, as well as the IFAs they work with, to encourage publication of allowances.” - COSLA

Suggestions for implementation

Although they did not directly answer the question, some respondents gave suggestions for how this proposal could be introduced. Ideas included using a central register, a national payment scheme with regional weighting, and providing guidance on national standards including what the clothing allowance should cover.