Staying Put Policy
Scope of this chapter
This policy is consistent with, and takes account of, Staying Put - Arrangements for Care Leavers Aged 18 and Above to Stay on With Their Former Foster Carers - Government Guidance issued by the DfE, DWP and HMRC (2013); The Children Act 1989 Guidance and Regulations Volume 3: Planning Transition to Adulthood for Care Leavers.
Related guidance
Amendment
This chapter was updated in March 2025.
A Staying Put arrangement is where a Former Relevant child, after ceasing to be Looked After, remains in the former foster home where they were placed immediately before they ceased to be Looked After, beyond the age of 18.
It is the duty of the local authority:
- To monitor the Staying Put arrangement; and
- To provide advice, assistance and support to the Former Relevant child and the former foster parent with a view to maintaining the Staying Put arrangement (this must include financial support), until the child reaches the age of 21 (unless the local authority consider that the Staying Put arrangement is not consistent with the child’s welfare).
Under the Care Leavers (England) Regulations 2010, Planning Transition into Adulthood for Care Leavers Guidance and Government Staying Put Guidance (2013), the Local Authority must provide information about extending placements beyond the age of 18.
The intention of Staying Put arrangements is to ensure that young people can remain with their former foster carers until they are prepared for adulthood, can experience a transition akin to their peers, avoid social exclusion and be more likely to avert a subsequent housing and tenancy breakdown.
Note that the term 'arrangement' should be used rather than ‘placement’ - the term ‘placement’ denotes a situation where the local authority arranged and placed the child with a foster carer. Once the child reaches the age of eighteen and legal adulthood, the local authority is no longer making a placement, but facilitating a Staying Put arrangement for the young person.
Consideration will need to be given to the impact on foster carers' approval and their terms of approval, including the numbers approved for, and whether this number includes the Staying Put young person.
Young people living with foster carers supported by independent providers should be treated in the same way as those young people living with local authority in-house foster carers when consideration is given to a ‘staying put’ arrangement. Local authorities should have discussions with independent fostering providers at an early stage regarding the option of a ‘staying put’ arrangement. This discussion should include the amount of allowance the local authority will pay the former foster carer.
If a young person feels that his/her wish to remain with their former foster carer has not been properly considered by the local authority or they are unhappy with the way in which the local authority has acted, they may wish to speak to their Independent Reviewing Officer who chairs their reviews before they turn 18 and request a review of their Pathway Plan. The young person should be told of their right to use their local authority’s complaints procedure to voice their concerns, and of their right to have an independent Advocate.
Note: Where a Staying Put arrangement is in place, the local authority, where appropriate, may consider delegating part of the Personal Adviser function to the foster carer (See Leaving Care and Transition Procedure, Personal Advisers).
Discussion should start with the young person and foster carer regarding the option of staying put as early as possible, ideally before the young person reaches the age of 16.
If this has not already been done, the first Looked After Review following his or her 16th birthday should consider whether a Staying Put arrangement should be an option. This will entail assessing the implications for both the young person and the foster carer.
When carrying out an assessment of an Eligible child’s needs, the local authority must determine whether it would be appropriate to provide advice, assistance and support to facilitate a Staying Put arrangement. Where they determine that it would be appropriate, and where the child and the local authority foster parent wish to make a Staying Put arrangement, then the local authority must provide such advice, assistance and support to facilitate a Staying Put arrangement.
The young person’s Pathway Plan should set out all of the practical arrangements regarding the young person remaining as a young adult in the Staying Put arrangement. It should set out the ‘ground rules’ of the household as well as the areas of responsibility that all parties to the arrangement are expected to fulfil. Many of these will be an extension of the expectations on them when they were a foster child. This will cover arrangements such as:
- Preparation for adulthood and independence tasks;
- Finance, including young people having credit cards, loan agreements and mobile phone contracts registered at the address;
- Income and benefit claims;
- Friends and partners visiting and staying at the address;
- Staying away for nights/weekends and informing carers of movements;
- Education, training and employment activities;
- Health arrangements;
- Move-on arrangements;
- Issues related to younger foster care children in the placement, i.e. safeguarding, being a positive role model and time-keeping.
