Financial Arrangements for Young People Leaving Care who are Living Independently

1. Making an Application for Planned Support

The Allocated Worker from the Pathways Team will make all applications for financial support on the Financial Pathway Plan. This includes Living Allowance, Top Ups, Accommodation and Special Grants (Setting Up Home Grant, Clothing Grant, and Birthday and Festivity Grants).

All applications for weekly payments should begin on a Sunday and end on a Saturday.

Applications for college/training expenses:

• The Pathway Worker must consult with the Connexions PA in order to be reasonably satisfied that the course is appropriate for the young person. Ideally, young people should progress by a level year on year;
• The Pathway Worker should ensure they have seen the written confirmation that the young person has signed onto the Course. This must include duration of the course, hours per week, the course name, and qualification(s) to be achieved. The young person should also give the Course Tutor's name. The young person should sign the data sharing consent form to allow the Connexions PA to monitor their progress and attendance on the course;
• Before claiming Additional Education, Training or Work Expenses, the Pathway Worker must explore all other possible funding sources, such as grants, DSS benefits, or bursaries.

Applications for Accommodation

• Pathway Workers should ensure they have followed local procedures before facilitating private rental or Bed and Breakfast arrangements for young people;
• Support costs for young people under 18 must be paid by the local authority and should be included in the accommodation costs. Support costs for young people over the age of 18 will be funded by Supporting People;
• Accommodation costs applications should not include charges for utilities or service charges; these should be paid by the young person. It is possible to deduct charges at source from young people aged 16 and 17 who are receiving other financial support from us, and by consent from young people over 18 who are receiving support from us;
• If a Bond is required it should be paid out of the Setting Up Home Grant. Admin fees should be claimed as an exceptional expense on the Financial Support Application Form - Exceptional Payments;
• Where the proposed accommodation does not have a known end date within this financial year, the Pathway Worker should put 31st March of the following year;
• It is acceptable to pay up to a week in advance for emergency accommodation;
• The young person's accommodation must be reviewed at each Pathway Planning Review.

Initial Applications for all financial support will be made in March of each year on the Financial Pathway Plan, to cover the following financial year.

Subsequent applications should be made if a young person's circumstances change. A new Financial Pathway Plan will override a previous one, so Pathway Workers must ensure that all payments for a young person are included on every application.

Applications should be signed by the young person and the Pathway Worker.

2. Making Payments

The Pathway Worker must complete the Payment Arrangements form and give this and the Financial Pathway Plan to the Pathways Team Manager for signature. 

The Pathway Worker should then pass both forms to the Administrative Officer - Pathway Team in order to arrange payment. No payments can be made without a copy of these forms being received.

Payments to Young People

Pathway Workers must specify on the Payment Arrangements Form whether they require Cash or BAC's payments to young people. Young people will be paid on Thursday, for the week beginning on the previous Sunday. For both cash and BAC's payments, the deadline for receiving applications (or stopping them) is Thursday of the previous week. Young people will not be paid part weeks.

Banks Automated Clearing System (BACS) Payments

• The Finance Worker will set up a BACS payment schedule for the payment according to the Payment Arrangement instructions;
• There will be no part week payments, or back payments on the payment schedule. The BACS schedule must be checked and signed by the Pathways Team Manager.

Cash Payments

• The Cash Payment Schedule will be prepared by the Finance Worker on the Thursday prior to payment. The Finance worker will seek the authorisation of the Pathway Team Manager and pass the schedule to the Project Administrator;
• Pay packets for each young person will be made up by the Project Administrator and kept in the safe;
• All cash payments issued will have a numbered receipt. These receipt numbers will be recorded on the Payments Analysis Sheet. In most cases these receipts will be signed by the young person. An exception will be for Christmas and birthday grants. These receipts will be signed by the Pathway Worker who has given the young person the money. Young people will sign a goods received receipt for items bought for them from their setting up home grant;
• The receipts will be retained by the Pathways Team and will be available for auditing.

Interim Payments

• If a young person needs to be paid before the first possible payment date, or is entitled to back pay, the Pathway Worker must complete a Cash and Cheque Requisition Form for the money required;
• The Pathway Team Manager must sign the Cash and Cheque Requisition Form, which will be coded to recoverable expenses;
• Where the money is not to be paid to the young person until the following week, the Pathway Worker may ask the Admin Worker to make up the money and keep it in the safe.

Loans and Deductions

• Where young people are being paid a regular allowance it is possible to arrange loans or deductions for bills at source in order to help young people budget their money. For details of circumstances where loans are acceptable, please see Appendix 1: Financial Entitlements Guidance. Loan deductions can be made from both cash and BAC's payments;
• The Pathway Worker will complete the Deductions Form, seek authorisation from the Pathway Team Manager and pass it to the Admin Officer;
• The Admin Officer will ensure that the appropriate deductions are made from the young people's payment schedule.

Payments to Other Accommodation providers

• Pathway Workers will advise accommodation providers that it is preferred that accommodation providers send invoices, but receipts will also be accepted;
• All invoices will be authorised by the Pathways Team Manager;
• Wherever possible they will be paid monthly in advance on the 1st of the month by BACS. The deadline for receipt of applications is the 25th of the preceding month;
• Emergency accommodation payments will not be included in the BACS run;
• If landlords require cheque payments, the Admin Worker will be responsible for raising regular cheque payments.

3. Unplanned Payments

Unplanned payments will include requests for emergency accommodation (e.g. Bed and Breakfasts), requests for emergency living allowance, and any other unplanned payments that are agreed by the Pathway Team Manager.

4. Reviewing, Revising or Cancelling Payments

It is the responsibility of the Pathway Worker to ensure that the young person continues to receive their entitlement and that the payment method remains appropriate. Details of payments being received must be included in all transfer summaries. 

Payments should be reviewed at each Pathway Plan Review and details included on the Review form. To amend payments or payment methods, the Pathway Worker will prepare a new Financial Pathway Plan.

To cancel payments, the Pathway Worker should e-mail Admin Officer - Pathway Team, detailing the young person's name, date of birth and the payment to be cancelled. If the young person is receiving more than one payment type, the Pathway Worker should confirm that the other payments are to continue; otherwise all payments will be stopped.

No payments can be cancelled less than a week before payment. It is not possible to change the schedule once it has been completed and signed by the Pathway Team Manager

Appendix 1: Financial Entitlements Guidance