How are staying put and supported lodgings funded?

Staying Put and supported lodgings are usually funded through an agreed arrangement between the local authority, a commissioned provider, the host and the young person. The payment is intended to help maintain the accommodation and support being provided, but it is not normally the same as a standard fostering allowance.

Staying Put funding

A Staying Put arrangement is for a young person who was previously looked after and remains living with their former foster carer after reaching adulthood. The local authority normally agrees the financial contribution with the former foster carer before the arrangement starts. The amount and payment structure can depend on local policy, the young person’s needs, the level of support required and what the arrangement is expected to cover.

Funding may contribute towards the former foster carer’s household costs and the practical support involved in continuing to provide accommodation. It may also reflect that the arrangement is no longer a foster placement: the former foster carer is not usually acting as a foster carer under the fostering allowance system, and the young person is an adult with greater responsibility for their own decisions.

The Staying Put agreement should explain:

• who will make the payment and who will receive it;
• how often payments will be made;
• what the payment is intended to cover;
• what each person is expected to contribute, such as household tasks, food or personal expenses;
• how changes in the young person’s circumstances will be considered; and
• when the arrangement and its funding will be reviewed.

A young person may also receive other financial support in their own right, depending on their circumstances. This could include income from employment, education-related support or benefits for which they are eligible. Such support does not automatically replace the local authority’s contribution. The effect of any income or benefit on the arrangement should be discussed with the personal adviser and the person coordinating Staying Put.

Supported lodgings funding

Supported lodgings hosts generally receive an agreed payment from the organisation or local authority commissioning the service. The payment recognises the accommodation, household facilities and practical support the host provides. Supported lodgings is not usually treated as fostering, so the financial arrangements are set separately from foster carer allowances.

There is no single national rate that applies to every supported lodgings arrangement. Funding can vary according to the commissioning organisation, the accommodation offered, the young person’s support plan and whether additional support is required. Some arrangements may separate payment for the room from payment for support, while others use one agreed amount. The written agreement should make this clear.

Depending on the scheme, the young person may be expected to make a contribution towards their accommodation or living costs. This should be agreed openly and recorded in the placement or lodgings agreement. It should not be assumed that every young person will pay the same amount, as their income, education, benefits and support needs may differ.

What funding may cover

Before the arrangement begins, the parties should establish whether the agreed funding covers items such as:

• use of a bedroom and shared household facilities;
• food and ordinary household costs;
• utilities and other accommodation-related expenses;
• the host’s practical guidance and agreed support;
• travel or activity costs connected with the support plan; and
• extra costs arising from a change in the young person’s needs.

Not every scheme includes all of these items. Personal spending, clothing, mobile phones, transport to work or education and other individual costs may remain the young person’s responsibility unless the agreement says otherwise.

Tax, benefits and household considerations

Payments can have tax or benefit implications for the recipient, and the position may differ between a Staying Put arrangement and supported lodgings. A host or former foster carer should not rely on assumptions about how a payment will be treated. They should ask the coordinating organisation for a clear breakdown and obtain independent advice from HM Revenue and Customs, a benefits adviser or an accountant where necessary.

It is also sensible to check whether the arrangement affects household budgeting, rent, council tax or any benefits received by other members of the household. These issues should be considered before signing the agreement, particularly where the young person’s contribution changes over time.

How funding is reviewed

Funding should be reviewed alongside the arrangement rather than treated as permanent. A review may be needed when the young person starts work or education, changes their benefits, requires more or less support, moves towards independent accommodation or reaches the end of the agreed period. Any change to the payment, responsibilities or eligible costs should be confirmed in writing.

If the proposed funding does not appear to meet the agreed responsibilities, the host or young person should raise this with the personal adviser, social worker, supported lodgings coordinator or commissioning organisation. Ask for the decision to be explained, including the policy or agreement used, what costs are included and how to request a review. Keeping copies of the funding agreement, payment records and review notes can help prevent misunderstandings.