It should be assessed from the outset how the arrangement will help the young person develop the skills required for independent living once they move on. They should be supported to continue to develop a range of skills including:
- Relationships - getting on with neighbours; understanding acceptable behaviour; when and how to communicate with relevant professionals;
- Emotional Resilience - managing isolation and where to go for support. Building self-esteem;
- Finance and budgeting - opening a bank account, safe borrowing and managing debt, understanding basic financial products, benefits and welfare reform; budgeting for priority bills, household appliances and everyday shopping on a budget;
- Cooking - cooking healthily and on a budget; understanding nutrition and its impact on overall health;
- Managing a home - washing and ironing, cleaning, basic DIY, operating appliances and what is allowed within a tenancy; and
- Applying for jobs - understanding strengths and areas for personal development; developing job skills, understanding job/volunteering pathways and support available; understanding bursaries and other financial support; where to go for advice; understanding the impact of work on benefits.
Following the young person's 18th birthday, the legal basis on which they occupy the property (former foster home) changes (the legal term is that the young person becomes an 'excluded licensee' lodging in the home) - this should not denote that the young person will be treated differently than they were as a fostered child. In addition, the carer may also become, and be deemed, the young person’s landlord/landlady.
The associated change from foster child to adult member of the household, and for the carer from foster carer to Staying Put carer, (technically the young person’s landlord) should be carefully and sensitively planned in order to ensure that both young people and the carer/s understand the nature of the arrangement and that the positive aspects of being in foster care are not diminished by the new legal and financial arrangements and terminology.
Where fostered children are living in the household, the checks and requirements associated with fostering legislation will apply and will provide a framework for safeguarding and checking arrangements for the whole household.
In these situations the carer must remain an approved foster carer and the Fostering Services (England) Regulations and Guidance will apply with the consequential requirements of supervision, review and safeguarding. Whilst the fostering legislation will primarily apply to the placements of the fostered children, it does ensure that a system of approval, checking and supervision is applied to the whole household.
Additionally, where foster children are in placement, the foster carers will need to be returned to the fostering panel due to a change in circumstances as the child/young person Staying Put will have reached adulthood and become an adult member of the fostering household.
Young people remaining in a foster care household at the age of eighteen will become adult members of the household and will require a valid Disclosure and Barring Service check in settings where a foster child or foster children are living. To ensure that the check (and possible subsequent risk assessment) is completed by the young person’s eighteenth birthday the process will need to commence in sufficient time.
From the age of eighteen, young people are no longer legally ‘in care’ or ‘looked after’, and therefore fostering arrangements and legislation relating to children placed with foster carers no longer apply. Whilst legislation relating to fostering will no longer apply (if no foster child remains in the household), key standards should continue to govern the expectations of the Staying Put arrangement. This should include:
- A system for considering if a person’s approval as a foster carer should be ended and for implementing the deregistration/termination process in circumstances where the foster carer is unlikely to be caring for any further foster children in the future;
- A system for reviewing and approving the Staying Put arrangement and carer/s to ensure that the arrangement complies with local authority expectations;
- Safeguarding and risk assessment checks on household members and in certain circumstances regular visitors;
- Health and safety requirements (as a minimum this should comply with landlord and licensee/tenant requirements);
- Regular supervision and support, possibly, from their fostering supervising social worker;
- Opportunities to attend appropriate training.
Local authorities will need to assess individual circumstances and consider the appropriateness of all of these checks where the Staying Put young person is the only person living with their carer/s and it is not envisaged that further foster children will be placed.
In circumstances where it is clear that the carer will not be fostering any further children, it may be deemed appropriate to terminate their approval as a foster carer. In situations where it is possible that they may foster again in the future, it would be inappropriate to terminate their approval; given the length of time that re-approval would take. Where a foster carer’s approval is terminated, the local authority will need to ensure that the Staying Put arrangement continues to meet appropriate standards.
The local authority will discuss with the former foster carer whether they require any particular training and guidance to help support the young person. The type of support that a former foster carer will need to provide in a ‘staying put’ arrangement is likely to be different to that they provided when fostering the young person. It should be explored with the former foster carer the type of training and support they think they will require, particularly in helping the young person develop their independent life skills. Whether the former foster carer is from the local authority or an independent fostering service, careful consideration should be given to continued support which could include peer support.
Whilst the level of financial support payable will depend upon individual needs and circumstances, former foster carers will be paid an allowance that will cover all reasonable costs of supporting the care leaver to remain living with them. Clear information will be provided to foster carers on the financial support which may be provided for staying put arrangements, in order to help foster carers plan well in advance whether they wish to participate in such arrangements.
