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Senior councillors have backed plans to offer Ceredigion foster carers better allowances and potentially pay no council tax.
At its October meeting, Ceredigion County Council’s Cabinet was asked to approve higher foster care allowances and consider a council tax rebate equivalent to 100 per cent for its registered foster carers.
A report by Councillor Alun Williams, the council’s deputy leader and cabinet member for through age and wellbeing, said: “The number of children looked after has increased from 85 at 31 March 2021 to 149, creating increased demand for suitable local placements. At the same time, local authority foster carers are being targeted by independent fostering agencies which can offer higher allowances.
“Where carers transfer to an independent agency, the children already placed with them usually remain in that placement to preserve continuity, meaning the council can become liable for substantially higher external placement costs for the same care arrangement.”
“The underlying basis of the proposal is to change the current multi-component foster care allowances, which costs approximately on average £290 per week, to a new simpler set of foster care allowances, equivalent to £560 per week (at 2026/27 prices) and also to offer the equivalent of full council tax relief to Ceredigion foster carers.”
The report said 47 council-registered foster carers were looking after 58 children: 34 carers lived in the county and 13 lived outside it. Their allowances cost £16,984 a week, or £883,000 a year.
The proposed allowances would cost £32,480 a week, or £1.689 million a year—an annual increase of £806,000.
It was proposed to make the changes in two phases, the allowance change with immediate effect, the council tax relief, subject to backing in the budget setting process, in the next financial year.
The report said the combined annual cost of higher allowances and proposed council tax relief would be about £922,000.
That figure excludes any savings from reducing independent agency and residential placements, which are listed at roughly £60,000 and £410,000 a year respectively.
“Current modelling indicates that each independent fostering agency placement converting to an in-house foster care arrangement would generate an estimated reduced cost of approximately £30,000, while each children’s residential placement converted to an in-house foster care arrangement would generate an estimated annual reduced cost of approximately c£380,000.”
“Therefore, for the proposal to break-even financially it would require in the region of 19 independent fostering agency placements and one children’s residential placement to convert to in-house foster care arrangements.”
The report said the proposals would “strengthen the recruitment and retention of local authority foster carers, increase the availability of stable local placements for looked after children and reduce reliance on significantly more expensive independent fostering agency and residential provision”.
The report added: “The recommendations will also support the council’s longer-term placement sufficiency duties and the transition towards not-for-profit children’s social care, while improving financial recognition and support for eligible foster carers.”
Cabinet members backed both recommendations.
