Supporting Young People with Money Management

Some young people are able to manage their own finances and bank accounts with minimal support. However support will be needed from the Service to help young people to develop money management skills and to open bank accounts if they do not already have one.

All 16- and 17-year-old children in care and care leavers will be eligible for a personal allowance from the local authority. This will be paid directly to into a young person’s bank account where possible unless there are safeguarding concerns.  If a young person does not have a bank account, they will be supported to open one as soon as possible.  In the interim workers will make arrangements to ensure a young person receives their personal allowance via workers or a Post Office Payment if they have their own mobile phone.

Planning for When a Young Person turns 18

When a young person turns 18, they may be entitled to various welfare benefits and the social worker/personal adviser should agree with the Service who is going to support the young person with claiming these benefits if they are eligible. All workers should be guided by the local Care Leaver Joint Protocol with the DWP. This provides guidance and timescales so that young people can prepare their claim ahead of their 18^th birthday.

All financial arrangements and agreements should be recorded in the Care/Pathway Plan and monitored by the Service and the social worker/personal adviser.

Most young people will be able to make decisions about their finances, they can decide where they would like to keep their cash and any bank cards. Any potential risk of theft from others should be explained to them by staff, so that they can consider this as part of their decision-making process.

Young people should be discouraged from storing large quantities of money at the accommodation as this increases the risk of abuse and/or financial anomalies.

Young people will be supported to make decisions about how to spend their money and must always be permitted and supported to do so. They may need staff support with shopping, paying bills and budgeting or to access online banking facilities.

The young person’s social worker should be consulted on any decisions regarding finances particularly if it is not everyday funding such as a holiday, purchasing a large item etc.

If a young person needs support to manage their finances and has their own bank account, staff may need to support them to understand how bank accounts work and liaise with the bank should there be a problem with their account.

Money in the Young Person's Accommodation

Young people are responsible for looking after their own money in their accommodation. In shared accommodation they will have access to a lockable pedestal or lock box.

There does not need to be a record kept of a young person’s spending, unless they ask staff to do so or there are safeguarding concerns around the young person.

All financial irregularities should be reported to the registered person at the time they are noticed.

Recording processes should be sufficiently robust to allow a back-tracking of records in order to identify at which point the anomaly occurred, and what the potential reason for it was.

Unexplained financial discrepancies may warrant a safeguarding concern being raised.

Substantiated cases of dishonesty, theft or fraud are gross misconduct and staff involved can be dismissed and/or face possible criminal proceedings.

The young person should be encouraged and supported to store all bank statements, benefits letters or other financial documents securely in their property/home.