When deciding upon the level of financial support payable, careful consideration will have to be given to the impact of the ‘staying put’ arrangement on the family’s financial position. The impact will vary from family to family.
It will be necessary to consider:
- How extending placements will impact on the allowances provided by the Local Authority and whether other funding, e.g. funding for housing related support, will contribute to meeting Staying Put costs;
- Any financial contributions from the young person from their wages, salary, benefits or educational allowances. Depending on their circumstances, young people who remain in a Staying Put arrangement may be able to claim means tested benefits for their personal needs from their eighteenth birthday;
- Insurance issues including liability and household insurance.
The local authority will explain to the young person their full entitlements, including how they will provide the young person with their leaving care grant once they move on from a ‘staying put’ arrangement and live independently.
Milton Keynes Children & Families Service is committed to ensuring staying put carers are provided with financial and practical support to enable young people to remain in a staying put arrangement. All staying put carers receive a standard weekly allowance of £265.69 (which includes the weekly rent element). In order to assist the young adult to develop independence skills and also to subsidise the cost of staying put, the young adult is responsible for a weekly rent element of this allowance. As such the young adult is responsible for the payment of the rent element, which may be paid from earnings or via Housing Benefit from Milton Keynes Housing Benefit Department (this will be the equivalent of the local housing benefit element of universal credit; approx. £70 a week).
Staying Put General Allowances
From the young adult’s 18th birthday, Staying Put carers are no longer expected to provide pocket money, a clothing allowance or personal allowance elements. Young adults are expected to replace these via earnings, education allowances or a means tested benefit.
In order to create parity with other care leavers, fostering birthday and Christmas/festival allowances and access to the holiday allowances cease once a young adult reaches age 18 (the 18th birthday allowance is covered by the fostering policy). From the young adult’s 18th birthday these payment areas are covered by the Care Experienced Young People's Financial Policy.
Any additional funding or requirements relating to family contact, specific activities and health needs for individual young adults and “Staying Put” arrangements should be agreed from the Care Experienced young people’s financial policy. and should be set out in the young adult’s Pathway Plan.
As set out above all young adults (from the age of 18) are required to claim a personal benefit, or, replace the clothing, pocket money and personal allowance element by earnings and also claim Housing Benefit to pay rent.
In situations where young adults are working, and do not claim a means tested personal benefit they will be expected to use their earnings to replace the pocket money allowance, clothing allowance etc and also claim housing benefit to pay rent. Earnings that result in a reduction of housing benefit will need to be made up by a contribution by the young adult.
Young adults living in foster care placements/Staying Put arrangements with sisters, brothers and certain extended family members who are formally approved as foster carers are not eligible to claim housing benefit on reaching the age of 18. In situations where a young adult is not eligible to claim Housing Benefit Milton Keynes Children & Families Service will pay the rent/accommodation element of the staying put arrangement. In situations where a young adult is not eligible to claim Housing Benefit, Milton Keynes Children and Families Service will pay the rent/accommodation element of the staying put arrangement. Young adults will be expected to pay their element of the rent if they are working (based on the housing benefit contributions scale).
All Housing Benefit should be paid directly to the staying put hosts and will be deducted from the staying put allowance.
Young People can find out about the benefits they are entitled to by visiting Check benefits and financial support you can get (GOV.UK).
Liability for Rent
All young adults living in a staying put arrangement have a liability for rent based on the prevailing Milton Keynes shared room rate, which is set on a commercial basis. Young adults are expected to pay the rent from their earnings or housing benefit, or a combination. The liability for rent is set out in the young adult’s licence agreement see:
- Appendix Two - Standard “Staying Put” Arrangement - Housing Benefit Claim Letter - Licence to Occupy – Licence Agreement. (SP- HBL02) - to follow.
From April 2013 Council Tax Benefit has been replaced by Council Tax Support schemes that reflect individual local authority priorities and are administered through local rules.
The impact of the Staying Put arrangement on Staying Put carers’ Council Tax and Council Tax Support will depend on both the circumstances of the Staying Put carer and the young adult. For example, full time students are ‘invisible’ for Council Tax purposes and will not have any impact on the Staying Put carers’ Council Tax or Council Tax Support.
In circumstances where a Staying Put carer is working and in receipt of the 25% single person Council Tax reduction, this discount may continue when a Staying Put young adult is living in the arrangement. The continuation of the 25% discount will depend on the circumstances of the young adult.
