Summary: Miss X complained the Council has wrongly asked her to repay money she received for providing care to a former foster child under a staying put arrangement. We found the Council’s failure to properly advise Miss X regarding the staying put arrangement, and in particular when the arrangement and the payments associated with this arrangement would end, is fault. As was the Council’s failure to identify that payments had continued for 10 months longer than they should have. This fault has led to a significant debt and caused Miss X significant distress and anxiety. The Council will apologise, write off the debt and make a payment to Miss X.

The complaint

1. Miss X complains the Council has wrongly asked her to repay money she received for providing care to a former foster child under a staying put arrangement. Miss X was unaware the arrangement should have ended when Ms Y turned 21 or that she should not have continued to receive allowance payments.

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The Ombudsman’s role and powers

2. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word fault to refer to these. We must also consider whether any fault has had an adverse impact on the person making the complaint. I refer to this as ‘injustice’. If there has been fault which has caused significant injustice, or that could cause injustice to others in the future we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
3. If we are satisfied with an organisation’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)
4. Under our information sharing agreement, we will share this decision with the Office for Standards in Education, Children’s Services and Skills (Ofsted).

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How I considered this complaint

5. I considered evidence provided by Miss X and the Council as well as relevant law, policy and guidance.
6. Miss X and the Council had an opportunity to comment on my draft decision. I considered any comments before making a final decision.

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What I found

7. Young people who were previously looked after children can remain with their former foster carers after their 18th birthday under a Staying Put arrangement. Councils have a duty to monitor these arrangements and to provide assistance and support, including financial support. These duties continue until the young person is 21.
8. Miss X had been Ms Y’s foster carer for several years. Following Ms Y’s 18th birthday, Miss X and Ms Y entered into a staying put agreement with the Council in November 2019. The agreement does not specify an end date. Miss X received a weekly allowance for the support she provided Ms Y under this agreement.
9. Although Ms Y was 21 in September 2022, the Council did not end the staying put arrangement or stop the allowance payments. Miss X continued to care for Ms Y until July 2023.
10. Miss X says she discussed the arrangements with Ms Y’s personal adviser (PA) in October 2022. Miss X’s records of her conversation with the PA note Ms Y had been told she was now a tenant, but that no one had discussed a change in the arrangement with Miss X. The PA explained that when a staying put arrangement came to an end the former foster carer and young person would normally enter a private arrangement.
11. Miss X told Ms Y’s PA that she would not enter a private arrangement. She said Ms Y’s staying put arrangement was not the standard arrangement as Ms Y had additional needs. The PA confirmed they would speak to their manager and then update Miss X.
12. In January 2023 Miss X contacted the PA again as she had not heard from them, but had received a statement which suggested the Council was recalculating the allowance. The PA again said they would speak to their manager to clarify the position.
13. Miss X says that as the payments continued at the full rate and she was not told of any changes, she assumed any issues had been resolved and the staying put arrangement remained in place. The allowance payments then ended without notice in July 2023.
14. Miss X subsequently received an invoice for overpayments totalling £16,855.08 for the period since Ms Y’s 21st birthday. When she queried this the Council told her it could offer a payment plan to clear the debt within a year. It also said that due to the unclear nature of the Council’s communication it would reduce the amount owed as long as payments were being made. It did not at that stage confirm the level of reduction.
15. Having sought advice, Miss X made a formal complaint to the Council in May 2024. The Council responded six months later in October 2024. It advised that the payments should have stopped on Ms Y’s 21st birthday and apologised that this did not happen and that the Council continued to make payments. The Council confirmed it had now made changes so that payments would automatically stop when a young person reaches 21. This would prevent anyone being overpaid in the future.
16. The Council said Miss X was informed the arrangement would become a private arrangement when Ms Y became 21. And that Ms Y’s PA was not responsible for removing Ms Y from her home. It said the onus was on Miss X to give Ms Y notice to leave her home.
17. In addition the Council said Ms Y’s PA had informed Miss X she should not be receiving payments. And that they should have stopped on Ms Y’s 21st birthday and become a private arrangement. The Council was satisfied Miss X was aware she was not entitled to the payments and that she should return the money. It confirmed debt recovery action would recommence at the end of October 2024.
18. As Miss X is unhappy with the Council’s response and the time taken to respond, she has asked the Ombudsman to investigate her concerns. In response to my enquiries the Council has been unable to provide any correspondence with Miss X regarding arrangements for Ms Y staying with her beyond her 18th birthday. Nor is the Council able to provide records of any information or explanations given to Miss X in relation to the staying put arrangement and how long it would continue.
19. As the Council cannot evidence any discussion took place with Miss X to inform her it would end the staying put payments it has now offered to fully write off the debt. In addition, the Council has offered to pay Miss X £500 to recognise the avoidable distress caused.
20. The Council says it has revised the staying put agreement and is updating its policy to ensure there is greater clarity for all parties regarding staying put / living together arrangements.

Analysis

21. The Council’s failure to properly advise Miss X regarding the staying put arrangement, and in particular when the arrangement and the payments associated with this arrangement would end, is fault. In addition, the Council’s failure to identify that payments had continued for 10 months longer than they should have, leading to a substantial debt is also fault.
22. These faults caused Miss X unnecessary distress and anxiety, which was exacerbated by the length of time taken to complete the complaints process. Had Miss X been aware the staying put arrangement and allowance would end on Ms Y’s 21st birthday they could have made an informed decision regarding Ms Y’s living arrangements.
23. The Council has now offered to write off the debt and pay Miss X £500 to recognise the distress its actions caused her. This is an appropriate offer, in line with our guidance on remedies.
24. The Council has revised its staying put agreement and is revising its policy to provide more clarity for those involved in these arrangements. It has also amended its procedures so that payments automatically stop on the young person’s 21st birthday. These changes are to be welcomed and in the circumstances I do not consider it necessary to make further service improvement recommendations.

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Action

25. The Council has agreed to:
• Apologise to Miss X for the distress and anxiety caused by the faults identified. We publish guidance on remedies which sets out our expectations for how organisations should apologise effectively to remedy injustice. The organisation should consider this guidance in making the apology I have recommended in my findings.
• Write off the debt in respect of the overpayments the Council is seeking to recover from Miss X in full
• Pay Miss X £500 in recognition of the distress and anxiety she has experienced as a result of the faults identified.
26. The Council should take this action within one month of the final decision and provide us with evidence it has complied with the above actions.

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Decision

27. I find fault causing injustice. The Council has agreed actions to remedy injustice.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman