Can special guardianship allowance be paid as a lump sum?

A special guardianship allowance can be paid as a lump sum where the local authority considers a one-off payment appropriate under the child’s support plan and relevant financial support arrangements. This is different from converting future regular allowance payments into a single payment: a lump sum is normally considered for a specific need or expense rather than as a replacement for ongoing financial support.

What might a lump sum be intended to cover?

The purpose should be clearly identified and linked to the child’s circumstances. Depending on the local authority’s policy and the outcome of the assessment, a one-off payment may be considered for costs connected with establishing or maintaining the special guardianship arrangement. Examples could include an essential item of equipment, adaptations, travel connected with the child’s needs or other exceptional expenditure. The authority will decide whether the cost falls within the support it can provide.

A lump sum should not be assumed to cover every expense associated with caring for a child. Ordinary household costs, ongoing clothing and food costs, and other regular expenditure may be considered through a recurring allowance or other support instead. Ask the local authority to explain which costs it regards as one-off, which are recurring and which are outside its financial support policy.

How is the amount decided?

The local authority should consider the child’s needs, the guardian’s financial circumstances, any other support available and the reason for the requested payment. Financial support may involve an assessment of income, expenditure, benefits and other relevant resources. The authority may also take account of whether the requested cost is necessary, reasonable and properly evidenced.

There is no single lump-sum amount that applies to every special guardianship order. Policies differ between local authorities, and the amount may depend on the expense being considered rather than on a standard tariff. A payment may be offered in full, offered at a different level, or declined if the authority decides that the criteria are not met.

Will accepting a lump sum affect regular support?

Not necessarily. A one-off payment and a regular special guardianship allowance serve different purposes, but the written decision should make clear what the payment is for and whether it has any effect on other financial support. Do not assume that receiving a lump sum guarantees future regular payments, or that refusing it would automatically preserve or increase another payment.

Before accepting an offer, check:

• whether the payment is in addition to, or instead of, any regular allowance;
• the specific expense or purpose for which it is being provided;
• whether receipts or other evidence of how it is spent are required;
• whether the payment is made once or in instalments;
• whether it affects a support plan, later review or other assistance; and
• how the decision can be challenged if the amount does not meet the identified need.

What evidence may be needed?

The local authority may ask for quotations, invoices, professional recommendations or other documents showing the cost and purpose of the requested expenditure. It may also request information about household income and outgoings as part of the financial assessment. Keeping a written record of the child’s needs and the costs involved can help the authority assess the request accurately.

Where the proposed payment relates to an adaptation, specialist equipment or a service, supporting information from a relevant professional may be useful. The authority may have its own application form or evidence requirements, so ask for these before incurring a substantial cost. A payment is not guaranteed simply because an expense has already been incurred.

Can the decision be negotiated?

There may be scope to discuss the amount, timing or purpose of a proposed payment, particularly where the evidence shows that the child’s needs have been underestimated. Put any request in writing and explain the cost, why it is necessary, what alternatives have been considered and how the expense relates to the child’s welfare. If the authority refuses the request or makes an offer that does not reflect the assessment, ask for the decision and reasons in writing and follow its review or complaints procedure.

Financial arrangements should be discussed before the special guardianship order is made wherever possible. A proposed guardian can ask the local authority to explain how it has assessed the need, what support is included in the support plan and when the arrangement will be reviewed. If circumstances change significantly after the order, notify the authority and ask whether the financial support can be reconsidered.

A lump sum may also have tax or benefits implications depending on the payment and the guardian’s wider circumstances. The local authority should explain how it classifies the payment, but independent benefits or financial advice may be appropriate before relying on it in household budgeting. Keep the written offer, assessment, support plan and records of expenditure for future reference.