Where Staying Put young adults are claiming a means tested benefit, a Non-dependent Deduction should not be applied to the Staying Put carers’ own means tested benefit claim.
When planning for a Staying Put arrangement, consideration should be given to the impact of the arrangement on the Staying Put carers’ Council Tax, Council Tax Support and whether a Non-dependent Deduction will be applied. In circumstances where an increase in Council Tax occurs; a reduction in Council Tax Support applies, or a Non-dependent Deduction is applied an application should be made to the Milton Keynes Resource Panel for a payment from section 23C equivalent to the carers financial loss.
Staying Put young adults will not incur an ‘Under Occupancy’ or bedroom tax charge on the “Staying Put” carers.
For HMRC purposes only, there is a broader definition of ‘Staying Put’. A ‘Staying Put’ carer (for HMRC purposes only) does not need to be a registered foster carer or former foster carer. This means that young people are able to return to a different Staying Put carer between the age of 18 and 21 (or until the completion of an education or training course) - for example during a university vacation.
Where a Staying Put arrangement meets the HMRC qualifying criteria (and where the young adult continues to be cared for as a member of the carer’s family) the Income Tax and National Insurance rules that apply to foster carers are extended to Staying Put carers. The young people are required to share the Staying Put carers’ home and daily family life during the placement’ i.e. live as a ‘member of the carer’s family’. This system provides for foster carers and/or Staying Put carers to earn up to a given amount without paying Income Tax or Class 4 National Insurance Contributions on their caring income.
The Income Tax free allowance consists of two elements. Firstly, a fixed amount per foster care or Staying Put household. Secondly, an additional amount per week per child.
Where there is more than one paid Staying Put carer in the household, the allowance is shared equally by both carers.
The tax free allowance only applies to the Staying Put carer’s income from caring. If they have income from other sources, they will pay tax on that income in the normal manner.
Individual carers can consult their local HMRC office for guidance on their circumstances and liabilities.
For National Insurance Contributions purposes, in practice HMRC will treat the taxable profit from foster care or Staying Put care as earnings from self-employment. Foster care and Staying Put care is deemed as self-employment and as such carers should register as self-employed. All self-employed people aged 16 and over who are below State Pension age are liable and must register to pay Class 2 National Insurance Contributions.
Where a young adult remains living with their former foster carer/s under a Staying Put arrangement, the Income Tax and National Insurance rules that apply are set out in the ‘Shared Lives Carers’ – ‘Qualifying Care Relief’ Guidance.
The ‘Shared Lives Carers’ – ‘Qualifying Care Relief Guidance’ sets out that Staying Put carers receive tax exemptions up to a given ‘qualifying amount’ for each Staying Put young person living with them. The Staying Put qualifying rate mirrors the system and amounts that applied when the placement was previously a foster care placement.
Staying Put carers will be covered by the Qualifying Care Relief system where they provide a Staying Put arrangement for a young adult who was looked after immediately prior to the young adult’s 18th birthday. Qualifying Care Relief can continue until the young adult reaches the age of 21, or, until they complete a programme of education or training being undertaken on their 21st birthday.
The Qualifying Care Relief system provides for foster carer/s and/or Staying Put carer/s to earn up to a given amount without paying Income Tax or Class 4 National Insurance Contributions on their caring income.
The tax free allowance is only available to households with three or fewer placements. However, foster care placements are excluded for this purpose, and sibling groups are counted as one placement.
The tax free allowance only applies to the Staying Put carer’s income from caring. If they have income from other sources, they will pay tax on that income in the normal manner.
If the Staying Put carer/s exceed the allowance, they will have a choice of using the ‘simplified’ method or the standard profit and loss method to calculate their taxable profits. The carer/s will also be liable to pay Class 4 National Insurance Contributions on their taxable profit. Under the simplified method, a carer’s taxable profit is the income they receive from caring which exceeds their tax free allowance. Where foster carer/s or Staying Put carer/s do incur an Income Tax and Class 4 National Insurance liability and they have not used their personal allowance, this can be used to off-set this liability.
Individual carers can consult their local HMRC office for guidance on their circumstances and liabilities.
In practice HMRC will treat the taxable profit from foster care or Staying Put care as earnings from self-employment for National Insurance Contributions purposes.
