Can special fostering payments continue when a young person stays put?

Special fostering payments may continue after a young person turns 18, but only where the fostering service agrees that they form part of the financial arrangements for the Staying Put arrangement. They do not usually carry on as an automatic extension of the fostering placement. At 18, the legal basis of the arrangement changes, so the payment must be reviewed alongside the young person’s accommodation, support and financial plan.

A Staying Put arrangement allows a young person who has been living with foster carers to remain in their former foster home after their 18th birthday. It is not the same as continuing to foster an under-18 child. The fostering placement normally ends when the young person reaches adulthood, and a separate agreement is made between the young person, the former foster carer and the responsible local authority or fostering service.

A special fostering payment is generally linked to a particular need, placement feature or agreed cost. For example, it may have been approved because the placement required additional support, adaptations, specialist equipment or a higher level of supervision. Once the fostering placement ends, the service should assess whether that reason still applies and whether the cost can properly be met under the Staying Put arrangements.

The outcome can therefore vary. A service might:

• stop the special payment when the fostering placement ends;
• replace it with a different Staying Put allowance or contribution;
• continue an agreed element for a defined period where the underlying need remains;
• include the relevant cost within a wider post-18 support package; or
• agree separate funding with the local authority rather than paying it through the fostering service.

The written policy and the individual agreement are particularly important. They should explain who is responsible for paying the former foster carer, what the payment is intended to cover, how long it will last, whether it is reviewed, and what happens if the young person’s circumstances change. A payment described informally as a “special fostering payment” should not be assumed to have the same status once the young person is living under Staying Put arrangements.

Before the young person turns 18, ask the supervising social worker or post-18 support team for a clear financial breakdown. This should distinguish between:

• any standard fostering allowance, which normally relates to an under-18 fostering placement;
• the allowance or contribution available for the Staying Put arrangement;
• any special payment connected with additional needs or agreed costs;
• contributions from the young person, including any relevant benefit or income arrangements; and
• one-off or ongoing costs such as travel, education, equipment, furnishings or support.

The young person’s needs should be considered as part of their pathway planning and transition planning. Relevant factors may include education or training, employment, health, disability, emotional wellbeing, independence skills and the amount of support required in the home. These factors do not automatically create an entitlement to a special payment, but they may affect the funding arrangement agreed for the placement after 18.

It is sensible to request the proposed Staying Put agreement before the arrangement begins, rather than relying on a verbal assurance that existing payments will continue. Check whether the document names the special payment, states its amount or calculation method, identifies the payer and gives an end date or review date. Also ask whether the payment is taxable and whether it could affect any benefits or other financial support. Tax and benefit treatment can depend on the exact arrangement, so professional advice may be appropriate where the figures or circumstances are complex.

If the service will not continue the payment, ask for the reason in writing and for an explanation of what alternative support has been considered. The local authority may have a complaints or review process, and the young person’s personal adviser should be involved where the decision affects their housing or transition plan. A foster carer should avoid agreeing to a reduced or unpaid arrangement until the practical costs and responsibilities have been properly discussed.

In short, Staying Put can sometimes include financial support that replaces or incorporates a special fostering payment, but the payment itself is not normally guaranteed beyond the end of the fostering placement. The key evidence is the fostering service’s policy, the young person’s pathway plan and the signed Staying Put agreement.