Staying Put carer/s as well as foster carer/s should note that they may be able to claim Working Tax Credits which are administered by HMRC. Fostering/Staying Put care is counted as work for Working Tax Credit purposes. The carer’s taxable income is included in the total household income that is used to assess the amount of tax credits that they are entitled to. So, where the carer is paid less than their tax free allowance, their income from caring for tax credits purposes is also nil.
HMRC is aware that a number of foster carers and Staying Put carers may not have registered for Class 2 National Insurance Contributions because they make little or no taxable profit. Foster care and Staying Put care is deemed as self-employment and as such carer/s should register as self-employed. All self-employed people aged 16 and over who are below State Pension age are liable and must register to pay Class 2 National Insurance Contributions. Failure to do this may affect their entitlement to Employment and Support Allowance, Maternity Benefit, State Pension and Bereavement Benefit. However, self-employed carers may be able to apply for Carers Credits which have replaced Home Responsibilities Protection, and those with low taxable profits may be able to apply for a Small Earnings Exemption.
To claim a carers credit, foster carers/Staying Put carers must complete form CF411A available from HMRC.
If carers have not previously registered as self employed they can obtain further information by calling the Newly Self-employed Helpline on 0300 200 3504.
If they are currently registered to pay Class 2 National Insurance Contributions they can obtain further information by calling the Self-employed Helpline on 0845 915 4655 instead.
HMRC Helpsheet (hs) 236 sets out information about the ‘Shared Lives Carers’ – ‘Qualifying Care Relief Guidance’ - Fostering and “Staying Put” Income Tax and National Insurance framework.
Foster carers and Staying Put carers should always inform the DWP and HMRC if their circumstances change and should always check with the DWP and HMRC regarding their personal circumstances and how payments for foster care or Staying Put care may affect their means tested benefits or any Income Tax or National Insurance liability.
In situations where young adults are working, and do not claim a means tested personal benefit, they will be expected to use their earnings to replace the pocket money allowance, clothing allowance etc and also claim benefits to pay rent.
Young adults living in foster care placements/Staying Put arrangements with sisters, brothers and certain extended family members who are formally approved as foster carers are not eligible to claim housing benefit on reaching the age of 18. In situations where a young adult is not eligible to claim benefits, Milton Keynes Children & Families Service will pay the rent/accommodation element of the staying put arrangement. In situations where a young adult is not eligible to claim benefits, Milton Keynes Children and Families Service will pay the rent/accommodation element of the staying put arrangement. Young adults will be expected to pay their element of the rent if they are working (based on the housing benefit contributions scale).
A young person living in a staying put arrangement will be expected to provide their own food by using their income. An arrangement can be made whereby the young person agrees to contribute some of their income towards household food expenditure if the intention is for the staying put hosts to continue providing food / meals etc.
Staying Put carers will be provided with information about liability insurance cover in situations where Staying Put young people may make an allegation against a foster child in placement, or against their Staying Put carer/s, or an allegation is made against the Staying Put young person.
Living away from the former foster carer’s home for temporary periods such as attending higher education courses should not preclude a ‘staying put’ arrangement. This might include a residential further education institution; undertaking induction training for the armed services or other training or employment programmes that require a young person to live away from home.
The Staying Put arrangement extends until:
- The young person leaves the Staying Put arrangement;
or
- The young person reaches their twenty-first birthday.
Local authorities may wish to continue supporting a young person beyond age 21 if it meets their individual needs, such as finishing their course of education.
The local authority will want to ensure that the end of a ‘staying put’ arrangement is not another ‘cliff edge’ for the young person but a gradual transition to independent living. Procedures should be agreed at the outset about how any wish by the carer to bring the arrangement to an end should be managed. The social worker/personal adviser should discuss with the young person their transition from such an arrangement to another type of accommodation and agree the type of support the young person will require. These arrangements should be developed alongside joint protocols with the housing authority, setting out how access to social housing and care leavers ‘priority need’ status will be discharged.
An excluded licensee can be asked to leave the property by the staying put carer, who must give ‘reasonable notice’. In extreme circumstances it may be considered reasonable for the carer to give very short notice and ask the young person to leave on the same day when there is a safeguarding concern.
This Policy should be read in conjunction with the Staying Put Licence and Staying Put Living Together Agreement.
If a young person in a Staying Put arrangement dies up to and including the age of 24, notifications should be made in accordance with the procedure on Death or Serious Injury to a Child (Looked After, Child in Need or Care Leaver Up to and Including the Age of 24) Procedure.
Last Updated: March 4, 2025
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